This document provides an overview of an international business class. It will cover the drivers and institutions of international business, problems companies may face, opportunities available, and financial and management issues of global business. Specific chapters will address political, cultural, and ethical differences between countries; international trade, policies, and investment; managing global strategies, organizations, and operations; and financial topics like foreign exchange and accounting practices. The goal is for students to understand the landscape of international business.
This document appears to be lecture slides for a course on management of international business. It covers several topics:
- An introductory travel exercise to discuss issues to consider when planning an international trip and how it relates to international business.
- A discussion of cases like Google exiting China and the BP oil spill to talk about important issues companies face when doing business internationally.
- An overview of concepts like globalization, the globalization of markets and production, and how global institutions have helped manage the global economy.
- A comparison of different political and economic systems around the world and how they affect a country's attractiveness for foreign investment.
- A discussion of other factors like intellectual property rights,
The document discusses neoliberalism and its rise globally following World War 2. It establishes that the Bretton Woods institutions like the IMF and World Bank, as well as the GATT and later WTO, were created to spread and enforce neoliberal policies that promoted deregulation, privatization, and free trade. While claiming to support freedom and growth, these institutions in practice amplified the power of wealthy states and corporations and undermined developing nations. The document also analyzes how neoliberal policies negatively impacted agriculture, industry, and social services in the Philippine context.
This document provides an overview of key concepts related to globalization including:
1. It defines globalization as the shift toward a more integrated and interdependent world economy, with two facets being the globalization of markets and the globalization of production.
2. It discusses the emergence of global institutions like the WTO, IMF, World Bank, and UN that help manage and regulate the global marketplace.
3. The main drivers of globalization are identified as the decline in trade and investment barriers since WWII and technological changes that have reduced communication and transportation costs.
4. There have been significant changes in the global economic landscape over the past 50 years including rising economic output in developing countries and a shift in
This document provides an overview of topics related to international business, including:
- The political economy and legal systems of different countries and how they impact business. Three main legal systems are described: common law, civil law, and theocratic law.
- Factors of economic development according to economist Amartya Sen, including life expectancy, education, and income.
- Transition economies that have moved from centrally planned to market-based systems.
- A case study on Japan's economic stagnation since the 1980s and questions for discussion around the causes and potential solutions.
- Announcements about group allocations and topics to be covered in future weeks of an international business course.
World trade has significant implications for multinational enterprises (MNEs) and smaller companies. It provides opportunities for market expansion but also political, economic, and cultural challenges. MNEs must consider factors like local product regulations, profit regulations, cultural differences, and economic conditions when operating in foreign countries. Smaller companies also face these challenges when engaging in world trade and must strategically consider issues like local infrastructure and taxation policies. Cultural differences especially impact how MNEs structure relationships between headquarters and subsidiaries.
The document provides an overview of chapters 1-4 of a textbook on business in today's global environment. It discusses key topics around globalization including the globalization of markets and production. It also examines the role of global institutions and how technological changes and declining trade barriers are driving globalization. Additionally, it outlines how globalization is impacting firms and analyzes debates around the effects of globalization on jobs, regulations, and inequality. National differences in political and economic systems across countries are also reviewed.
Slides_01.ppt Globalization by Charles W. HillChilumbaBwalya2
This document provides an overview of key concepts related to globalization. It defines globalization as the shift toward a more integrated and interdependent world economy. Key aspects discussed include the globalization of markets and production, the role of global institutions in regulating trade and finance, and factors driving globalization like declining trade barriers and technological advances. Both opportunities and challenges of globalization for firms and societies are addressed.
International trade allows countries to specialize and gain from exporting goods they produce cheaply while importing goods from other countries that produce them cheaply. There are direct benefits like increased income and indirect benefits like technology transfer. However, international trade can also negatively impact poorer countries if it prices out their domestic industries or leads to deterioration in their terms of trade. Trade agreements and economic integration aim to liberalize trade but have both costs and benefits that are debated. Governments use policies like tariffs and quotas to protect domestic industries from foreign competition and further other goals. Regional economic integration involves countries reducing barriers to create free trade areas, customs unions, common markets or unions with deeper coordination of economic policies.
