MGCR 382 Lecture Notes - Lecture 6: Mercantilism, Comparative Advantage, Absolute Advantage

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: John Saba

Document Summary

Mid-term exam covers chapter 1,2,3 and 6 (page 148-159 only) Chapter 3 legal, technological, accounting and political environments (cont. ) Objective 1 - describe the major types of legal systems confronting international businesses (cont. ) Bureaucratic law is the legal system followed by communist countries and dictatorships. It is whatever the country s bureaucrats say it is, regardless of the formal law of the land. Bureaucratic law is frequently inconsistent, unpredictable, and lacking in appeal procedures. Today: china and a few states in africa. Contracts can be made or broken at the whim of those in power. The 1997 collapse of zaire s dictatorship caused a mad scramble to validate contracts made during the prior government and negotiate new contracts with the replacement government. Most of these systems are based on civil law, with elements of socialist principles that emphasize: Tends toward loose treatment of property and intellectual property rights.