Legal and Regulatory Factors
Expert-defined terms from the Specialist Certification in Political Risk Analysis in Global Business course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Legal and Regulatory Factors #
Legal and Regulatory Factors
Legal and regulatory factors refer to the laws, regulations, and policies that i… #
These factors play a crucial role in shaping the business environment and can have a significant impact on a company's operations, profitability, and overall success.
Antitrust Laws #
Antitrust Laws
Antitrust laws are regulations that are designed to promote fair competition and… #
These laws aim to protect consumers by ensuring that companies do not engage in practices that could harm competition or limit consumer choice. Examples of antitrust laws include the Sherman Antitrust Act and the Clayton Antitrust Act in the United States.
Arbitration #
Arbitration
Arbitration is a method of dispute resolution in which parties agree to have a n… #
Arbitration is often used in international business transactions to resolve disputes quickly and cost-effectively.
Bribery #
Bribery
Bribery refers to the act of offering, giving, receiving, or soliciting somethin… #
Bribery is illegal in most countries and can have serious legal and reputational consequences for businesses that engage in this practice.
Compliance #
Compliance
Compliance refers to the act of adhering to laws, regulations, and industry stan… #
Businesses must ensure that they comply with all relevant legal and regulatory requirements to avoid fines, penalties, and other consequences.
Corporate Governance #
Corporate Governance
Corporate governance refers to the system of rules, practices, and processes by… #
Good corporate governance is essential for ensuring that a company operates ethically and responsibly and protects the interests of its stakeholders.
Due Diligence #
Due Diligence
Due diligence is the process of conducting a thorough investigation or research… #
Due diligence helps businesses identify potential risks and opportunities and make informed decisions.
Environmental Regulations #
Environmental Regulations
Environmental regulations are laws that are designed to protect the environment… #
These regulations can impact businesses in various industries, such as manufacturing, energy, and construction, by imposing requirements related to pollution control, waste management, and conservation.
Export Controls #
Export Controls
Export controls are regulations that govern the export of goods, services, and t… #
These controls are designed to protect national security, prevent the spread of weapons of mass destruction, and promote foreign policy objectives.
Foreign Corrupt Practices Act (FCPA) #
Foreign Corrupt Practices Act (FCPA)
The Foreign Corrupt Practices Act (FCPA) is a U #
S. law that prohibits U.S. companies and individuals from bribing foreign government officials to obtain or retain business. The FCPA also requires companies to maintain accurate books and records and have adequate internal controls.
Intellectual Property Rights #
Intellectual Property Rights
Intellectual property rights refer to the legal rights that protect creations of… #
These rights include patents, copyrights, trademarks, and trade secrets.
Labour Laws #
Labour Laws
Labour laws are regulations that govern the relationship between employers and e… #
These laws address issues such as wages, working hours, workplace safety, discrimination, and collective bargaining. Labour laws vary by country and can have a significant impact on business operations.
Political Risk #
Political Risk
Political risk refers to the risk that political decisions, events, or condition… #
Political risk factors include government instability, policy changes, corruption, and conflict.
Regulatory Compliance #
Regulatory Compliance
Regulatory compliance refers to the process of ensuring that a company follows a… #
Compliance efforts may involve developing policies and procedures, training employees, and conducting audits to monitor adherence to regulations.
Sanctions #
Sanctions
Sanctions are measures imposed by governments or international organizations to… #
Sanctions are often used as a tool of foreign policy to encourage compliance with international norms or to punish undesirable behavior.
Tax Laws #
Tax Laws
Tax laws are regulations that govern the assessment and collection of taxes by g… #
These laws determine how much tax a business must pay, what expenses can be deducted, and how tax returns must be filed. Tax laws can have a significant impact on a company's financial performance.