MAN 4602 Lecture Notes - Lecture 2: Product Liability, Mixed Economy, Planned Economy
Document Summary
Chapter 2-national differences in political, economic, and legal systems january 25, 2016. This chapter has reviewed how the political, economic, and legal systems of countries vary. The potential benefits, costs, and risks of doing business in a country are a function of its political, economic, and legal systems. Political systems can be assessed according to two dimensions: the degree to which they emphasize collectivism as opposed to individualism and the degree to which they are democratic or totalitarian. Individualism is an ideology that is built on an emphasis of the primacy of the individual"s freedoms in the political, economic, and cultural realms. a) Individualism translates into an advocacy for democratic ideals and free market economics. Democracy and totalitarianism are at different ends of the political spectrum. a) b) In a representative democracy, citizens periodically elect individuals to represent them, and political freedoms are guaranteed by a constitution.
