Session 2: National Differences in Political Economy - The political economy of a nation refers to how the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being. | International Business Management Instructor: Dr. Phan Triều Anh McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Course Aims To examine the theory and practice of international business and the multinational enterprises To describe and discuss the world business environment To examine firm behaviors, strategies and operations (basic functions of international businesses) Session 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 country 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 nation Political systems can be assessed according to two dimensions the degree to which they emphasize collectivism as opposed to individualism the degree to which they are democratic or . | International Business Management Instructor: Dr. Phan Triều Anh McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Course Aims To examine the theory and practice of international business and the multinational enterprises To describe and discuss the world business environment To examine firm behaviors, strategies and operations (basic functions of international businesses) Session 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 country 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 nation Political systems can be assessed according to two dimensions the degree to which they emphasize collectivism as opposed to individualism the degree to which they are democratic or totalitarian Political systems have two dimensions: the degree of collectivism versus individualism, and the degree of democracy versus totalitarianism. These dimensions are interrelated; systems that emphasize collectivism tend towards totalitarian, while systems that place a high value on individualism tend to be democratic. However, a large gray area exists in the middle. It is possible to have democratic societies that emphasize a mix of collectivism and individualism. Similarly, it is possible to have totalitarian societies that are not collectivist. Collectivism And Individualism Collectivism refers to a political system that stresses the primacy of collective goals over individual goals Collectivism can be traced back to the Greek philosopher, Plato (427-347 BC), but in modern times, collectivism is equated with socialists Collectivism refers to a political system that stresses the primacy of collective goals over individual goals. The needs of society as a whole are generally .
