How The Coercive Capacity Of Sovereign Nation States Affects International Business Environment

1155 words - 5 pages

Executive SummaryThis article discusses the concept of coercive capacity of sovereign nation-states and its influence on international business environment according to Krasner's and Schmidt's researches. It indicates that coercive capacity can be defined in three different dimensions: state-to-state, state-to-MNCs and state-to-supranational economic organizations and then explains how coercive capacity of nation-states affects in the three different levels.What is the coercive capacity of nation-states?The coercive capacity of nation-states can be defined as the ability that influential sovereign nation-states impose great pressures on other objects in order to gain much more interests. Simultaneously, "other objects", according to Krasner and Schmidt, comprise states Krasner, 1995(), multinational corporations (MNCs) and supranational economic organizations Schmidt, 1995(), all of which constitute the international business environment.How the coercive capacity of sovereign nation-states affect international business environment?As discussed above, the embodiments of coercive capacity of nation-states can be summarized in three aspects: state-to-state coercion, state-to-MNC coercion and state-to-supranational organization coercion.State to StateAccording to Krasner's description Krasner, 1995() , "coercion occurs when one powerful state threatens to impose sanctions unless their counterparts in another compromise their domestic autonomy", which implies that power asymmetry between states entails the coercion. In the area of international business, the most significant coercion is economic sanctions Krasner, 1995(), when a powerful state attempts to use economic sanctions to affect a weak state's domestic institutions, policies or personnel for the purpose of gaining economic or political interests. Take, the economic sanctions placed on Iran by the United States, for example. Since the US wanted to control oil outlets in the world in favor of its huge domestic oil consumption, the US has paid extraordinary attention to states that possess large amount of oil, one of which is Iran. However, the Iran government adopts a policy against the US interests. As a result, the US has been trying to use economic sanctions such as suspense of trade to change Iranian domestic political climate. The expectation of the US is to substitute the present Iranian authority with a new US-friendly central government that can support the US interests. All the above indicates that the coercive capacity caused by power asymmetry will influence trade relations between states, which is a part of international business environment.However, the concept of coercive capacity in Krasner's research can be expanded that states can use this power to protect their domestic economic or political interests from foreign impact brought by globalization rather than to grab resources or interests abroad as shown in the case of Iran and the US. For example, when George Bush became the...

Find Another Essay On How the Coercive Capacity of Sovereign Nation-states Affects International Business Environment

"Critical evaluation on how overtime culture becomes a factor in overall success for the business in a international environment"

3863 words - 15 pages practices of a host country is very vital to the successful execution of international organisations' overseas business operations and success. This paper work among others discusses critically how overtime culture becomes a factor in overall success for their business in a host country abroad. All these will be preceded with vital issues of discussions on matters of cultural aspects, management cultures; issues affecting culture with organisation

Business Environment: Weatherford International Ltd Essay

2601 words - 10 pages management. By nature, the exploration and production of oil and gas is seen as particularly vulnerable to several of these factors and as such are further analysed in this report. Legal Environment “All business activities, from the establishment of the organisation through to the sale of the product to the customer, are influenced by the law.” Worthington and Britton (2009). Business law consists mainly of employment law, health and safety

The Lost Nation: United States of America

1105 words - 5 pages on the television. “There has been a breaching crisis that hit the stock market and every industry in the Nation today. The Dow Jones Industrial Average fell 91 points.” The news correspondent grumbly reported. “Honey, the annual returns from our investments. Our savings accounts in our banks have been nullified. All of our property have been mortgaged to debt bond investment firms.” My dad frowned as he notified mom with her eyes bulging out

Qantas International: Analysis of the External Environment

2163 words - 9 pages initiatives “can be taken by the federal government” to ensure Qantas “remains a strong national carrier” (Klan, 2014). Infrastructure & Capacity Environment: The international airline market in Australia is dominated by Sydney International Airport, which makes up 41% of international seats, followed by Melbourne (23%), Brisbane (15%), Perth (12%) & all others at (9%), see figures 3, 4 & 5. Given that Sydney airport is reaching capacity, the

