IB 3101 Lecture Notes - Lecture 2: Social Stratification, Ethnocentrism, Class Consciousness
3 Apr 2016
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Chapter 2&3: national differences in political economy & development. A country"s political, economic, and legal systems. These systems are interdependent, and interact and influence each other. A country"s political system has major implications for the practice of international business. Consumers determine what to produce and how much. Businesses are publicly traded or privately owned. Gov"t encourages free and fair competition between producers. More likely in individualist countries with democratic rule. Elements of both market and command economic systems. Some government ownership of firms (i. e: utilities) Many services are not provided in markets (i. e: postal service, water, power, public transportation, ect. ) Most economies are mixed to a greater or lesser degree. More likely in collectivist countries with totalitarian rule. Civil v common law not so important. Important: weather or not laws are inforced. Does a firm have legal recourse if: Many countries have poor protection of intellectual property and don"t respect legal ownership rights.
