The document discusses international politics and how political systems and economic ideologies impact international business. It provides examples of changing political systems in the USSR and China and describes different types of political systems like democracy, totalitarianism, and military rule. It also defines economic systems such as market-driven economies, centrally planned economies, and mixed economies. Privatization and nationalization of government assets are discussed along with reasons for each. Finally, it briefly defines economic integration across countries through transnational rules and regulations.

2. International Politics.

3. Presented by :
M.Amir Sohail
Roll # 59

4. Political System:
A political system is
basically of politics and
government in a country.
It governs a complete set of
rules regulations institutions
and attitudes.

5. Changing political
system
The political environment of countries is
critical concern for the international
marketers.
International law recognize the right of
nation to allow or deny the foreign firm to
do the business.

6. Political Factors Effecting on IB
Political and legal differences
Political and legal forces
Trade and investment Restrictions
Restraining Forces
Government policies and restrictions
Political environment.

7. Examples Of Changing
Political Systems
USSR:
The economy of USSR is moving from command economy advocated
by the communist ideology to the market driven economy.
China:
China is realizing that it must walk a fin line b/w commitment to its
current philosophy and the need to attract the outside investment. It wants
to attract foreign capital to ensure that is economic engine continues to
work efficiently.

9. A set of integrated beliefs, theories and doctrines that helps to
direct the actions of a society is called ideology.
The ideologies that help to explain
the nations economic policies are
given below
Political Systems
Economic Systems.

10. A system of government in which the people either
directly or through their elected officials decide what is to
be done.
Right to express opinions freely
Election of representatives for limited terms of office
Independent court system that protects individual
property and rights
Relatively non-political bureaucracy and defense
infrastructure.

11. A system of government in which one individual or party maintains
complete control and either refuse to recognize other parties or
suppresses them.
There are many types of totalitarianism, out of which
three main types are given below
Communism
Theocratic Totalitarianism
Secular Totalitarianism

12. A political system in which the government owns all property and makes all
decision regarding production and distribution of goods and services.
A system of governance in which a religious group exercises total
power and repress or persecutes non-orthodox factions.
A system of governance in which the military controls everything
and makes decision which it deems to be in the best interest of the
country.

13. Economic Systems
 There are three basic system, ( capitalism, socialism
and mixed).
 For the purpose of analysis we classify the system in
terms of
a) Resource Allocation (market driven v/s
centrally determined)
b) Property Ownership ( private v/s public)

14. Economic Systems
Market-Drive Economy:
An economy in which goods and
services are allocated on the basis
of consumer demand.
An economy in which goods and services are allocated
based on a plan formulated by a committee that decides
what is to be offered.

15. Economic Systems
Economic systems
characterized
by a combination
of market and
centrally driven
planning.

16. Govt. Control Of Assets
The process of selling government assets to private buyers.
Privatization:
Contract management:
A process by which and organization transfers operating
responsibility of an industry without transferring the legal title
and ownership.

17. Govt. Control Of Assets
Reasons for Privatization:
 More efficient to have the goods and services provided by private
business than by government
 Change in political culture brings about a desire to sell off these assets
 The company is making money and the govt. feels that there is more to
be gained by selling now than by holding on
 the purchase price can be used to reduce the national debt
 Company is losing money and govt. has to assume the losses out of the
national treasury
 The company needs research and development funds in order to
maintain a competitive stance
 International funding agencies are making assistance to the country
conditional on reduction in the size of govt.

18. Govt. Control Of Assets
Reasons for Nationalization:
 Promoting economics development
 Earning profits for national Treasury
 Preventing companies from going bankrupt and closing their
doors
 Enhancing programs that are in national interest
 Increasing the political or economic control of those in power
 Ensuring goods and services to all citizens regardless of their
economic status
A process by which the government takes control of business
assets, Sometimes with remuneration of the owners and other
times without such remuneration.

19. Economics Integration
Economics Integration is the establishment
transnational rules and regulation that
enhance economic and cooperation among
countries.