GMS 724 Lecture Notes - Lecture 2: Political Spectrum, Collectivism, Individualism
1 Nov 2017
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Document Summary
Chapter 2 the political and legal environments facing business. Political and legal factors influencing international business operations. Definition of a political system: the complete set of institutions, political organizations, and interest groups, the relationships among institutions, and the political norms and rules that govern their functions. Individualism: primacy of the rights and role of the individual: collectivism: primacy of the rights and role of the community. Political ideology: the system of ideas that expresses the goals, theories, and aims of a sociopolitical, most modern societies are pluralistic different groups champion competing political ideologies program. Trends in political systems: third wave of democracy, engines of democracy, the failure of totalitarian regimes to deliver economic progress, improved communications technology, economic dividends of increasing political freedom. Definition of political risk: the risk that political decisions or events in a country negatively affect the profitability or sustainability of an investment, types, systemic, procedural, distributive, catastrophic.
