Political Aspects of International Business
POLITICAL ASPECTS OF INTERNATIONAL BUSINESS
The developed world is living in an age of globalization, characterized by
• Economic liberalization
• Deregulation
• Privatization
All of these factors create a reduced role for the state, or so it seems at least on the surface.
But the state still plays a significant role in the lives of people and businesses.
“The State Is Dead . . . . Long Live the State”
State versus Nation
Characteristics of a State:
• Resident population (as opposed to nomadic)
• Governed by a recognized authority
• Recognized by other states
• Common money and economic policies
• Other symbolic fixtures such as flags, anthems, airlines
Characteristics of a Nation:
A nation is a group of people with common cultural factors such as
• Language
• Religion
• Ethnic background
• Value system/philosophy
• Historical experiences
Nation-State
This is a case where the political boundaries co-incide with national boundaries. This makes for a strong, unified country.
Japan is the best example of a nation-state.
Nation-Building
In non-democratic states, this is an attempt to assimilate and unify people under the state’s political control by
• Education
• Common language
• Rigid political system
In democratic states, nation-building may take many different forms including (using Canada as an example)
• Building infrastructure to unite the country
• Education
• Creating a civil society
• Providing basic services – health and education – to all
• Charter of Rights for individual protection against abuse by others, including the state
• “law, order, and good government”
The purpose of nation-building is to reduce internal conflicts, in some cases internal diversity. In a multi-cultural country such as Canada, where there’s a tendency to celebrate our differences,
The developed world is living in an age of globalization, characterized by
• Economic liberalization
• Deregulation
• Privatization
All of these factors create a reduced role for the state, or so it seems at least on the surface.
But the state still plays a significant role in the lives of people and businesses.
“The State Is Dead . . . . Long Live the State”
State versus Nation
Characteristics of a State:
• Resident population (as opposed to nomadic)
• Governed by a recognized authority
• Recognized by other states
• Common money and economic policies
• Other symbolic fixtures such as flags, anthems, airlines
Characteristics of a Nation:
A nation is a group of people with common cultural factors such as
• Language
• Religion
• Ethnic background
• Value system/philosophy
• Historical experiences
Nation-State
This is a case where the political boundaries co-incide with national boundaries. This makes for a strong, unified country.
Japan is the best example of a nation-state.
Nation-Building
In non-democratic states, this is an attempt to assimilate and unify people under the state’s political control by
• Education
• Common language
• Rigid political system
In democratic states, nation-building may take many different forms including (using Canada as an example)
• Building infrastructure to unite the country
• Education
• Creating a civil society
• Providing basic services – health and education – to all
• Charter of Rights for individual protection against abuse by others, including the state
• “law, order, and good government”
The purpose of nation-building is to reduce internal conflicts, in some cases internal diversity. In a multi-cultural country such as Canada, where there’s a tendency to celebrate our differences,