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Chapter 2: National Differences In Political, Economic, and Legal Systems,…
Chapter 2: National Differences In Political, Economic, and Legal Systems
Legal Systems
Common / Civil / Theocratic
Contract Law (CISG)
Property Rights & Corruption
Intellectual Property (TRIPS)
Product Safety & Liability
Managerial Implications
Influence on market attractiveness
Ideal = democracy + market + property rights + low corruption
Political Systems
Collectivism → Socialism → (Communists / Social Democrats)
Individualism → Freedom & democracy
Democracy vs Totalitarianism → (4 forms)
Economic Systems
Three Main Types
Market Economic
Goods and services are determined by suppliy and demand
Government rote: encourage free and fair competition between private producers
Typical in countries where individual goals are prioritized over collective goals
condition: supply must not be restricted by monopolies
Command Economic
Mixed Economic
Command economy → Government control
Mixed economy → Blend of both