Page 53 - DMGT547_INTERNATIONAL_MARKETING

International Marketing Ginni Nijhawan, Lovely Professional University

Notes Unit 3: Political Environment of International Marketing

CONTENTS
Objectives
Introduction

3.1 Scope
3.2 Types of Government
3.2.1 Political Systems

3.2.2 Economic Systems
3.3 Political Risk Analysis
3.4 Management and Measurement of Political Risk
3.4.1 Privatisation, Insurance: Political, Private and Government
3.5 Super-national Organisations and International Institutions

3.5.1 International Monetary Fund (IMF)
3.5.2 The World Bank
3.6 Summary

3.7 Keywords
3.8 Review Questions
3.9 Further Readings

Objectives

After studying this unit, you will be able to:

Describe the types of governments prevalent in world economies.
Distinguish between the political and economic systems.
Carry out the political risk analysis in an environment which is infested by a large number
of political parties not in tune with each other.

Find out the causes of retardation of economic growth of a country in case there is political
instability due to insurgency and threat of terrorism.

Get detailed information regarding the international institutions affecting political
environment of a country.

Introduction

International marketing operations are affected by the varying political environments that exist
around the world. An effective manager needs to be fully aware of the circumstances they are
getting themselves and their organisation into when approaching foreign markets.

Before attempting to enter into a new market, managers should take the time to carefully
observe the political environment from a distance. Political environments can be highly volatile

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