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POLITICAL SYSTEMS

POLITICAL SYSTEMS. DEMOCRACY TOTALITARIANISM. DEMOCRACY. Presidential Form Parliamentary System Various Combinations. Basic Political Ideologies. Democracy Democratic systems involve wide participation by citizens in the decision-making process

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POLITICAL SYSTEMS

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  1. POLITICAL SYSTEMS • DEMOCRACY • TOTALITARIANISM

  2. DEMOCRACY • Presidential Form • Parliamentary System • Various Combinations

  3. Basic Political Ideologies • Democracy • Democratic systems involve wide participation by citizens in the decision-making process • In representative democracy, majority rule is achieved through periodic elections • Factors for evaluating freedom are • Political rights • Civil liberties • Political rights include • Fair and competitive elections • Power for elected representatives • Ability to organize • Safeguards on rights of minorities

  4. TOTALITARIANISM • SECULAR • THEOCRATIC

  5. Basic Political Ideologies • Totalitarianism • In a totalitarian system, decision making is restricted to a few individuals • Theocratic totalitarianism is the form prevalent in Muslim countries. With secular totalitarianism, control is often enforced through military power • Communism is a form of secular totalitarianism that relates political and economic systems

  6. The Impact of the Political System on Management Decisions • There is a dichotomy between governmental control and consumer control of the political system and the economy • Managers need to understand the critical functions that a government performs in the economy • The political process affects international business through regulation of cross-border transactions

  7. Secular Totalitarianism • Fascism • Authoritarianism • Communism

  8. POLITICAL RISK • Changes in the Political Climate that might adversely affect business operations

  9. CAUSES of POLITICAL RISK • Opinions of Political Leadership • Civil Disorder • External Relations

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