Escolar Documentos
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Cultura Documentos
Chapter 2
National Differences
in Political Economy
2-2
Introduction
Answer:
A country’s political economy refers to its political,
economic, and legal systems
These systems are interdependent, and interact and
influence each other
A country’s political system has major implications for the
practice of international business
2-3
Political Systems
2-4
Grouping
Collectivism market economy
Individualism command economy
Privatization and mixed economy
Nationalization
2-5
Collectivism and Individualism
2-6
Collectivism and Individualism
Socialism
Modern socialists trace their roots to Karl Marx
advocated state ownership of the basic means of
production, distribution, and exchange
the state then manages the enterprises for the benefit
of society as whole
2-7
Collectivism and Individualism
2-8
Collectivism and Individualism
Individualism
a political philosophy that suggests individuals should
have freedom over their economic and political pursuits
can be traced to Aristotle who argued that individual
diversity and private ownership are desirable
Individualism stresses
individual freedom and self-expression
letting people pursue their own self-interests to
achieve the best overall good for society
democratic systems and free markets
2-9
Democracy and Totalitarianism
2-10
Democracy and Totalitarianism
2-11
Democracy and Totalitarianism
2-12
Economic Systems
2-13
Market Economy
2-14
Command Economy
2-15
Mixed Economy
2-16
Legal Systems
2-17
Different Legal Systems
2-19
Differences in Contract Law
Answer:
The United Nations Convention in Contracts for the
International Sales of Goods (CIGS) establishes a
uniform set of rules governing certain aspects of the
making and performance of everyday commercial
contracts between sellers and buyers who have their
places of business in different nations
countries that adopt CIGS signal to other nations that
they will treat the Convention’s rules as part of their
law
2-20
Property Rights and Corruption
Property rights - the legal rights over the use to which a
resource is put and over the use made of any income
that may be derived from that resource
Property rights can be violated
by private action (theft, piracy, blackmail, and the like
by private individuals or groups)
by public action (public officials extort income or
resources from property holders)
excessive taxation, requiring expensive licenses
or permits from property holders, or taking assets
into state ownership without compensating the
owners
2-21
Property Rights and Corruption
2-22
Property Rights and Corruption
Figure 2.1: Rankings of Corruption by Country 2009
2-23
Foreign Corrupt Practices Act
2-24
The Protection of Intellectual Property
Intellectual property - property that is the product of
intellectual activity
computer software, a screenplay, or the chemical
formula for a new drug
Intellectual property rights include
patents - give the inventor exclusive rights to the
manufacture, use, or sale of that invention
copyrights - exclusive legal rights of authors,
composers, playwrights, artists, and publishers to
publish and dispose of their work as they see fit
trademarks - designs and names, often officially
registered, by which merchants or manufacturers
designate and differentiate their products
2-25
The Protection of Intellectual Property
2-26
Product Safety and Product Liability
2-27
Determinants of Economic Development
2-28
Differences in Economic Development
Map 2.1: GNI per Capita, 2008
2-29
Differences in Economic Development
Map 2.2: GNI PPP per Capita, 2008
2-30
Differences in Economic Development
Map 2.3: Growth Rate in GDP per Capita, 1997 - 2008
2-31
Broader Conceptions of Development
2-32
Broader Conceptions of Development
Map 2.4: Human Development Indicators, 2007
2-33
Political Economy and Economic Progress
2-34
Political Economy and Economic Progress
2-35
Geography, Education, and Economic Progress
2-36
States in Transition
2-37
The Spread of Democracy
2-38
The Spread of Democracy
Map 2.5: Political Freedom in 2009
2-39
The New World Order and Global Terrorism
The end of the Cold War and the “new world order” that
followed the collapse of communism in Eastern Europe
and the former Soviet Union, taken together with the
collapse of many authoritarian regimes in Latin America,
have given rise to intense speculation about the future
shape of global geopolitics
Geopolitical forces can affect how companies operate in
certain countries
2-40
The Spread of Market-Based Systems
2-41
The Spread of Market-Based Systems
Map 2.6: Distribution of Economic Freedom in 2008
2-42
The Nature of Economic Transformation
2-43
Implications of a Changing Economy
2-44
Implications for Managers
Answer:
There are two main implications:
1. the political, economic, and legal systems of a country
raise important ethical issues that have implications for the
practice of international business
2. the political, economic, and legal environment of a
country clearly influences the attractiveness of that country
as a market and/or investment site
2-45
Benefits
2-46
Costs
2-47
Risks
2-48
Overall Attractiveness
2-49
Classroom Performance System
2-50
Classroom Performance System
2-51
Classroom Performance System
2-52
Classroom Performance System
2-53
Classroom Performance System
2-54
Classroom Performance System
2-55