Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
International Business
Country Differences:
We need mental models to help us to:
Understand the similarities and differences
of political, economic, and legal
infrastructures in nations across the globe
Investigate the intricate changes in these
infrastructures that contain opportunities
or threats for the business
Political Systems
System of Government in Nations”
Collectivism
Socialism
Socialist ideology is split into 2 broad
camps
Communism
Communists believe that socialism can
only be achieved through violent revolution
and totalitarian dictatorship
Social democracy
Marxist roots. State owned enterprises run
for public good rather than private profit
Individualism
Democracy versus
totalitarianism
Democracy
Totalitarianism
One person/party exercises absolute
control over all spheres of human life
(competing political parties are
banned)
communist totalitarianism
theocratic totalitarianism
tribal totalitarianism
right wing totalitarianism
Economic systems
Connection between political ideology
and economic systems
countries where individual goals are
given primacy free market economic
systems are fostered
countries where collective goals are
given primacy there is marked state
control of markets
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
International Business, 5/e
2-11
Legal systems
Rules - laws - that regulate behavior
processes through which laws are
enforced & grievances are redressed
Businesses must observe
home country laws
host country laws
international Laws and Treaties
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
International Business, 5/e
2-13
Legal systems
Legal systems
Contract law
Contract law is the body of law that enforces a
contract
specifies conditions under which an exchange
is to occur
details rights and obligations of parties
Differences based on legal tradition
common law system
civil law system
theocratic law
bureaucratic law
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
International Business, 5/e
2-16
Contract law
Dispute resolution is often complex
where to arbitrate and whose laws apply?
host country or home country
validity of contracts and decisions
Property rights
Fig 2.1
Fig 2.2
Map 2.1
Map 2.2
Map 2.3
Map 2.4
Map 2.6
States in transition
Reasons for rise of democratic systems in
the 1980s and 1990s
Totalitarian regimes failed to deliver
economic progress
Real time information with modern
telecommunication technologies
Emergence of prosperous middle classes
Map 2.5
Fig: 2.3
Centrally
Planned
Economies
Market –
Based
Shift Economies
Mixed
Economies