Professional Documents
Culture Documents
National Differences in
Political Economy
2-3
Political Economy
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Political Systems
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• Collectivism • Individualism
- Collective goals are more - Is the direct opposite of
important than individual collectivism
goals - Central tenet is that
- Individual rights are individual economic and
sacrificed for the good of political freedoms are the
the majority ground rules on which
- In the modern world society is based
collectivism is expressed
through socialism
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2-6
• Democracy • Totalitarianism
- Government is by the - One person/party exercises
people, exercised either absolute control over all
directly or through elected spheres of human life
representatives (competing political parties
(representative democracy) are banned)
- Elected representatives are - Communist totalitarianism
held accountable through - Theocratic totalitarianism
safeguards - Tribal totalitarianism
- Right wing totalitarianism
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2-7
Economic Systems
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International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
2-8
Economic Systems
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International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
2-9
Legal Systems
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International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
2 - 10
Contract Law
McGraw-Hill/Irwin
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2 - 11
Property Rights
McGraw-Hill/Irwin
International Business, 6/e © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
2 - 12
Corruption as of 2004
Finland
New Zeland
United Kingdom
United States
France
Malaysia
Italy
Brazil
China
India
Russia
Zimbabw e
Indonesia
Nigeria
Bangladesh
0 2 4 6 8 10
Corruption Index (10=clean; 0=totally corrupt)
McGraw-Hill/Irwin
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2 - 13
McGraw-Hill/Irwin
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2 - 15
Eastern Europe
Asia Pacific
Latin America
Western Europe
North America
0 20 40 60 80
Percentage of Software that is Pirated
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2 - 16
McGraw-Hill/Irwin
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Differences in Economic
Development
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2 - 18
Differences in Economic
Development: Gross National
Income
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2 - 19
Differences in Economic
Development: Purchasing Power
Parity
Country GNI per Capita GNI PPP per Capita GDP Growth Rate
1993-2003(%)
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2 - 20
Differences in Economic
Development: Gross National
Product
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2 - 21
Broader Conceptions of
Development: Amartya Sen
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2 - 22
Broader Conceptions of
Development: Amartya Sen
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States in Transition
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700
600
500
400
300
200
100
0
1
3
98
98
98
98
98
99
99
99
99
99
00
00
1
2
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McGraw-Hill/Irwin
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• Deregulation
- Removal of legal restriction to the free play of market
systems
- Allowing establishment and operations of private
enterprises
• Privatization
- Transfer of ownership of state owned enterprise to private
individuals
• Legal systems
- Laws that support a market economy
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2 - 32
Managerial Implications
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• Differences in Culture
- What is culture?
- Social Structure
- Religious and Ethical Systems
- Language
- Education
- Culture and the Workplace
- Cultural Change
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2 - 34
Socialism
Return
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Safeguards of Representative
Ddemocracy
Communist Totalitarianism
Theocratic Totalitarianism
Tribal Totalitarianism
Common Law
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2 - 41
Civil Law
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2 - 42
Theocratic Law
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2 - 43
Attractiveness
Overall
Attractiveness
Risks
Political Risks: Social Unrest/Anti-Business Trends
Economic Risks: Economic Mismanagement
Legal Risks: Failure to Safeguard Property Rights
Return
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