Stacy Edelman
Chapter 2 Questions

1. In what ways do Different ideologies and political systems influence the environment in which MNCs operate?
In each country has there are own government controls and laws that have to be followed.
You have to take the countries religious views into consideration.
Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it.
A government could restrict a company's activity by intimidating and banning activities.

2. How do the following legal principles impact MNC operations.

1. The principle of sovereignty:
An international principle of law which holds that governments have the right to rule themselves as they see fit. Implies that one countries court system cannot be used to determine wrongful conduct or impose penalties in another unless that country agrees. Each country has it's own rules and if that person was a U.S. citizen working in a different country and was providing equal opportunity, the employee has no right to sue the employer.
2. Nationality Principle: Recognizes a nations interest in maintaining some degree of control over it's citizen residing in different countries. Managers who violate American foreign corrupt practices when traveling could be found guilty in the U.S.
3. The territoriality Principle: accepted in the united states but not in all countries. each country has the right to it's own jurisdiction within it's legal territory. ex.) If a German firm sells a defective product in England , they can be sued under English law.
4. Protective Principle: Every country had jurisdiction over behavior that adversely effect its national security. ex.) a french firm that sells blueprint to a satellite is subjected under U.S. laws.
5. Principle of Comity: A law that says there must be mutual respect for