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National Differences in Political Economy, Individualism, Collectivism -…
National Differences in Political Economy
Political System
Democracy
Definition
A system where people govern directly or through elected representatives.
Characteristics
Freedom of speech & organization
Free media
Universal suffrage
Limited terms
Independent institutions
Totalitarianism
Definition
Absolute control by one party/person
Forms
Communist
Theocratic
Tribal
Right-wing
Economic Systems
Market Economy
Private ownership
Supply & demand determine production
Government role: Promote competition
Command Economy
Government controls
Production
Prices
Resource allocation
Outcomes
Low efficiency
Economic stagnation
Mixed Economy
Combination of
Market forces
Government intervention
Legal System
Common Law
Precedent-based
Judge interpretation
Civil Law
Codified laws
Judge applies codes
Theocratic Law
Based on religion
Example: Islamic law
International Business Law
Contract Law
Legal agreement
Detailed contracts
International trade: CISG
Property Rights
Control over resources & income
Effects
Reduced FDI
Slower growth
Intellectual Property
Types:
Patents
Copyrights
Trademarks
Protection strategies
Avoid weak-IP countries
Legal action
International agreements
Individualism
Characteristics
Private property
Individual diversity
Leads to
Democracy
Free market economy
Core idea
Individual freedom & rights
Collectivism
Characteristics
State ownership
Central planning
Social welfare focus
Core idea
Collective goals > individual goals