International Political and Legal Environment Civil

Question: Discuss about the International Political and Legal Environmentfor Civil. Answer: Introduction Legal Environment The business organization must be aware of the legal systems that entail the rules to comply with. There are different major bases regarding the jurisdiction including Islamic law, commercial legal systems, civil or code laws, and common laws. These developments indicate the categories of laws many countries practice and how these laws work. Without an absolute international law to handle international legal disputes, the businesses have to determine the law governing the market or jurisdiction. This justifies that they can resolve legal issues based on contract provisions and authority (Czinkota Ronkainen, 2007). A business can also survive in the international market by respecting the laws and government policies such as intellectual property laws, cyber laws, antitrust laws, and environment and commercial laws. Political Environment The political atmosphere entails political risks and government stability as some of the factors that influence the business operations. In most cases, the global firms prefer a stable and friendly political environment. According to Cateora, Gilly, and Graham (2009), the government policies could define the potential of an organization to make profits. The five political factors cause instability in any international markets. These causes include trade disputes, extreme nationalism, unstable forms of government, and changes in the ruling states. The most important risks include cyber terrorism and cybercrime, violence, war, and terrorism, and political sanctions. Other political risks that businesses must understand include domestication, expropriation, and confiscation, social and political activist (Cateora et al., 2009). The economic risks are also important in understanding the vulnerability of a company politically. Although businesses must analyse the political environment impacts before it ventures into such markets, the global community has not adopted universal guidelines to define their operations. The investors have to understand how the political environment affects business by identifying threats and risks. Sometimes marketers respond to the forecasted risks by forming joint ventures, lobbying, political bargaining, and expand their investment base. Political Economy of International Trade Australia has used various structural reforms in the past two decades to transform the countrys economic performance. The country has applied conventional prescriptions by eliminating policy-related impediments and distortions to improve its growth. These efforts have made Australia a well-functioning market economy. However, the country needs further reform requirements because of the continued entrenched political obstacles. The Australian authority can introduce investment and trade barriers that would restrict export and import. Importantly, the country can enter the route of imposing tariff as an incremental approach to influence its economic growth. Australian authority remains committed to the provisions of the World Trade Organization regarding tariff quotas and tariffs and export subsidies. The authority has always established classification for the imported goods (Disclaimer, n.d). The importer is allowed to conduct self-assessment through declaration procedures. The Austra lian Customs and Border Protection Service makes the declaration to allow it enforce import restrictions. Australia also embraces Free Trade Agreements are part of the international treaties (AG, n.d). This agreements have seen Australia reduce import costs thus improve competitive position. References Australian Government (AG). (n.d). Free Trade Agreement. Retrieved from https://dfat.gov.au/trade/agreements/Pages/trade-agreements.aspx Cateora, P. R., Gilly, M. C., Graham, J. L. (2009). International Marketing, (14th Ed). New York: McGraw-Hill Irwin, 2009. Print. Czinkota, M. R., Ronkainen, I. A. (2007). International Marketing. United States: Thompson. Disclaimer. (n.d). Austrlian Export and Import Laws. Retrieved from https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-export-and-import-laws