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(Chapter 2) What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches? …show more content…
Common law systems are used in England, which was where it originated. In common law systems, the decision made by a high court cannot be overridden by a lower court, the decision of the higher court is a binding precedent; where as in Civil law, there is no such thing as binding precedent. A civil law country provides the ability to view a law in each individual case rather then the higher courts decision. A customary law system reflects the wisdom of daily experience or more elegantly spiritual legacies and philosophical traditions. Customary law anchors the law in many indigenous communities defining the rights and responsibilities of members. Customary law prevails in many developing countries rather then being the oldest followed custom like Civil law. Theocratic law on the other hand, relies on religious doctrine rather then courts. Precepts and beliefs rule, ultimate authority is given to religious leaders. Iran, Saudi Arabia, Sudan, Yemen, Afghanistan, United Arab Emirates, Pakistan, Malaysia, and Mauritania are Islamic theocracies. The Vatican City is the only Christian theocracy, although its laws are still limited to the secular laws of Italy. Most theocracies are usually authoritarian in nature and often jail religious and political dissidents. When it comes to managing, these systems of laws are relevant because they help to dictate a company. …show more content…
The act hold two provisions, one that addresses accounting transparency requirements and another concerning bribery of foreign officials. The Foreign Corrupt Practices Act has affected ethical behavior among international businesses because any form of bribery or unreasonable “trade” can result in the loss of ones company or severe consequences. Nations need to be in the same understanding in order to complete a deal. “On Tuesday, the New York Times reported on Wal-Mart de Mexico’s alleged bribery of low-level Mexican officials, in a quest to open as many as 19 new stores. The DOJ and the SEC are currently investigating whether this violated the Foreign Corrupt Practices Act, which bars companies that operate in America from bribing “foreign officials” for business.” With such a large chain like Wal-Mart, company communicators need to be more alert of the laws. Bribing to produce more stores is not only illegal, its ethically
(Chapter 2) What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches? …show more content…
Common law systems are used in England, which was where it originated. In common law systems, the decision made by a high court cannot be overridden by a lower court, the decision of the higher court is a binding precedent; where as in Civil law, there is no such thing as binding precedent. A civil law country provides the ability to view a law in each individual case rather then the higher courts decision. A customary law system reflects the wisdom of daily experience or more elegantly spiritual legacies and philosophical traditions. Customary law anchors the law in many indigenous communities defining the rights and responsibilities of members. Customary law prevails in many developing countries rather then being the oldest followed custom like Civil law. Theocratic law on the other hand, relies on religious doctrine rather then courts. Precepts and beliefs rule, ultimate authority is given to religious leaders. Iran, Saudi Arabia, Sudan, Yemen, Afghanistan, United Arab Emirates, Pakistan, Malaysia, and Mauritania are Islamic theocracies. The Vatican City is the only Christian theocracy, although its laws are still limited to the secular laws of Italy. Most theocracies are usually authoritarian in nature and often jail religious and political dissidents. When it comes to managing, these systems of laws are relevant because they help to dictate a company. …show more content…
The act hold two provisions, one that addresses accounting transparency requirements and another concerning bribery of foreign officials. The Foreign Corrupt Practices Act has affected ethical behavior among international businesses because any form of bribery or unreasonable “trade” can result in the loss of ones company or severe consequences. Nations need to be in the same understanding in order to complete a deal. “On Tuesday, the New York Times reported on Wal-Mart de Mexico’s alleged bribery of low-level Mexican officials, in a quest to open as many as 19 new stores. The DOJ and the SEC are currently investigating whether this violated the Foreign Corrupt Practices Act, which bars companies that operate in America from bribing “foreign officials” for business.” With such a large chain like Wal-Mart, company communicators need to be more alert of the laws. Bribing to produce more stores is not only illegal, its ethically