TAILIEUCHUNG - Lecture International business: Competing in the global marketplace (9/e): Chapter 2 - Charles W. L. Hill

In this chapter, the learning objectives are: Understand how the political systems of countries differ, understand how the economic systems of countries differ, understand how the legal systems of countries differ, explain the implications for management practice of national differences in political economy. | International Business 9e By Charles . Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 National Differences in Political Economy What Is A Political Economy? Political economy of a nation - how the political, economic, and legal systems of a country are interdependent they interact and influence each other they affect the level of economic well-being in the nation What Is A Political System? Political system - the system of government in a nation Assessed according to the degree to which the country emphasizes collectivism as opposed to individualism the degree to which the country is democratic or totalitarian LO1: Understand how the political systems of countries differ. What Is A Political System? Collectivism stresses the primacy of collective goals over individual goals Individualism – an individual should have freedom in his own economic and political pursuits Democracy - government is by the people, exercised either directly or through elected representatives Totalitarianism - one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties What Is An Economic System? There are three types of economic systems Market economies - all productive activities are privately owned and production is determined by the interaction of supply and demand LO2: Understand how the economic systems of countries differ. What Is An Economic System? Command economies - government plans the goods and services that a country produces, the quantity that is produced, and the prices as which they are sold Mixed economies - certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning What Is A Legal System? Legal system - the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is .

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