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4-1 Political Environment and Global Business 4-2 How Government Discourages Global Business 4-3 How Government Encourages Global Business International Business Chapter 4 Government and Global Business [P.84-111]
[object Object],[object Object],International Business Chapter 4-1 Political Environment & Global Business Goals Political Environment and Global Business
International Business A  political system  is a complete set of institutions, interest groups (such as political parties, trade unions, lobby groups), the relationships between those institutions and the political norms and rules that govern their functions (constitution, election law). Concept Chapter 4 -1 Political System Political Environment and Global Business
International Business Chapter 4-1 Political Environment and Global Business Politics = Power
HOW
Democracy (Rule by majority)
Comunism (Rule by all citizens)  Classless with common  ownership and decision making
Monarchy (Rule by monarch)  Monarchies are one of the  oldest political systems known.  Brunei.
Islamic Democracy (Rule by majority in Islamic context)  Combines aspects of Theocracy  and Democracy.
Theocracy (Rule by representative of God) Iran.
Sultanate (Rule by Allah)  Islamic political structure  combining aspects of  Monarchy and Theocracy. Oman.
Republic (Rule by law)  Czech Republic
Anarchism (Rule by all/no one) Zimbawe 2007
Westminster system  (rule by republic and representative  democracy through parliament)
[object Object],[object Object],(Rule by scientist/intellectuals) Let's play a bit
[object Object],[object Object],(Rule by scientist/intellectuals) All citizens take part in making the rules that govern them Norway - Democracy
(Rule by scientist/intellectuals) Political control is held by one person or a small group North Korea - Totalitarianism
[object Object],(Rule by scientist/intellectuals) Political control is held by one person or a small group England - Mixed Systems
Anarchy Aristocracy Confederation Communist state Demarchy Democracy Direct democracy Representative democracy Despotism Dictatorship Military dictatorship Military junta Authoritarianism Totalitarianism Autocracy Empire Fascist state Federation Feudalism Gerontocracy Empire Fascist state Federation Feudalism Gerontocracy Green state Interregnum Caretaker government Interrex Provisional government Transitional government Kleptocracy Matriarchy Meritocracy Minarchism Monarchy Enlightened absolutism Absolute monarchy Constitutional monarchy Elective monarchy Hereditary monarchy Regency Nation-state Oligarchy Parliamentary Patriarchy Plutocracy Police state Polyarchy Presidential Puppet state Republic Socialist state Collective leadership Soviet Republic Supranational union Synarchy Technocracy Thalassocracy Theocracy Theodemocracy Timocracy Tribal Chiefdom Tyranny Unitary state Welfare state
International Business Chapter 4-1 Home and host countries Explained Political Relations with Host and Home Countries ultinational
International Business Chapter 4-1 Home and host countries Explained Political Relations with Host and Home Countries ,[object Object],[object Object]
International Business Chapter 4-1 Home and host countries Explained Political Relations with Host and Home Countries ,[object Object],[object Object]
International Business Chapter 4-1 Home and host countries Explained Political Relations with Host and Home Countries ,[object Object],[object Object],The country where the company is a guest The country where the company is headquartered
THINK Which is the image a HOME country gets when the multinational misbehaves in a HOST country?
 
International Business Chapter 4-1 Political Relations with Host and Home Countries Social Responsibility Concept Is the process whereby people function as good citizen and are sensitive to their surroundings
Concious  Corporations
International Business Chapter 4-2 How Government Discourages Global Business ,[object Object],[object Object],[object Object]
International Business Chapter 4-2 Government Activities Influence Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Business Chapter 4-2 Government Activities Influence Business ,[object Object],Occupational hazards (wearing a belt, hat, earplugs) Civil rights (Non discriminating jobs) Human rights (Not employing kids) Consumer protection (list ingridients) Forced vacations Etc. This changes by country
International Business Chapter 4-2 Government Activities Influence Business ,[object Object],Some countries demand that a % of the employees got to be NATIONALS Some countries don’t allow woman to work Some countries impose severe rules. Example Venezuela and pregnant women.
International Business Chapter 4-2 Government Activities Influence Business ,[object Object],[object Object],[object Object],[object Object],[object Object]
International Business Chapter 4-2 Government Activities Influence Business Companies may feel discouraged to start business in other countries by all those rules and regulations.
