Political Systems Flashcards
Political Ideology
a set of principles, ideas, and doctrines used to organize and administer social order
Political systems
the principles, laws, and procedures relating to a particular form of government
Individualism
A political philosophy that prioritizes individual freedoms, rights, and liberties over the collective. It supports the idea that individual rights are best for society as long as they don’t infringe on others
Collectivism
The belief that societal good should be prioritized over individual interests, often advocating for state ownership of resources and production for equitable distribution.
Democracy:
Democracy: A political system where citizens participate in decision-making, typically through voting. It is often associated with individualism but can be aligned with collectivism in the form of social democracy.
Representative Democracy
Representative Democracy: A form of democracy where citizens elect representatives to make decisions and govern on their behalf.
Presidential Democracy
Presidential Democracy: A system of democracy where political power is divided into branches (executive, judicial, legislative) and the president is elected directly.
t.d USA og South Korea
Parliamentary democracy
Parliamentary Democracy: A democratic system where the legislative branch (parliament) elects ministers to govern, rather than a president elected by popular vote.
Social Democracy
Social Democracy: A system combining democracy with socialist principles, where governments are elected democratically but focus on collective welfare and regulating individualism for equal opportunities.
Autocracy:
Autocracy: A political system where power is concentrated in the hands of a single ruler or small elite, often without citizen participation. Nearly 60% of governments were autocratic until the late 1980s and early 1990s.
Totalitarianism
totalitarianism an extreme form of autocratic political system in which the government regulates every aspect of public and private life
Theocratic government
theocratic government a form of totalitarian government in which leaders rule by a mandate from God by interpreting religious law
Infant Industry Protection:
Infant Industry Protection: Friedrich List proposed protecting emerging domestic industries from foreign competition through temporary tariffs until they mature and can compete globally.
Stages of Economic Development:
Stages of Economic Development: List outlined five stages for a nation’s economic development:
Savage stage
Pastoral stage
Agricultural stage
Agricultural and manufacturing stage
Agricultural, manufacturing, and commercial services stage
Mixed Political Systems:
Mixed Political Systems: Most countries use a combination of political ideologies, blending elements of individualism, collectivism, democracy, and autocracy. These systems are shaped by both internal and external influences and vary by sector.
State-Owned Enterprises (SOEs):
State-Owned Enterprises (SOEs): Legal entities created by governments to engage in commercial activities. SOEs are common in strategic sectors such as energy, transportation, and banking, and are designed to generate profit for the government.
Political Sensitivity in Trade:
Political Sensitivity in Trade: Some industries, like Japan’s rice farming, are politically sensitive due to cultural significance and strong domestic political influence. Governments protect these industries through regulations, subsidies, and import restrictions.
Political Risk:
Political Risk: The risk that political conditions in a host country may change, potentially negatively affecting foreign businesses, such as through expropriation, trade controls, or regulatory changes.
Expropriation
Expropriation: A government’s seizure of privately owned assets or businesses, often with minimal compensation, typically under the guise of acting in the public interest.
Macro Political Risk:
Macro Political Risk: Political actions that affect all foreign investments and operations in a country, such as expropriation, currency and trade controls, regulatory restrictions, war, terrorism, and changes in labor or tax laws.
Example: Venezuela’s extreme inflation and trade controls that forced many foreign companies out of business.
Micro Political Risk:
Micro Political Risk: Political risks that affect only a specific sector, firm, or project, such as corruption, contract breaches, or environmental protests.
Example: Protests against a hydroelectric power plant in Brazil that raised construction costs.
State-Owned Enterprises
State-Owned Enterprises
Example: Saudi Aramco. Saudi Arabia’s oil company.
*State owns and operates the business
*Goal is to make a profit
*Profits are returned to the government
Partial State-Owned Enterprise
Example: Shanghai Disney. Joint venture between Walt Disney (43% ownership) and three companies owned by the Shanghai government (57% ownership).
*State has partial ownership of the company
*State may or may not have direct control
*Part of the profits are given to the state
State Supported
Example: Tesla. Tesla has received nearly $5 billion in government incentives, grants, tax breaks, discounted loans, and environmental credits.
*State backs a company either by guaranteeing loans or directly providing resources
*State provides incentives, grants, tax breaks, subsidies
*State does not have direct control
*State often does not get direct payment rather it gets indirect benefits from job creation and growth
