《《国际商务希尔》PPT课件.ppt》由会员分享，可在线阅读，更多相关《《国际商务希尔》PPT课件.ppt（54页珍藏版）》请在三一办公上搜索。
1、International Business 7eby Charles W.L.Hill,McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies,Inc.All rights reserved.,Chapter 2 National Differences in Political Economy,Political Systems,The political economy of a nation refers to how the political,economic,and legal systems of a coun
2、try are interdependent;they interact and influence each other,and in doing so they affect the level of economic well-being,Political Systems,Political system refers to the system of government in a nationPolitical systems can be assessed according to two dimensionsthe degree to which they emphasize
3、collectivism as opposed to individualism the degree to which they are democratic or totalitarian,Collectivism And Individualism,Collectivism refers to a political system that stresses the primacy of collective goals over individual goalsCollectivism can be traced back to the Greek philosopher,Plato(
4、427-347 BC),but in modern times,collectivism is equated with socialists,Collectivism And Individualism,Socialists advocate state ownership of the basic means of production,distribution,and exchangeState-owned enterprises are managed to benefit society as a whole,rather than individual capitalistsIn
5、the early 20th century,socialism split into:Communism socialism can only be achieved through violent revolution and totalitarian dictatorshipSocial democrats socialism is achieved through democratic means,Classroom Performance System,A political system that stresses the primacy of collective goals o
6、ver individual goals is called a)individualismb)collectivismc)a democracyd)a market economy,Collectivism And Individualism,By the mid-1990s,communism was in retreat worldwideSocial democracy is also retreating as many countries move toward free market economiesState-owned enterprises have been priva
7、tized,Classroom Performance System,_ believe(s)that socialism can only be achieved through violent revolution and totalitarian dictatorship.a)communistsb)social democratsc)social republicansd)Plato,Collectivism And Individualism,Individualism refers to philosophy that an individual should have freed
8、om in his own economic and political pursuitsIndividualism can be traced to Greek philosopher,Aristotle(384-322 BC),who argued that individual diversity and private ownership are desirable Under individualism,individual economic and political freedoms are the ground rules on which a society should b
9、e based More practically,individualism means democratic political systems and free market economies,Democracy And Totalitarianism,Democracy refers to a political system in which government is by the people,exercised either directly or through elected representativesTotalitarianism is a form of gover
10、nment in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political partiesDemocracy is usually associated with individualism and communism is usually associated with collectivism and totalitarianism,Democracy And Totalitarianism,Pu
11、re democracy is based on the belief that citizens should be directly involved in decision makingMost modern democratic states practice representative democracy where citizens periodically elect individuals to represent them,Classroom Performance System,A form of government in which one person or pol
12、itical party exercises complete control over all spheres of human life and prohibits opposing political parties is a)a democracyb)a representative democracyc)totalitarianismd)socialism,Democracy And Totalitarianism,There are four major forms of totalitarianism:Communist totalitarianism found in stat
13、es where the communist party monopolizes powerTheocratic totalitarianism-found in states where political power is monopolized by a party,group,or individual that governs according to religious principlesTribal totalitarianism-found in states where a political party that represents the interests of a
14、 particular tribe monopolizes powerRight-wing totalitarianism-permits some individual economic freedom,but restricts individual political freedom,Classroom Performance System,_ is found in states where political power is monopolized by a party according to religious principles.a)tribal totalitariani
15、smb)right-wing totalitarianismc)theocratic totalitarianismd)communist totalitarianism,Economic Systems,Political ideology and economic systems are connectedIn countries where individual goals are emphasized free market economies are likelyThere are three types of economic systems:market economiescom
16、mand economiesmixed economies,Market Economy,In a market economy all productive activities are privately owned and production is determined by the interaction of supply and demand The role of government is to encourage free and fair competition between private producers,Command Economy,In a command
17、economy,the government plans the goods and services that a country produces,the quantity that is produced,and the prices as which they are soldAll businesses are state-owned,and governments allocate resources for“the good of society”However,because there is little incentive to control costs and be e
18、fficient,command economies tend to stagnate,Mixed Economy,In a mixed economy,certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planningGovernments tend to own firms that are considered important
19、 to national security,Classroom Performance System,In which type of economic system are all productive activities privately owned?a)a mixed economyb)a command economyc)a representative economyd)a market economy,Legal Systems,The legal system of a country refers to the rules that regulate behavior al
20、ong with the processes by which the laws are enforced and through which redress for grievances is obtainedThere are three types of legal systems:Common law-based on tradition,precedent,and customCivic law-based on detailed set of laws organized into codesTheocratic law-law is based on religious teac
21、hings,Classroom Performance System,Which type of law is based on tradition,precedent,and custom?a)civil lawb)common lawc)theocratic lawd)contract law,Differences In Contract Law,Depending on the legal system,contracts are approached in different ways A contract is a document that specifies the condi
22、tions under which an exchange is to occur and details the rights and obligations of the parties involvedContract law is the body of law that governs contract enforcement,Differences In Contract Law,Under a common law system,contracts tend to be very detailed with all contingencies spelled outUnder a
23、 civil law system,contracts tend to be much shorter and less specific because many issues are already covered in the civil code,Differences In Contract Law,Many countries have ratified the United Nations Convention on Contracts for the International Sale of Goods(CIGS)which establishes a uniform set
24、 of rules governing certain aspects of the making and performance of everyday commercial contracts between buyers and sellers who have their places of business in different nations,Property Rights And Corruption,Property rights refer to the legal rights over the use to which a resource is put and ov
25、er the use made of any income that may be derived from that resourceCountries differ in terms of how their legal systems define and protect property rightsProperty rights can be violated through:private actionpublic action,Property Rights And Corruption,Public action and private action to violate pr
