What legal and political environments does the nike face in international market

At the conclusion of the Kennedy Round negotiations, tariffs on dutiable nonagricultural products averaged 9. So may ingredient and nutrition information. For example, many large retailers have decided to adapt to consumers' increasing enthusiasm for social media by establishing corporate Twitter accounts and opening online storefronts in Facebook.

There are two important implications of this fact for export marketers. Such non-tariff barriers may merely be devices to soften up foreign rivals and force them into regulatory voluntary restrictions on trade. The principle ones are as follows: These disrupt business operations.

They maintained that the regulations worked for the benefit of everyone: Other government activity, which affects capital investment includes joint venturing insistence and repatriation of funds.

However, the problem with this solution is that the legal system in the host country may not be as developed and foreigners rarely win cases against a host country.

In Zimbabwe, for example, HJ Heinz, the multinational food agent, has entered into partnership with Olivine industries.

How Do Elements of a Marketing Environment Affect Marketing Decision-Making?

However, a series of other bodies and legislation exists. The most important rules in any system are those defining, allocating and enforcing property rights, and rules and conventions defining allowable and non-allowable forms of cooperation and competition standards, rules of contract, fair trading etc.

What can a multinational company do to minimize exposure to political risk?

What this means is that for you, an employer, you cannot rely solely on government policy when conducting your business. Producers of restrictive administrative regulations are incredibly creative in establishing barriers to trade.

There are 5 main political causes of instability that affect the international markets: Other fears are that Africa will lose out on agricultural prices but textiles will get a boast.

In theory these taxes correspond with various international taxes, such as value-added taxes and sales taxes. At the conclusion of the Kennedy Round negotiations, tariffs on dutiable nonagricultural products averaged 9.

This can be seen in the following case3: The constant flow of new products and new materials used in manufacturing processes introduces new problems. Evidence of the inaccuracy of grade classification practices is provided by frequent failure of import and export figures of the same commodity to reconcile between two countries.

Anyone entering the industry after a charge of dumping against it will face the highest rate of levy. Changes in regulation Governments could alter their rules and regulations.

What Political and Legal Forces Impact Industries?

In order to circumvent protection, options include avoiding certain commodities or industries, teaming up with local contacts, producing from inside the market or self regulation. In the last years remarkable changes have been taking place in the ideologies of many countries. Approximately two-thirds of all world trade is now conducted under tariffs based on the BTN system.

Preferential tariff A preferential tariff is a reduced tariff rate applied to imports from certain countries. GATT basically stands to defuse trade tension between countries and smaller countries enjoy better access to larger countries' markets through GATT than they could if they had negotiated by themselves.

In the last years remarkable changes have been taking place in the ideologies of many countries. Chocolate producers stand to profit from relaxed standards, especially if the price of cocoa were to soar.

Even a tariff schedule of several thousand items cannot clearly describe every product that enters into international trade.

The target in these negotiations, which were still under way inwas to achieve another 35 percent tariff reduction. Over time, even if initially the investment is not favourable, the Government may relax its conditions as it sees the benefits.

Some of these regulations are intended to keep out foreign foods while others are directed towards legitimate domestic objectives. The federal government employs more than 2. Consumers no longer need to visit a retailer's main website to buy; some platforms allow them to make the purchase without ever leaving Facebook.

Unfortunately, most, if not all, of these American companies had no recourse for getting any of that money back. Political and Legal Environment of Business For many businesses, non-market forces are as significant as market factors: the interaction between government institutions, elected officials, policy-oriented activists and NGOs shape the legal environment for firms.

Political risk is the risk that a country will make political decisions that have adverse effects on corporate profits. Learn about micro and macro risk. Getting Global: Political and Legal Environment Getting acquainted with how politics and law affect business activities around the world is a critical concern of today’s successful global organizations.


China is an emerging economy that offers lot of market opportunities for foreign investment. In this article, we’ll be discussing Nike’s standings and potential future through the lens of a PESTLE analysis, which looks at the Political, Economic, Social, Technological, Legal, and Environmental factors that affect an organization.

The Political Environment Figure shows how political and legal factors are part of the external environment that influences managerial decisions. A political system integrates the parts of a society into a viable, functioning unit/5(3).

What legal and political environments does the nike face in international market
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A PESTLE Analysis of Nike