National Differences in Political Economy

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  • 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
    • 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

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