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18 Cards in this Set
- Front
- Back
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sovereign state
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independent and free from all external control
WTO considered as the biggest threat so far to national sovereignty |
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forms of governmetn
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rule by one - monarchy
rule by few - aristocracy rule by many - democracy free - enterprise democracy best solution |
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nationalism
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intense feeling of national pride and unity
more important than international relations |
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fear and animosity
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no nation state will tolerate penetration by a foreign company into its market if perceived a threat
toyota france |
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consfication
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the seizing of a company's assets without payment
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expropriation
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where the government seizes an investment but some reimbursement for the assets is made
not always fair |
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domestication
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when host countries gradually cause the transfer of foreign investments to national control and ownership through a series of government decrees by mandating local ownership
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exchange controls
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stem from shortages of foreign exchange held by a country
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local content laws
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countries often require a portion of any product sold within the country to have local content
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import restrictions
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selective restrictions on the import of raw materials to force foreign industry to purchase more supplies within the host country and thereby create markets for local industry
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tax controls
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a political risk when used as a mean of controlling foreign investments
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price controls
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essential products that command considerable public interest
food gas |
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labor problems
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labor unions have strong government support that they use effectively in obtaining special concessions from business
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political sanctions
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one or a group of nations may boycott another nation - stopping all trade
cuba - iran sanctions are historically unsuccessful in reaching goals |
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political and social activists
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internet has become effective tool
protest rallies against the us iraq war |
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NGOs
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nongovernmental organizations are increasingly affecting governmental decisions
protests lobbying red cross habitat for humanity |
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politically sensitive products and issues
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perceived effect on welfare of people or environment
EU banned hormone treated beef |
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strategies that multi national corporations use to minimize risk
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joint ventures
licensing political bargaining political payoffs |
