Chapter 7 - Political And Legal Systems In National Environments Flashcards
Country Risk
Exposure to potential loss or other adverse effects on company operations and profitability caused by developments in a country’s political, legal and/or economic environments
Political System
A set of formal institutions that constitute a government
Legal System
A system for interpreting and enforcing laws
Rule of Law
The existence of a legal system in which rules are clear, publicly disclosed, fairly enforced and widely respected by individuals, organisations and the government
Intellectual Property
Ideas or works that are created by people or firms, and protected by patents, trademarks and copyrights
Extraterritoriality
The application of home-country laws to persons or conduct outside of national borders
Transparency
The degree to which firms regularly reveal substantial information about their financial condition and accounting practices
