6- IB Environment Flashcards
Political system
System of government in a nation. Political systems can be assessed according to:
- Degree to which they emphasise collectivism opposed to individualism
- Degree they are democratic/totalitarian
Totalitarianism
Leaders govern without people with endorsement, government controls much of peoples lives, leaders don’t tolerate opposing view points.
Imposed authority, lack of constitutional guarantees, restricted participation.
Forms: theocratic (religious leadership), secular (military and bureaucratic - communist, tribal, right)
Democracy
Government leaders elected directly by wide participation of the people or their representatives
Freedom of expression, periodic elections, full civil and property rights, minority rights
Communism
Represents an economic ideology where government/state owns and controls all major factors of production
Socialism
Gov/state plays strong role in economy and may own stakes in certain businesses. Don’t aspire to be classless. Tend to be somewhat more collectively than individually oriented, with disparities in income and wealth less extreme than in capitalist countries.
Capitalism
Business privately owned with strong individualistic profits orientation little role for government in purely capitalistic/free market.
Civil law
Based on comprehensive listing of legal rules in sets of written codes of law. Only legislated branch of government can change laws
Common law
Legislative bodies generally enact less specific rules, so judges have considerable authority with interpreting rules.
Advantages- judges can change interpretations based on societal developments.
Theocratic law
Based on religious documents and religious teachings. Islamic, Jewish, Hindi.
Criminal law
Establishes which violations of nations laws are crimes punishable by incarceration
Widely differs around world.
Contract law
Body of law governing legally enforceable agreements between parties to engage in economic exchange.
Tax law
Body of law addressing government levying of taxes upon individuals and corporations
Antitrust law
Laws designed to promote fair competition among businesses. Typically prohibit countries from engaging in collusion/acting in manner that thwarts competition.
Anti monopoly laws
Political risk
Conflict/violence, terrorism and kidnaping, property seizure, policy changes, local content requirements.
Managing: adaptation - partnerships, localisation, development assistance, insurance. Info gathering - current employees with relevant info, agencies specialising in political risk services. Influence local politics- lobbying, corruption.
Economic risk
Currency instability, lack of economic growth, inflation, conversion restriction, poor infrastructure, labour unavailability
