Government and Global Business. Chapter Four. In what ways do governments influences businesses?. 4-1 – Politics and Global Business. Political System – is the means by which people in a society make the rules by which they live.
Political System – is the means by which people in a society make the rules by which they live.
Mixed Systems – Most political systems are considered mixed. That means they have characteristics of both systems and fall somewhere in between.4-1 Politics and Global Business
Host Country – is the country in which a multinational enterprise is a guest.
Multinational enterprises fulfill a number of positive roles in a host country.
Social Responsibility – is the process whereby people function as good citizens and are sensitive to their surroundings.
What are some situations in other countries, that would influence your decision to NOT start a business?4-2How Government Discourages Global Business
Protectionism – is a government policy of protecting local or domestic industries from foreign competition.
Boycott – Absolute restriction on the IMPORTS of certain products from certain countries.
Economic Nationalism – the trend of some countries to restrict foreign ownership of companies and to establish laws that protect against foreign imports.4-2 Government Discourages Global Business
Customs duty – import tax
Sales Tax – Tax on the sale of products
Payroll Related Tax – Taxes deducted from a paycheck.
Value-Added Tax (VAT) – Tax on the increase in value of goods from each stage of production to final consumption.
Income Tax – Tax on the amount of income a person or company makes.4-2 Government Discourages Global Business