This document appears to be lecture slides for a course on management of international business. It covers several topics:
- An introductory travel exercise to discuss issues to consider when planning an international trip and how it relates to international business.
- A discussion of cases like Google exiting China and the BP oil spill to talk about important issues companies face when doing business internationally.
- An overview of concepts like globalization, the globalization of markets and production, and how global institutions have helped manage the global economy.
- A comparison of different political and economic systems around the world and how they affect a country's attractiveness for foreign investment.
- A discussion of other factors like intellectual property rights,
The document discusses neoliberalism and its rise globally following World War 2. It establishes that the Bretton Woods institutions like the IMF and World Bank, as well as the GATT and later WTO, were created to spread and enforce neoliberal policies that promoted deregulation, privatization, and free trade. While claiming to support freedom and growth, these institutions in practice amplified the power of wealthy states and corporations and undermined developing nations. The document also analyzes how neoliberal policies negatively impacted agriculture, industry, and social services in the Philippine context.
This document provides an overview of key concepts related to globalization including:
1. It defines globalization as the shift toward a more integrated and interdependent world economy, with two facets being the globalization of markets and the globalization of production.
2. It discusses the emergence of global institutions like the WTO, IMF, World Bank, and UN that help manage and regulate the global marketplace.
3. The main drivers of globalization are identified as the decline in trade and investment barriers since WWII and technological changes that have reduced communication and transportation costs.
4. There have been significant changes in the global economic landscape over the past 50 years including rising economic output in developing countries and a shift in
This document provides an overview of topics related to international business, including:
- The political economy and legal systems of different countries and how they impact business. Three main legal systems are described: common law, civil law, and theocratic law.
- Factors of economic development according to economist Amartya Sen, including life expectancy, education, and income.
- Transition economies that have moved from centrally planned to market-based systems.
- A case study on Japan's economic stagnation since the 1980s and questions for discussion around the causes and potential solutions.
- Announcements about group allocations and topics to be covered in future weeks of an international business course.
World trade has significant implications for multinational enterprises (MNEs) and smaller companies. It provides opportunities for market expansion but also political, economic, and cultural challenges. MNEs must consider factors like local product regulations, profit regulations, cultural differences, and economic conditions when operating in foreign countries. Smaller companies also face these challenges when engaging in world trade and must strategically consider issues like local infrastructure and taxation policies. Cultural differences especially impact how MNEs structure relationships between headquarters and subsidiaries.
The document provides an overview of chapters 1-4 of a textbook on business in today's global environment. It discusses key topics around globalization including the globalization of markets and production. It also examines the role of global institutions and how technological changes and declining trade barriers are driving globalization. Additionally, it outlines how globalization is impacting firms and analyzes debates around the effects of globalization on jobs, regulations, and inequality. National differences in political and economic systems across countries are also reviewed.
Slides_01.ppt Globalization by Charles W. HillChilumbaBwalya2
This document provides an overview of key concepts related to globalization. It defines globalization as the shift toward a more integrated and interdependent world economy. Key aspects discussed include the globalization of markets and production, the role of global institutions in regulating trade and finance, and factors driving globalization like declining trade barriers and technological advances. Both opportunities and challenges of globalization for firms and societies are addressed.
International trade allows countries to specialize and gain from exporting goods they produce cheaply while importing goods from other countries that produce them cheaply. There are direct benefits like increased income and indirect benefits like technology transfer. However, international trade can also negatively impact poorer countries if it prices out their domestic industries or leads to deterioration in their terms of trade. Trade agreements and economic integration aim to liberalize trade but have both costs and benefits that are debated. Governments use policies like tariffs and quotas to protect domestic industries from foreign competition and further other goals. Regional economic integration involves countries reducing barriers to create free trade areas, customs unions, common markets or unions with deeper coordination of economic policies.
