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
