IB Chapter 2 National Differences in Political Economy.pptx

Chapter 2: National Differences in Political Economy
International Business

1. Chapter 2 NATIONAL DIFFERENCES IN POLITICAL ECONOMY

2. INTRODUCTION You already know that political, economic, and legal systems of countries differ. Why these differences are important to companies that do business in foreign markets? Let’s discuss .

3. POLITICAL system The political economy of a nation refers to 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 Types of Political Economy: Democracy Totalitarianism

4. Totalitarianism Communist totalitarianism Theocratic totalitarianism Tribal totalitarianism Ring-wing totalitarianism “Form 4 group to represent each of the totalitarianism systems. Discuss on each of these systems”

5. Totalitarianism is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties Communist totalitarianism – found in states where the communist party monopolizes power Theocratic totalitarianism - found in states where political power is monopolized by a party, group, or individual that governs according to religious principles Tribal totalitarianism - found in states where a political party that represents the interests of a particular tribe monopolizes power Right-wing totalitarianism - permits some individual economic freedom, but restricts individual political freedom

6. Issue 1 How Is The Political Economy Changing?

7. Economic systems A nation’s political system and its economic system are connected. There are three types of economic systems: the market economy, the command economy , the mixed economy What are the differences between this three types of economic systems? Let’s discuss… Search any related cases related to this…

8. Issue 1 What Determines A Country’s Level Of Economic Development?

9. Issue 2 How Does Political Economy Influence Economic Progress?

10. Issue 3 How Do Geography And Education Influence Economic Development?

11. Legal system The legal system of a country refers to the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained There are three types of legal systems Common law Civic law Theocratic law

12. Issue 1 How Are Contracts Enforced In Different Legal Systems?

13. Issue 2 How Are Property Rights And Corruption Related?

14. Issue 3 How Can Intellectual Property Be Protected?

15. Economic transformation The shift toward a market-based system involves Deregulation – removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate Privatization - transfers the ownership of state property into the hands of private investors the creation of a legal system to safeguard property rights

16. Other Related issues What Is Product Safety And Liability? How Free Are Countries Politically?