Global Trends_PPT_ Chapter 3.pptx aau 2024workinehamanu
This document provides an overview of international political economy (IPE). It discusses key debates around the role of the state in domestic and international economic governance. At the international level, it examines how trade, investment and finance should be governed and the role of institutions like the IMF, World Bank and WTO. It then covers the main theoretical perspectives in IPE - mercantilism/nationalism, liberalism and Marxism. The document also analyzes influential national political economy systems like the US and Japanese models before examining core issues in IPE like international trade, investment and finance and their governing institutions.
what is globalization
,
globalization of markets
,
globalization of production
,
global institutions
,
drivers of globalization
,
managing in the global marketplace
,
the changing demographics of the global economy
,
changing world output & world trade picture
,
globalization & the world’s poor
,
global economy of 21st century
,
the changing world order
,
globalization
,
labor policies and the environment
In this presentation, we will discuss about International Economics and will focus on various aspects that influence import and export trading, MNCs operational structure etc. We will also discuss about International trade and financial scenario.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Globalization has both benefits and costs for economic growth. It allows for greater specialization and trade between countries, improving productivity and GDP. However, it can also increase inequality as lower-skilled workers face more competition. While globalization has helped reduce poverty in some nations, it has also caused economic hardship for domestic industries unable to compete with imports. Overall, whether a country benefits depends on how well it adapts its infrastructure and workforce to the new global economic system.
The document provides an overview of the key concepts covered in International Economics. It discusses how (1) increasing globalization and economic interdependence between countries is indicated by rising trade volumes, capital flows, and multinational companies. (2) International Economics analyzes theories of comparative advantage and trade, effects of trade policies, and monetary aspects like foreign exchange rates and balance of payments. (3) The scope includes studying how independent national economies interact through international trade and finance to allocate resources, and factors like gains from trade, patterns of trade, and approaches to managing economic relations.
The Global
Economic
Environment
1
Interesting The Guardian story about Italy that combines Culture (population) + Political (govt business subsidies) + Economic environments
https://www.theguardian.com/world/2019/sep/11/underpopulated-italian-region-molise
Global Economic Environment
1 of 2
International Trade Theory
firms expanding internationally must appreciate how their international activities match with a country’s goals for international trade
Balance of Payments
a leading indicator of the international economic health of a country and may directly influence a firm’s expansion decisions https://tradingeconomics.com/united-states/balance-of-trade
Government Policy and Trade
firms are directly impacted by government policies in areas such as tariffs and non-tariff barriers
3
Global Economic Environment
2 of 2
Institutions in the World Economy
institutions such as the World Trade Organization and the World Bank greatly influence trade policies, and ultimately can influence a firm’s global strategy
Regional Economic Integration
firms generally benefit from economic integration through lower costs of doing business. However it can also lead to stronger competitors
4
International Trade Theory
Why do nations trade?
Key international trade theories:
Absolute Advantage and Comparative Advantage
Product Life Cycle – Trade patterns and production over time
5
Comparative Advantage
“Different countries have dissimilar prices and costs on goods because different goods require a different mix of factors in their production and because countries differ in their supply of these factors.” (Ohlin)
e.g., Can you grow salmon in Texas?
6
Product Life Cycle
Four Phases of the Product Life Cycle:
Phase 1: the U.S. exports the product
Phase 2: foreign production starts
Phase 3: foreign production becomes competitive in export markets
Phase 4: import competition begins
The Product Life Cycle may not explain trade and production patterns as well anymore due to:
Short gap between phases
“Born globals” may skip some phases
7
Product Life Cycle
1 of 3
Developed Nation (strong economy)
Produces more than consumes at the beginning, then a switch
8
Product Life Cycle
2 of 3
Emerging Nation
Consumes more than produces at the beginning, then a switch
9
The Consumer PLC
Extending a Product in Other Markets
Balance of Payments 1 of 2
The Balance of Payments (BOP) is a summary of a country's economic transactions w/the world, for a specified period of time.
Current Account
Goods (Merchandise)
Services
Unilateral Transfers
http://www.bea.gov/newsreleases/glance.htm
http://tse.export.gov/TSE/
https://economictimes.indiatimes.com/markets/forex/indian-rupee-hits-an-all-time-low-of-72-69-versus-us-dollar/videoshow/65769296.cms
11
U.S. Imports
vs. Exports
https://tradingeconomics.com/united-states/balance-of-trade
Financial considerations
Reflects a country’s solvency/economic health
Steady loss of foreign exch.
