Professional Documents
Culture Documents
Political Ideologies
Totalitarianism
Pluralism
Anarchism
Both private and public groups need to balance each others power Every aspect of peoples lives must be controlled to preserve order Only individuals and private groups can preserve personal liberties
International Business 4e
Chapter 3 - 2
Democracy
Government leaders are elected by the wide participation of the people or their representatives
Freedom of expression Periodic elections Full civil and property rights Minority rights Nonpolitical bureaucracies
Prentice Hall, 2008 International Business 4e Chapter 3 - 3
Totalitarianism
Leaders govern without peoples support Government controls much of peoples lives Leaders do not tolerate opposing viewpoints
Imposed authority
Restricted participation
Chapter 3 - 4
Forms of Totalitarianism
Theocratic totalitarianism
(totalitarian religious leadership)
Secular totalitarianism
(military and bureaucratic leadership)
Arises from:
Peoples resentment toward government Territorial disputes between nations Ethnic, racial, or religious disputes
International Business 4e
Chapter 3 - 7
International Business 4e
Chapter 3 - 8
Property Seizure
Confiscation
Forced transfer of assets from a company to the government without compensation
Expropriation
Forced transfer of assets from a company to the government with compensation
Nationalization
Forced asset transfer to the government of an entire industry
International Business 4e
Chapter 3 - 9
International Business 4e
Chapter 3 - 10
Adaptation
Incorporate risk into business strategies
International Business 4e
Chapter 3 - 11
Information gathering
Gather data to better predict and manage risk
International Business 4e
Chapter 3 - 12
Lobbying
Influencing local lawmakers
Corruption
Foreign Corrupt Practices Act
International Business 4e
Chapter 3 - 13
Civil Law
Codified rules and statutes
Theocratic Law
Religious teachings form law
Prentice Hall, 2008 International Business 4e Chapter 3 - 14
Trademark
Words or symbols that distinguish a product and its manufacturer ("Coca-Cola")
Copyright
Freedom of creator to publish or dispose of original works as they choose ("Happy Birthday to You")
Prentice Hall, 2008 International Business 4e Chapter 3 - 15
International Business 4e
Chapter 3 - 16
Ethical Behavior
Personal behavior in accordance with rules or standards for right conduct or morality
Enron Tyco Worldcom Parmalat (Italy)
Ethical relativism When in Rome, do as the Romans Ethical absolutism Import ethics from home
International Business 4e
Chapter 3 - 17
Social Responsibility
Go beyond legal obligations to balance commitments to investors, customers, communities, and other companies
Respect consumers rights Guard workers rights Protect the environment Preserve employment Encourage development Improve health Support education
International Business 4e Chapter 3 - 18
International Relations
Favorable international political relations foster:
Stable business environments Improved business communications Efficient distribution systems Prompt and equitable dispute resolution Expanded opportunities Diminished risk levels
Prentice Hall, 2008 International Business 4e Chapter 3 - 19