The Walmart Effect
International Business Chapter 4-2 Political Risks in other countries ,[object Object],[object Object],[object Object],[object Object]
International Business Chapter 4-2 Political Risks in other countries
International Taxes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],International Business Chapter 4-2 Political Risks in other countries
[object Object],[object Object],[object Object],International Business Chapter 4-4 How Government Encourages Global Business
[object Object],[object Object],[object Object],[object Object],International Business Chapter 4-4 Encouraging International Business
Government Protection from International Risk International Business Chapter 4-4 Encouraging International Business ,[object Object],[object Object]
Tax Incentives ,[object Object],[object Object],[object Object],International Business Chapter 4-4 Encouraging International Business
Homework This is your final RESEARCH PAPER. Due on the Final Exam date.  Sucel y Jessica Elizabeth y Yeni Zuri y Jorge Jose, Kirenia y Wilder Javier y Zulema Explore economic, geographic, political, and cultural influences on assigned region Brasil Central America Caribbean Central Europe China Follow instructions on page 106
Homework This will be your final RESEARCH PAPER. Due on  Lilian y Dagoberto Gricel y Oreste Ninosca y Daikiel Juan y Yeni Omar y Belkys Johnathan e Ileana Humberto, Julio y Dyan South America Central America Caribbean Central Europe Central Asia Arab league Andean Countries Explore economic, geographic, political, and cultural influences on assigned region Follow instructions on page 106
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Ib chapter4

  • 1. 4-1 Political Environment and Global Business 4-2 How Government Discourages Global Business 4-3 How Government Encourages Global Business International Business Chapter 4 Government and Global Business [P.84-111]
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  • 3. International Business A political system is a complete set of institutions, interest groups (such as political parties, trade unions, lobby groups), the relationships between those institutions and the political norms and rules that govern their functions (constitution, election law). Concept Chapter 4 -1 Political System Political Environment and Global Business
  • 4. International Business Chapter 4-1 Political Environment and Global Business Politics = Power
  • 5. HOW
  • 6. Democracy (Rule by majority)
  • 7. Comunism (Rule by all citizens) Classless with common ownership and decision making
  • 8. Monarchy (Rule by monarch) Monarchies are one of the oldest political systems known. Brunei.
  • 9. Islamic Democracy (Rule by majority in Islamic context) Combines aspects of Theocracy and Democracy.
  • 10. Theocracy (Rule by representative of God) Iran.
  • 11. Sultanate (Rule by Allah) Islamic political structure combining aspects of Monarchy and Theocracy. Oman.
  • 12. Republic (Rule by law) Czech Republic
  • 13. Anarchism (Rule by all/no one) Zimbawe 2007
  • 14. Westminster system (rule by republic and representative democracy through parliament)
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  • 17. (Rule by scientist/intellectuals) Political control is held by one person or a small group North Korea - Totalitarianism
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  • 19. Anarchy Aristocracy Confederation Communist state Demarchy Democracy Direct democracy Representative democracy Despotism Dictatorship Military dictatorship Military junta Authoritarianism Totalitarianism Autocracy Empire Fascist state Federation Feudalism Gerontocracy Empire Fascist state Federation Feudalism Gerontocracy Green state Interregnum Caretaker government Interrex Provisional government Transitional government Kleptocracy Matriarchy Meritocracy Minarchism Monarchy Enlightened absolutism Absolute monarchy Constitutional monarchy Elective monarchy Hereditary monarchy Regency Nation-state Oligarchy Parliamentary Patriarchy Plutocracy Police state Polyarchy Presidential Puppet state Republic Socialist state Collective leadership Soviet Republic Supranational union Synarchy Technocracy Thalassocracy Theocracy Theodemocracy Timocracy Tribal Chiefdom Tyranny Unitary state Welfare state
  • 20. International Business Chapter 4-1 Home and host countries Explained Political Relations with Host and Home Countries ultinational
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  • 24. THINK Which is the image a HOME country gets when the multinational misbehaves in a HOST country?
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  • 26. International Business Chapter 4-1 Political Relations with Host and Home Countries Social Responsibility Concept Is the process whereby people function as good citizen and are sensitive to their surroundings
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  • 33. International Business Chapter 4-2 Government Activities Influence Business Companies may feel discouraged to start business in other countries by all those rules and regulations.
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  • 36. International Business Chapter 4-2 Political Risks in other countries
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  • 42. Homework This is your final RESEARCH PAPER. Due on the Final Exam date. Sucel y Jessica Elizabeth y Yeni Zuri y Jorge Jose, Kirenia y Wilder Javier y Zulema Explore economic, geographic, political, and cultural influences on assigned region Brasil Central America Caribbean Central Europe China Follow instructions on page 106
  • 43. Homework This will be your final RESEARCH PAPER. Due on Lilian y Dagoberto Gricel y Oreste Ninosca y Daikiel Juan y Yeni Omar y Belkys Johnathan e Ileana Humberto, Julio y Dyan South America Central America Caribbean Central Europe Central Asia Arab league Andean Countries Explore economic, geographic, political, and cultural influences on assigned region Follow instructions on page 106