A Theoretical Framework (Modelling) for International Business ManagementYasmin AbdelAziz
The international framework with all the institutions and organisations
that determine country’s economic and support policy in emergent situations.
2. Impact of globalisation on international and national policy and activities. 3. The
national framework, which fairly complicated because there are many active players:
a) National economic policy: understanding it and the environment for trade
activities. b) National economic structure and competiveness of the domestic
companies. c) International management capacities. d) Local or regional environment
and conditions for the companies. e) Focus on the world market conditions and their
development
The document discusses different forms of state intervention in market systems and their impact on society. It provides examples of fiscal policy, monetary policy, regulation, and nationalization used by states to influence economic conditions. It also examines the advantages and disadvantages of market systems and debates around balancing state intervention with free markets. Figures and tables are presented analyzing the relationship between different political economies and outcomes like physical well-being, education, and safety. The conclusion discusses finding the right balance between states and markets.
FINANCE AND LABOR PERSPECTIVES ONRISK, INEQUALITY, AND DEMO.docxericn8
FINANCE AND LABOR: PERSPECTIVES ON
RISK, INEQUALITY, AND DEMOCRACY
Sanford M. Jacobyt
We live in an era of financial development. Since 1980, capital
markets have expanded around the world; capital shuttles the globe
instantaneously. Shareholder concerns drive executive decision
making and compensation, while the fluctuations of stock markets are
a source of public anxiety. So are the financial scandals that have
regularly occurred since 1980: junk bonds in the late 1980s;
accounting and stock options in the early 2000s; and debt
securitization today.
We also live in an era of rising income inequality and
employment risk. The gaps between top and bottom incomes and
between top and middle incomes have widened since 1980. Greater
risk takes various forms, such as wage and employment volatility and
the shift from employers to employees of responsibility for
occupational pensions.
There is an enormous literature on financial development as
there is on inequality and risk. But relatively few studies consider the
intersection of these phenomena. Standard explanations for rising
inequality--skill-biased technological change and trade--explain only
30% of the variation in aggregate inequality. What else matters? We
argue here that an omitted factor is financial development.1 This
study explores the relationship between financial markets and labor
markets along three dimensions: contemporary, historical, and
comparative. For the world's industrialized nations, we find that
financial development waxes and wanes in line with top income
t Howard Noble Professor of Management, Public Policy, & History, UCLA. Thanks to
J.R. DeShazo, Stanley Engerman, Steve Foresti, Dana Frank, Mark Garmaise, Teresa
Ghilarducci, John Logan, James Livingston, Adair Morse, David Montgomery, Paul Osterman,
Grace Palladino, Peter Rappoport, Hugh Rockoff, Dani Rodrik, Emmanuel Saez, Richard
Sylla, Ryan Utsumi, Fred Whittlesey, Robert Zieger, and various interviewees. The usual
disclaimer applies. I am grateful for support from the Price Center at the UCLA Anderson
School and from the Institute for Technology, Enterprise, and Competitiveness at Doshisha
University. This paper is dedicated to Lloyd Ulman: scholar, teacher, mensch.
1. IMF, WORLD ECONOMIC OUTLOOK: GLOBALIZATION AND INEQUALITY 48
(Washington, D.C. 2007).
17
COMP. LABOR LAW & POL'Y JOURNAL
shares. Since 1980, however, there have been national divergences
between financial development--defined here as the economic
prominence of equity and credit markets-and inequality. In the
United States and United Kingdom, there remains a strong positive
correlation but in other parts of Europe and in Japan the relationship
is weaker.
What accounts for swings in financial development and inequality
and the relationship between them? Economic growth is one factor.
Another is the politics of finance. The model presented here is simple
but consistent with the evidence: Upswings in financial development
are related to politi.
Meeting 1 team b globalization presentationgcmnoteborn
This document provides an overview of topics related to globalization and international management. It discusses how globalization has impacted different world regions and sectors of society. Multi-national corporations are looking to less developed countries for opportunities to expand. Regions like Asia, Eastern Europe, South America, and Africa are of high interest due to their continued economic growth potential. The document also examines economic integration through trade agreements and foreign direct investment trends that show China and India projected to become the largest economies by 2050 due to their high growth rates.
