National Differences in Political Economy
- Created by: Helen
- Created on: 20-04-13 11:56
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- National Differences in Political Economy
- Countries have different political and legal frameworks and different appraoches to economic management
- Countries vary significantly in their level of economic development and future economic growth trajectory
- These have a profound impact on the benefits, costs and risks associated with international business
- Cultural practices can vary dramatically, as can the education and skill level of the population
- Countries have different political and legal frameworks and different appraoches to economic management
- These have a profound impact on the benefits, costs and risks associated with international business
- Cultural practices can vary dramatically, as can the education and skill level of the population
- A political economy of a nation is how the political, economic and legal system of a country are interdependent
- The interact and influence eachother
- they effect the level of economic well-being in the nation
- Political Systems can be assessed according to:
- The degree to which a country emphasizes collectivism as opposed to individualism
- Countries that stress individual goals are likely to have market based economies where price is determined by demand and supply
- Country where state-ownership is common, collective goals are dominant and price is determined by government
- Political ideology and economic systems are connected
- The degree to which the country is democratic or totalitarian
- Political Systems can also influence the legal system
- Collectivists inclined totalitarian states tend to enact laws that restrict private enterprises
- In democratic states where individualism is dominant laws enacted by government tend to be pro-private enterprise and pro-consumer
- Political Systems can also influence the legal system
- The degree to which a country emphasizes collectivism as opposed to individualism
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