The document discusses several key aspects of national differences in political, legal, and cultural systems. It describes how political systems can vary in their emphasis on collectivism versus individualism and democracy versus totalitarianism. It also outlines major legal systems such as common law, civil law, and theocratic law. Additionally, it examines the various determinants that shape culture, including social structure, religion, education, language, and work motivation.

1. NATIONAL DIFFERENCE IN
POLITICAL
R.Gnanaraj B.Com., (CA), MBA

2. Political System:
• A Political System is a system of politics and
government.
• It is usually compared to the law system, economic
system, cultural system, and other social systems.
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3. Political systems can be assessed
• In terms of the degree to which they emphasize
collectivism as opposed to individualism.
• In terms of the degree to which they are democratic or
totalitarian.
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4. Collectivism:
• Collectivism refers to a system that stresses the primacy
of collective goals over individual goals.
• When collectivism emphasized, the needs of society as a
whole are generally viewed as being more important than
individual freedom.
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5. Individualism:
• Individualism is the opposite of collectivism.
• Individualism is a political philosophy that suggests
individuals should have freedom over their economic and
political pursuits.
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6. Democracy:
• Who believed that all citizens are politically and legally
equal, and hence were entitled to freedom of thought,
opinion, belief, speech, and association.
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7. Totalitarianism:
• Totalitarianism means one person or political party
exercises absolute control.
o Communist totalitarianism
o Theocratic totalitarianism
o Tribal totalitarianism
o Right-wing totalitarianism
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8. NATIONAL DIFFERENCE
IN LEGAL
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9. Legal System:
• Today we live in global economy where we use goods
manufactured in one country and packaged in another
country.
• Businesses have cross boundaries of countries and
expanded themselves across the world, in search of
availability of raw materials, cheap labor, talent and
market for their goods.
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10. • Doing business internationally is totally different than in
home country.
• Business people have to well aware of country's culture,
people’ behavior, country’s legal system, its political
environment and economical conditions.
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11. Major Legal System:
 Common law
 Civil law
 Theocratic law
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12. Common Law:
• Developed in England in the 11th century – UK, Ireland,
USA (except Louisiana), Canada (except Quebec),
Australia, India, Hong Kong.
• The common law is more flexible than statutory law.
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13. • Common law courts are not absolutely bound by
precedent, but can reinterpret and revise the law, without
legislative intervention, to adapt to new trends in
political, legal and social philosophy.
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14. Civil Law:
• It is a legal system inspired by Roman law.
• It is also known as Code law.
• Code law is based on an all inclusive system of written
rules of law. Under code law, the legal system is generally
divided into three separate codes: Commercial law, Civil
and Criminal.
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15. Theocratic law
• This system is based on religious teachings, as they are
enshrined in the religious scriptures.
• Islamic law, Sharia, is the most widely practiced religious
legal system in todays world.
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16. Mixed legal systems
• Mixed legal systems are mostly defined as the
Combination of civil law and common law.
• Examples - South Africa, Louisiana, Israel.
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17. Indian legal system
• A unique feature of the India Constitution is the judicial
system.
• A single integrated systems of courts administers both
union and state laws.
• The Supreme Court of India, seated in New Delhi, is the
highest body in the entire judicial system.
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18. NATIONAL DIFFERENCE
IN CULTURE
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19. What is Culture?
• Culture is a system of values (abstract ideas about what a
group believes to be good, right, and desirable) and
norms (the social rules and guidelines that prescribe
appropriate behavior in particular situations) that are
shared among a group of people and that when taken
together constitute a design for living.
• A society is a group of people who share a common set of
values and norms.
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20. The Determinants of Culture
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Culture
Norms
and
Value
System
Work
Motivation
Religion
Social
Structure
Education &
Language
Public Policy
& Laws
Individual &
Groups

21. Social Structure
• A society's social structure is its basic social organization.
Two dimensions to consider:
• The degree to which the basic unit of social organization
is the individual, as opposed to the group.
• The degree to which a society is stratified into classes or
castes.
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22. Religious and Ethical Systems
• Religion is a system of shared beliefs and rituals that are
concerned with the realm of the sacred.
• Ethical system refer to a set of moral principles, or
values, that are used to guide and shape behavior.
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23. • Religions with the greatest following are
o Christianity (1.7 billion adherents)
o Islam (1 billion adherents)
o Hinduism (750 million adherents)
o Buddhism (350 million adherents)
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24. Individuals and Groups
• A group is an association of two or more individuals who
have a shared sense of identity and who interact with each
other in structured ways on the basis of a common set of
expectations about each other’s behavior.
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25. • In societies where the individual is emphasized
• individual achievement and entrepreneurship are
promoted.
• but, this can encourage job switching, competition
between individuals in a company rather than team
building, and a lack of loyalty to the firm.
• In societies with a strong identification with the group
• cooperation and team work are encouraged and life
time employment is common.
• but, individual initiative and creativity may be
suppressed.
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26. Public Policy and Legal Framework
• Government Policies and legal systems of different
countries also reflected the culture values of the country.
These legal and policy frameworks influence business
practices in two ways:
• They determine the board framework for doing business in a
country, and
• They Influence and circumscribe management practices within
the company.
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27. Education
• Formal education is the medium through which individuals
learn many of the language, conceptual, and mathematical
skills that are indispensable in a modern society.
• The knowledge base, training, and educational opportunities
available to a country's citizens can also give it a competitive
advantage in the market and make it a more or less attractive
place for expanding business.
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28. Language
• Countries differ in terms of language or means of
communication.
• There are two forms language
• Spoken
• Unspoken
• Language is one of the defining characteristics of
culture.
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29. Spoken Language
• Countries with more than one spoken language
often have more than one culture.
• Chinese is the mother tongue of the largest number of
people in the world.
• English is the most widely spoken language in the world,
and is becoming the language of international business.
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30. Unspoken Language
• Unspoken language refers to nonverbal cues.
• Unspoken language such as facial expressions and hand
gestures can be important for communication.
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31. Work Motivation
• Employees who are motivated to work long hard are
generally more productive than those who are not. On an
aggregate basis, this will have a positive effect on
economic development and national competitiveness.
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32. Thank You
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