How Information Technology Affects Business

881 words - 4 pages years ago. We can talk face to face with people while being continents apart, we can find information we need at the touch of a couple of buttons, and in return have become more productive, proficient, reliable, and better planners. Because we have increased our productivity, and improved our performance due to the technology, we have become more profitable as a result.Resources:Ebert, R.J., & Griffen, R.W. (2005) Business essentials (5th ed.) Upper Saddle River, NJ, Prentice Hall.Rooster Graphics International. (2000). Internet use by small business. Retrieved September 29, 2006, from Rooster Graphics website:

How ATM Hacking Affects Business is the U.S

1167 words - 5 pages and card readers into gas pumps in order to retrieve confidential information. Robertson also speaks more on how fraudsters even apply for jobs that deal with technical-support so that they can learn to access personal data and other important information. Robertson said that these fraudsters go after companies and individuals who use ATM machines. Robertson states that the U.S Secret Service estimated the annual losses of ATM skimming to be more

Macro environment how to impact on business operation of the company that you choose

3169 words - 13 pages to pay.·The social-cultural environmentComponent of the marketing environment consisting of the relationship between the marketer, society, and its culture. Doing business in China successfully requires an understanding of China as a nation and of the culture of the Chinese people. "A society's culture determines how it members communicate and interact with each other" (Griffin & Pustay 2003, p.85). A nation's culture can impact on

Analysis Of The External Environment Of Business

1591 words - 6 pages Analysis of the External Environment of Business The Technological Environment The external business environment consists of four elements, they are as follows: Political, Economic, Social and technological. It would be impossible to analyse the whole environment in one essay, I have therefore decided to focus my essay on the technological environment. I have chosen this area to focus on because as Palmer and Hartley point out, it is one

Analysis of the External Environment of Business

1663 words - 7 pages Analysis of the External Environment of Business A ‘business' is commonly defined as an organisation which provides goods or services in addition to transforming input into output. Its objectives can either be profitable or non-profitable. One of the main requirements that must be fulfilled for a business to exist is that it must act and react to activities and occurrences beyond that of the organisation. These factors that happen outside of

The United States Economy: The Slow Recovery of a Nation

817 words - 4 pages The United States Economy: The Slow Recovery of a Nation Content Introduction…………………………………………………………………………... page 2 Monetary Policy……………. ……………….……………………………………… page 2 Recovery…...……….…………………………………………………………….….. page 3 Conclusion……………………………………………………..…………………...... page 3 References……………………………………………….……………….……….….. page 5 The United States Economy: The Slow

The United States is a Nation of Immigrants

2138 words - 9 pages Today the United States of America is regarded as a global economic leader. The standard of living in the U.S. is higher than that of most other nations. Our nation is considered an economic super-power. Economic needs have often caused Americans to seek immigrants as workers, and economic opportunities have attracted foreigners. The United States is a nation of immigrants. Our nation has been shaped by successive waves of immigrants who

Similar Essays

Emerging International Issues Within The Business Environment

914 words - 4 pages internationally if they continue in the current trend. I will briefly explain each of these issues then tie them together to how it relates to the international business environment.Environment and Natural ResourcesThe world's ongoing population explosion has placed great strain on the world environment. This rapidly growing population, along with a move toward urbanization and industrialization, has placed significant pressure on natural

Role Of International Hrm In An International Business Environment

3121 words - 12 pages strategies in order to manage the employees and also to survive in the market. Denice E (1999) states that the companies are becoming multinational companies since globalisation has opened the international market and removed the barriers of doing business in the international market. It becomes the responsibility of the human resource managers working in a multinational company to manage the diverse environment and human resources in the

How Social Environment Affects Lifestyle Essay

896 words - 4 pages Social environment is influenced by one's power and wealth. This, inturn, determines success or failure in peoples' lives. If one were born with a'silver spoon' in his mouth, he would easily be able to attend a fancy schoolno matter how intelligent he is or have any luxury he wants just because ofpower and wealth. On the flip side, if one were born to a poor family in abad neighborhood infested with violence and drugs, he would have a

E Waste And How It Affects The Environment

944 words - 4 pages disposal for: 2 to 4 kilograms of lead (CRT monitor), 6.3 kilograms of mixed plastics with other chemical content. Current PC disposal practices affect the environment by: putting heavy metal into the waste stream, releasing dioxins and furans during incineration, exposing workers to toner particles, tin-lead solder fumes, and chlorine and sulfur dioxide gases."How does this affect the environment? Chris Young from the Human Rights Advocates (http