THE POLITICAL ENVIRONMENT OF INTERNATIONAL BUSINESS Flashcards
It consists of a set of political factors and government activities in a foreign market that can either facilitate or hinder a business’ ability to conduct business activities in the foreign market.
THE POLITICAL ENVIRONMENT OF INTERNATIONAL BUSINESS
The type of economic system a country builds is a political choice.
Economic System
citizen elect representatives to govern the country. an individual’s right to freedom of expression and organization
Democracy
absolute political control over the population.
Totalitarianism (dictatorship)
Types of Totalitarianism CRTT
Communist Totalitarianism
Right-wing Totalitarianism
Theocratic Totalitarianism
Tribal Totalitarianism
communist party
Communist totalitarianism
intense hatred of communism.
Right-wing totalitarianism
monopolization of political power in the hands of one religious party or group
Theocratic totalitarianism
oppressing other tribes or ethnic group
Tribal totalitarianism
risk associated with political changes that may negatively impact
domestic and foreign firms.
Political Risk
There are three main kinds of legal systems:
- Common Law
- Civil Law
- Theocratic Law or Religious Law
traditions and precedence, confrontational, flexibility
Common Law
constitute a code and focus on how the law is applied to the facts. most widespread legal system in the world.
Civil Law
is based on religious guidelines
Theocratic Law or Religious Law
The legal rights to use an economic property (resource) and to derive income and benefits from it. Can be both tangible or intangible and be owned by individuals, businesses, and governments.
Property Rights
homes, offices and factories.
Tangible Property
Intangible Property (IIPCT)
Intellectual Property
Intellectual Property Rights
Patents
Copyrights
Trademarks
intellectual activity
Intellectual Property
rights associated with the ownership of intellectual property.
Intellectual Property Rights
exclusive legal rights of inventors of new products or processes to derive income from such inventions.
Patents
exclusive legal rights of authors and publishers to publish and disseminate their work
Copyrights
exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others
Trademarks
DECISIONS AND CHOICES
ECONOMIC SYSTEM
limited resources available to satisfy the unlimited needs and wants of people.
Scarcity
Types of Economic Systems
CMM
Command Economy
Market Economy
Mixed Economy
production owned and controlled by the government.
Command Economy
invisible hand of market forces. production is privately owned.
Market Economy
involvement in business between government and private ownership.
Mixed Economy
