Establish the Business in Totalitarian or Democratic System

Introduction All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they expand in diverse countries with the intention of increasing profits, market, revenues, as well as to prosper and grow (Dlabay and James 15). Political systems play a significant role in ensuring all this aspects occur; therefore, it is vital to consider which political system a country has in order to ensure a stable business environment for international companies. This report will critically examine the common statement “Democratic political system, as contrasting to totalitarian political systems, present international companies with more stable business environments to invest”. Personally, I agree with the statement because of diverse reason that justifies democratic political system to be the ideal form of government that provides a stable business environment for international companies. The report will address why I agree with this statement and it will include all the supporting evidences from diverse countries using either of the political system. 1. Overview of democratic and totalitarian political systems Democratic political system is a system whereby the government leaders of a country are elected directly by a wide or broad participation of the population or their representative. It is noted that a pure