NATIONAL DIFFERENCE IN POLITICAL ECONOM
NATIONAL DIFFERENCE IN POLITICAL ECONOMY
BY: K R KAUSHIK, VISITING FACUTY-AIMA, NEW DELHI
The Political Economy
A country’s political economy plays a HUGE role in international business, for several reasons:
Political and economic systems differ widely across countries, making it difficult to make generalizations or have a uniform strategy.
Countries, represented by their governments, are sovereign entities.
Collectivism and Individualism
Collectivism
Concerned with the needs of the overall society or group, rather than those of the individual Socialism, existence of welfare states
System is concerned about the needs of the entire society
No one should be left behind or treated differently
Individualism
Guarantee individual freedom and expression
People can pursue own economic self-interest
Not that there is no care for society, but they operate with a different set of assumptions
If given freedom to work hard and prosper, it will influence people to be better to get what they want
Some people are left behind
Want people to try harder: emphasis of individual
Democracy vs Totalitarianism
Cannot have these two together at once
Democracy
Government by people exercised directly or through elected representatives.
Totalitarianism
One person or party exercises control over all spheres of human life.
Opposing political parties are prohibited.
Communist: Beliefs are usually progressive in nature, they look to the future, aim to support those who cannot support themselves, are idealist and believe in equality. People who are left wing believe in taxation to redistribute opportunity and wealth - things like a national health service and job seeker’s allowance are fundamentally left wing ideas. They believe in equality over the freedom to fail.
Theocratic: A form of government in which God or a deity is recognized as the supreme civil ruler, the God's ordeity's laws being interpreted by the ecclesiastical authorities.
Tribal: A social group with territorial
BY: K R KAUSHIK, VISITING FACUTY-AIMA, NEW DELHI
The Political Economy
A country’s political economy plays a HUGE role in international business, for several reasons:
Political and economic systems differ widely across countries, making it difficult to make generalizations or have a uniform strategy.
Countries, represented by their governments, are sovereign entities.
Collectivism and Individualism
Collectivism
Concerned with the needs of the overall society or group, rather than those of the individual Socialism, existence of welfare states
System is concerned about the needs of the entire society
No one should be left behind or treated differently
Individualism
Guarantee individual freedom and expression
People can pursue own economic self-interest
Not that there is no care for society, but they operate with a different set of assumptions
If given freedom to work hard and prosper, it will influence people to be better to get what they want
Some people are left behind
Want people to try harder: emphasis of individual
Democracy vs Totalitarianism
Cannot have these two together at once
Democracy
Government by people exercised directly or through elected representatives.
Totalitarianism
One person or party exercises control over all spheres of human life.
Opposing political parties are prohibited.
Communist: Beliefs are usually progressive in nature, they look to the future, aim to support those who cannot support themselves, are idealist and believe in equality. People who are left wing believe in taxation to redistribute opportunity and wealth - things like a national health service and job seeker’s allowance are fundamentally left wing ideas. They believe in equality over the freedom to fail.
Theocratic: A form of government in which God or a deity is recognized as the supreme civil ruler, the God's ordeity's laws being interpreted by the ecclesiastical authorities.
Tribal: A social group with territorial