Meeting 2 team B globalization presentationgcmnoteborn
This document provides an overview of topics related to globalization and international management. It discusses how globalization has impacted different world regions and sectors of society. Multi-national corporations are looking to less developed countries for opportunities to expand. Regions like Asia, Eastern Europe, South America, and Africa are of high interest due to their continued economic growth potential. The document also examines economic integration through trade agreements and foreign direct investment trends that show China and India projected to become the largest economies by 2050 due to their high growth rates.
This document discusses international trade and trade policies. It defines exports and imports, noting that exports are goods and services sold abroad while imports are goods brought into a country. The document outlines pros and cons of international trade, such as increased income but also increased external debt. It then discusses different trade policies governments use, including free trade policies with no restrictions as well as protectionist policies that impose controls. Protectionism aims to shield domestic producers from foreign competition and protect public goods. Reasons for protectionism include imbalanced trade relations between raw material and industrialized countries.
This document discusses different types of economic systems including centrally planned economies, mixed economies, and market economies. It describes the decline of centrally planned economies due to their failure to create economic value, provide incentives, achieve rapid growth, and satisfy customer needs. Mixed economies have moved toward privatization. Market economies rely on supply and demand and private ownership. The document also covers measuring a nation's development, classifying countries, economic transition processes, and obstacles to transition such as lack of expertise, shortage of capital, cultural differences, and environmental issues.
This document provides solutions to end-of-chapter questions and problems from the textbook "Multinational Finance" by Kirt C. Butler. It is organized by chapter and provides answers to conceptual questions about topics like foreign exchange risk, political risk, and cultural differences in international business. It also works through numerical problems involving calculations with foreign exchange rates, forward rates, and currency conversions. The solutions are intended to help students check their understanding of key concepts and practice applying quantitative techniques in multinational finance.
This document discusses culture, politics, and law as they relate to international business. It begins by defining culture and its main elements, and how culture affects business dealings in different countries. It then explores the roles of political systems and laws, explaining how democracy, totalitarianism, and other factors shape the business environment. The document also covers managing political risk, different legal systems, and key global legal and ethical issues international businesses may face.
This document provides solutions to end-of-chapter questions and problems from the textbook "Multinational Finance" by Kirt C. Butler. It addresses conceptual questions about international finance topics such as foreign exchange risk, political risk, cultural differences, and goals of financial management for multinational corporations. The solutions also discuss trade pacts, trends in exports, and classifications of economies. Key events in international monetary systems like the Bretton Woods agreement and currency crises are summarized.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
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Similar to Session 1 Globalization and Differences of Political and Economic Systems Among Countries.pdf
Global Trends_PPT_ Chapter 3.pptx aau 2024workinehamanu
This document provides an overview of international political economy (IPE). It discusses key debates around the role of the state in domestic and international economic governance. At the international level, it examines how trade, investment and finance should be governed and the role of institutions like the IMF, World Bank and WTO. It then covers the main theoretical perspectives in IPE - mercantilism/nationalism, liberalism and Marxism. The document also analyzes influential national political economy systems like the US and Japanese models before examining core issues in IPE like international trade, investment and finance and their governing institutions.
what is globalization
,
globalization of markets
,
globalization of production
,
global institutions
,
drivers of globalization
,
managing in the global marketplace
,
the changing demographics of the global economy
,
changing world output & world trade picture
,
globalization & the world’s poor
,
global economy of 21st century
,
the changing world order
,
globalization
,
labor policies and the environment
In this presentation, we will discuss about International Economics and will focus on various aspects that influence import and export trading, MNCs operational structure etc. We will also discuss about International trade and financial scenario.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Globalization has both benefits and costs for economic growth. It allows for greater specialization and trade between countries, improving productivity and GDP. However, it can also increase inequality as lower-skilled workers face more competition. While globalization has helped reduce poverty in some nations, it has also caused economic hardship for domestic industries unable to compete with imports. Overall, whether a country benefits depends on how well it adapts its infrastructure and workforce to the new global economic system.
