Political and Legal System

Republic of the Philippines

Eulogio “Amang” Rodriguez Institute of Science and Technology

Cavite Campus

-------------------------------------------------

General Mariano Alvarez, Cavite

International Business (MBA )

Sir. Enrique Mercaida, MPA

Professor, Graduate Program

-------------------------------------------------

Prepared and Reported by : Annalyn A. Arceo, MBA Student

Political and Legal Systems

* Role and Importance of Political and Legal Systems

* Types of Political and Legal Systems

* Risks and Other Impact of Political Legislation

* Treaties and Conventions

* Resolution of International Business Disputes

* Role and Importance of Political and Legal Systems

Why should businesses care about the different political and legal systems around the world?

To begin with, despite the globalization of business, firms must abide by the local rules and regulations of the countries in which they operate.

US-based Google had to deal with the Chinese government’s restrictions on the freedom of speech in order to do business in China. China’s different set of political and legal guidelines made Google choose to discontinue its mainland Chinese version of its site and direct mainland Chinese users to a Hong Kong version.

Until recently, governments were able to directly enforce the rules and regulations based on their political and legal philosophies. The Internet has started to change this, as sellers and buyers have easier access to each other. Nevertheless, countries still have the ability to regulate or strong-arm companies into abiding by their rules and regulations. As a result, global businesses monitor and evaluate the political and legal climate in countries in which they currently operate or hope to operate in the future.

Political system - a set of formal institutions that constitute a government. It includes legislative bodies, political parties, lobbying groups, and trade unions. A political system also...