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National diff in Political, Economic & Legal systems & culture…

- - - - emphasize
        
        Collectivism: focus on COLLECTIVE over INDI goals
        
        = Socialists
        
        promote STATE ownership for basic means of production, distribution & exchange
        
        want benefit society as WHOLE
        
        Socialism: can be achieved through
        
        communism: VIOLENT revolution & DICTATORSHIP(stopped)
        
        Social democrats: DEMOCRATIC means
        
        state-owned enterprises PRIVATIZED
        
        less common: countries moving to FREE market economies
        
        Individualism: belief that indi should have FREEDOM in following P & E
        
        believe society should be based on INDI P & E freedoms
        
        support DEMOCRATIC P systems & FREE market economies
      - is
        
        Democratic/democracy
        
        P system: govt is elected by people DIRECTLY/through representatives
        
        norm: related to individualism
        
        Pure democracy: believe citizen should be DIRECTLY involved in dec making
        
        Now: practice REPRESENTATIVE democracy
        
        Totalitarian/totalitarism
        
        a form of govt where 1 person/political party have ABSOLUTE control over ALL areas of human life & dont allow opposing parties
        
        4 types
        
        communist: party MONOPOLISE power
        
        Theocratic: party/group/indi governs according to RELIGIOUS principles MONOPOLISE P party
        
        Tribal: P party represent a particular tribe's INTERESTS monopolise power
        
        Right-wing: allow some indi E freedom but control P freedom
- - - - Market:
        
        all productive activities are PRIVATELY owned
        
        production determined by D & S
        
        govt encourage FREE & FAIR competition between PRIVATE producers
      - Command:
        
        production planned by govt: qty, prices
        
        all biz are STATE-OWNED & govt allocate resources for 'the good for society'
        
        LITTLE incentive to control costs & be efficient: tend to DECLINE
      - Mixed:
        
        Some economy sectors PRIVATE ownership & FREE market mechanisms
        
        other sectors: have significant state ownership & govt planning (own firms that are considered impt to NATIONAL SECURITY)
  - - - gross national income(GNI) per person
      - purchasing power parity (PPP)
        
        involve adjusting GNI by purchasing power
        
        Amartya: think that E development should be seen as process of EXPANDING real freedoms that peep experience
        
        presence of BASIC health care & edu.
        
        remove major barrier to freedom: poverty, neglect of PUBLIC faci.
        
        UN use idea to develop human development index(HDI) based on
        
        life expectancy at birth
        
        educational attainment
        
        whether average income are enough to meet BASIC needs of life
  - - - democratic revolution cause : many totalitarian govt cant deliver E progress & new tech(↓ govt ability to control info)
      - move away from CENTRALLY planned & MIXED economies to MARKET-based model involves
        
        deregulation: remove L restrictions to
        
        FREE play of markets
        
        establishing PRIVATE biz
        
        private biz OPERATIONS
        
        Privatization: transfer state ownership to private investors
        
        create L system to protect property rights
    - - OFF LIMIT markets are now OPEN to foreign biz
      - can get 1st mover ad but HIGH risk
      - Risk to be considered:
        
        P: chances that P forces causing MAJOR changes in biz envt that will have BAD impact on profit & goals
        
        E: chances that E mismgmt wll cause MAJOR changes in biz envt that have BAD impact on profits & goals
        
        L: chances that a trading PARTNER will break contract/take over property rights
      - determine market's overall attractiveness:
        
        balance related BENEFITS, COSTS & RISKS
        
        other things being equal: benefit-cost-risk trade off is most prob best in P stable country that have FREE market systems & NO MAJOR raises in INFLATION rate/private sector DEBT
    - - country w favourable geography: most prob involve in trade & open to MARKET-based economic systems & growth
      - countries invest in edu. = ↑ productivity = ↑ growth rate