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chapter. National Differences in Political Economy. McGraw-Hill/Irwin Global Business Today, 5e. © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 2. INTRODUCTION This chapter explores how the political, economic, and legal systems of countries differ.

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  1. chapter National Differences in Political Economy McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 2

  2. INTRODUCTION This chapter explores how the political, economic, and legal systems of countries differ. Together these systems are known as the political economy of a country. Chapter 2: National Differences in Political Economy

  3. POLITICAL SYSTEMS A political system is the system of government in a nation Political systems can be assessed according to: the degree to which they emphasize collectivism as opposed to individualism the degree to which they are democratic or totalitarian Chapter 2: National Differences in Political Economy

  4. Collectivism and Individualism Democracy and Totalitarianism Chapter 2: National Differences in Political Economy

  5. ECONOMIC SYSTEMS A free market system is likely in countries where individual goals are given primacy over collective goals State-owned enterprises and restricted markets are common in countries where collective goals are dominant Chapter 2: National Differences in Political Economy

  6. Market Economy Command Economy Mixed Economy Chapter 2: National Differences in Political Economy

  7. LEGAL SYSTEMS The legalsystem of a country is the rules, or laws, that regulate behavior, along with the processes by which the laws of a country are enforced and through which redress for grievances is obtained. Chapter 2: National Differences in Political Economy

  8. Different Legal Systems Differences in Contract Law Property Rights and Corruption The Protection of Intellectual Property Product Safety and Product Liability Chapter 2: National Differences in Political Economy

  9. THE DETERMINANTS OF ECONOMIC DEVELOPMENT Differing political, economic, and legal systems can have a profound impact on the level of a country's economic development, and hence on the attractiveness of a country as a possible market and/or production location for a firm. Chapter 2: National Differences in Political Economy

  10. Differences in Economic Development Broader Conceptions of Development: Amartya Sen Political Economy and Economic Progress Geography, Education, and Economic Development Chapter 2: National Differences in Political Economy

  11. STATES IN TRANSITION Since the late 1980s, a wave of democratic revolutions has swept the world, and many of the previous totalitarian regimes collapsed There has been a move away from centrally planned and mixed economies towards free markets Chapter 2: National Differences in Political Economy

  12. STATES IN TRANSITION The Spread of Democracy The New World Order and Global Terrorism The Spread of Market-Based Systems The Nature of Economic Transformation Deregulation Privatization Legal Systems Implications of Changing Political Economy Chapter 2: National Differences in Political Economy

  13. IMPLICATIONS FOR MANAGERS Political, economic, and legal systems of a country raise important ethical issues that have implications for the practice of international business The political, economic, and legal environment of a country clearly influences the attractiveness of that country as a market and/or investment site Chapter 2: National Differences in Political Economy

  14. Benefits Costs Risks Overall Attractiveness Chapter 2: National Differences in Political Economy

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