CHAPTER 2
National Differences in Political
Economy
POLITICAL SYSTEM
System of Government in a Nation.
Shapes a Country’s Economic and Legal
System.
COLLECTIVISM V/S INDIVIDUALISM
Collectivism
Primacy of Collective
Goals
Advocated by
“Plato”
“Socialism”:trace
roots to ‘K...
DEMOCRACY & TOTALITARIANISM
Democracy
• Involvement of citizen in Decision Making
• Representative Democracy
• Has number ...
ECONOMIC SYSTEM
3 types of economic system:
Market
•Privatization
•Production
determined by
D & S
•Consumers r
Sovereign
C...
LEGAL SYSTEM
Rules or Laws, that regulate behavior
among with the processes by which
laws are enforced and through which
r...
CONT’D..
Theocratic
Based on Religious Teachings. Example: Islamic Law
Civil
Based on a detailed set
of laws organized int...
of 7

NATIONAL DIFF IN CULTURE CHAPTER 2 ITERNATIONAL BUSINESS 12130920-093

NATIONAL DIFF IN CULTURE CHAPTER 2 ITERNATIONAL BUSINESS 12130920-093
Published on: Mar 3, 2016
Published in: Business      
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Transcripts - NATIONAL DIFF IN CULTURE CHAPTER 2 ITERNATIONAL BUSINESS 12130920-093

  • 1. CHAPTER 2 National Differences in Political Economy
  • 2. POLITICAL SYSTEM System of Government in a Nation. Shapes a Country’s Economic and Legal System.
  • 3. COLLECTIVISM V/S INDIVIDUALISM Collectivism Primacy of Collective Goals Advocated by “Plato” “Socialism”:trace roots to ‘Karl Max’ Capitalist Society earn few benefits at expense of many Individualism Individual should have freedom in his/her political and economic pursuits Advocated by Aristotle Built on 2 central tenet
  • 4. DEMOCRACY & TOTALITARIANISM Democracy • Involvement of citizen in Decision Making • Representative Democracy • Has number of safeguards that are enshrined in constitutional law Totalitarianism • All the constitutional guarantees on which representative democracies are built • Political Repression, lack of free and fair elections, Censored Media etc.
  • 5. ECONOMIC SYSTEM 3 types of economic system: Market •Privatization •Production determined by D & S •Consumers r Sovereign Command •Good &Services, Prices , Quantity ; planned by government •Consistent with Collectivism Ideology •Government own resources •State owned Businesses Mixed • Blend of Market and Command Economy • Certain Sectors are left to Private sectors and some to state ownership • Govt tend to take into state ownership troubled firms
  • 6. LEGAL SYSTEM Rules or Laws, that regulate behavior among with the processes by which laws are enforced and through which redress for grievances are obtained.
  • 7. CONT’D.. Theocratic Based on Religious Teachings. Example: Islamic Law Civil Based on a detailed set of laws organized into codes. Less Flexibility Judge can only apply the law Common Based on Traditions, Precedent, Custom Degree of Flexibility Judge have power to interpret the Law

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