26、operty rights occurs when public officials extort income,resources,or the property itself from property holders This can be done legally through mechanisms like excessive taxation or illegally through corrupt mechanisms like demanding bribes or blackmailing High levels of corruption reduce foreign d
27、irect investment,the level of international trade,and the economic growth rate in a country,Property Rights And Corruption,Figure 2.1:Rankings of Corruption by Country 2006,Property Rights And Corruption,The Foreign Corrupt Practices Act makes it illegal for U.S.companies to bribe foreign government
28、 officials to obtain or maintain business over which that foreign official has authorityThe OECD has also adopted a convention that obliges member states to make the bribery of foreign public officials a criminal offense,Classroom Performance System,Which country is not among the most corrupt countr
29、ies in the world?a)Haitib)Indonesiac)Malaysiad)Nigeria,The Protection Of Intellectual Property Rights,Intellectual property refers to property that is the product of intellectual activityIntellectual property can be protected using:Patents exclusive rights for a defined period to the manufacture,use
30、,or sale of that inventionCopyrights the exclusive legal rights of authors,composers,playwrights,artists,and publishers to publish and disperse their work as they see fitTrademarks design and names by which merchants or manufacturers designate and differentiate their products,The Protection Of Intel
31、lectual Property Rights,Protection of intellectual property rights differs from country to country when intellectual property protection is lax,piracy is common Many countries are members of the World Intellectual Property Organization and have signed international treaties to protect intellectual p
32、roperty including the Paris Convention for the Protection of Industrial PropertyTo avoid piracy,firms can stay away from countries where intellectual property laws are lax,file lawsuits,and lobby governments for international property rights agreements and enforcement,Classroom Performance System,De
33、sign and names by which merchants or manufacturers designate and differentiate their products are calleda)trademarksb)copyrightsc)patentsd)name brands,Product Safety And Product Liability,Property safety laws set certain standards to which a product must adhereProduct liability involves holding a fi
34、rm and its officers responsible when a product causes injury,death,or damage When product safety laws are stricter in a firms home country than in a foreign country,or when liability laws are more lax,the firm has to decide whether to adhere to home country or host country standards,The Determinants
35、 Of Economic Development,Countries have different levels of economic developmentGross national income(GNI)per person is a common measure of economic development Purchasing power parity(PPP)involves adjusting GNI by purchasing power,Differences In Economic Development,Table 2.1:Economic Data for Sele
36、ct Countries,Broader Conceptions Of Development:Amartya Sen,Nobel Prize winning economist Amartya Sen argues that development should be seen as a process of expanding the real freedoms that people experience So,development requires the removal of major impediments to freedom like poverty,tyranny,and
37、 neglect of public facilitiesSen emphasizes basic health care and basic educationThe United Nations used Sens ideas to develop the Human Development Index(HDI)which is based on three measures:life expectancy at birth,educational attainment,and whether average incomes are sufficient to meet the basic
38、 needs of life in a country,Political Economy And Economic Progress,What is the relationship between political economy and economic progress?Experts agree that:Innovation and entrepreneurship are the engines of long-run economic growthInnovation and entrepreneurship require a market economyInnovatio
39、n and entrepreneurship require strong property rightsIt seems likely that democratic regimes are more conducive to long-term economic growth than a dictatorship,even one of the benevolent kindSubsequent economic growth leads to establishment of democratic regimes,Geography,Education,And Economic Dev
40、elopment,In addition to political and economic systems,geography and education are also important determinants of economic developmentCountries with favorable geography are more likely to engage in trade,and so,be more open to market-based economic systems,and the economic growth they promoteCountri
41、es that invest in education have higher growth rates because the workforce is more productive,Classroom Performance System,Which is not a primary determinant of a nations rate of economic development?a)its political systemb)its economic systemc)its geographyd)its currency,States In Transition,Since
42、the late 1980s,two trends have emerged in the political economy:A wave of democratic revolutions swept the world in the late 1980s and early 1990sThere has been a move away from centrally planned and mixed economies and toward a more free market economic model,The Spread Of Democracy,There are three
43、 main reasons for the spread of democracy:Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populationsNew information and communication technologies,have broken down the ability of the state to control access to uncensored informationThe economic advances of th
44、e past quarter century have led to the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms,The Spread Of Democracy,Map 2.5:Political Freedom in 2006,The New World Order And Global Terrorism,Many countries may be increasingly difficult places in whic
45、h to do business,either because of their inherent violent conflict,or because they are part of a civilization that is in conflict with an enterprises home countryTerrorism represents one of the major threats to world peace and economic progress in the 21st century,The Spread Of Market-Based Systems,
46、Command and mixed-economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systemsAs a result,more countries have shifted toward the market-based model,The Spread Of Market-Based Systems,Map 2.6:Distribution of Economic Freedom in 20
47、07,The Nature Of Economic Transformation,The shift toward a market-based system involves:Deregulation removing legal restrictions to the free play of markets,the establishment of private enterprises,and the manner in which private enterprises operate Privatization-transfers the ownership of state pr
48、operty into the hands of private investorsThe creation of a legal system to safeguard property rights,Implications Of Changing Economy,Markets that were formerly off-limits to Western business are now openChina with its 1.2 billion people and India with its population of almost 1 billion are especia
49、lly importantHowever,just as the potential gains are large,so are the risksDemocracy may not thrive in some countries,Implications Of Changing Political Economy,Figure 2.3:The Worlds Largest National Economies,2005-2025(GDP$billions),Implications For Managers,There are two broad implications for man
50、agers:the political,economic,and legal systems of a country raise important ethical issues that have implications for the practice of international businessthe political,economic,and legal environment of a country clearly influences the attractiveness of that country as a market and/or investment si
