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This week we are discussing the political, legal, and technological environment faced by international managers. The global political environment can be understood via an appreciation of ideologies and political systems. Ideologies, including individualism and collectivism, reflect underlying tendencies in society. Political systems, including democracy and totalitarianism, incorporate ideologies into political structures.Additionally, the current legal and regulatory environment is both complex and confusing. There are many different laws and regulations to which MNCs doing business internationally must conform, and each nation is unique. Also, MNCs must abide by the laws of their own country. For example, U.S. MNCs must obey the rules set down by the Foreign Corrupt Practices Act (the FCPA is an act that makes it illegal to influence foreign officials through personal payment or political contributions). Privatization and regulation of trade also affect the legal and regulatory environment in specific countries.
Question 1: How will changes in the political and legal environment in the Middle East and North Africa affect U.S. MNCs conducting business there?
Question 2: How might evolving political interests and legal systems affect future investment in the region?
Question 3: How does technology result in greater integration and dependencies among economies, political systems, and financial markets, but also greater fragility?
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