The document provides an overview of the key concepts covered in International Economics. It discusses how (1) increasing globalization and economic interdependence between countries is indicated by rising trade volumes, capital flows, and multinational companies. (2) International Economics analyzes theories of comparative advantage and trade, effects of trade policies, and monetary aspects like foreign exchange rates and balance of payments. (3) The scope includes studying how independent national economies interact through international trade and finance to allocate resources, and factors like gains from trade, patterns of trade, and approaches to managing economic relations.
The Global
Economic
Environment
1
Interesting The Guardian story about Italy that combines Culture (population) + Political (govt business subsidies) + Economic environments
https://www.theguardian.com/world/2019/sep/11/underpopulated-italian-region-molise
Global Economic Environment
1 of 2
International Trade Theory
firms expanding internationally must appreciate how their international activities match with a country’s goals for international trade
Balance of Payments
a leading indicator of the international economic health of a country and may directly influence a firm’s expansion decisions https://tradingeconomics.com/united-states/balance-of-trade
Government Policy and Trade
firms are directly impacted by government policies in areas such as tariffs and non-tariff barriers
3
Global Economic Environment
2 of 2
Institutions in the World Economy
institutions such as the World Trade Organization and the World Bank greatly influence trade policies, and ultimately can influence a firm’s global strategy
Regional Economic Integration
firms generally benefit from economic integration through lower costs of doing business. However it can also lead to stronger competitors
4
International Trade Theory
Why do nations trade?
Key international trade theories:
Absolute Advantage and Comparative Advantage
Product Life Cycle – Trade patterns and production over time
5
Comparative Advantage
“Different countries have dissimilar prices and costs on goods because different goods require a different mix of factors in their production and because countries differ in their supply of these factors.” (Ohlin)
e.g., Can you grow salmon in Texas?
6
Product Life Cycle
Four Phases of the Product Life Cycle:
Phase 1: the U.S. exports the product
Phase 2: foreign production starts
Phase 3: foreign production becomes competitive in export markets
Phase 4: import competition begins
The Product Life Cycle may not explain trade and production patterns as well anymore due to:
Short gap between phases
“Born globals” may skip some phases
7
Product Life Cycle
1 of 3
Developed Nation (strong economy)
Produces more than consumes at the beginning, then a switch
8
Product Life Cycle
2 of 3
Emerging Nation
Consumes more than produces at the beginning, then a switch
9
The Consumer PLC
Extending a Product in Other Markets
Balance of Payments 1 of 2
The Balance of Payments (BOP) is a summary of a country's economic transactions w/the world, for a specified period of time.
Current Account
Goods (Merchandise)
Services
Unilateral Transfers
http://www.bea.gov/newsreleases/glance.htm
http://tse.export.gov/TSE/
https://economictimes.indiatimes.com/markets/forex/indian-rupee-hits-an-all-time-low-of-72-69-versus-us-dollar/videoshow/65769296.cms
11
U.S. Imports
vs. Exports
https://tradingeconomics.com/united-states/balance-of-trade
Financial considerations
Reflects a country’s solvency/economic health
Steady loss of foreign exch.
A Theoretical Framework (Modelling) for International Business ManagementYasmin AbdelAziz
The international framework with all the institutions and organisations
that determine country’s economic and support policy in emergent situations.
2. Impact of globalisation on international and national policy and activities. 3. The
national framework, which fairly complicated because there are many active players:
a) National economic policy: understanding it and the environment for trade
activities. b) National economic structure and competiveness of the domestic
companies. c) International management capacities. d) Local or regional environment
and conditions for the companies. e) Focus on the world market conditions and their
development
The document discusses different forms of state intervention in market systems and their impact on society. It provides examples of fiscal policy, monetary policy, regulation, and nationalization used by states to influence economic conditions. It also examines the advantages and disadvantages of market systems and debates around balancing state intervention with free markets. Figures and tables are presented analyzing the relationship between different political economies and outcomes like physical well-being, education, and safety. The conclusion discusses finding the right balance between states and markets.
FINANCE AND LABOR PERSPECTIVES ONRISK, INEQUALITY, AND DEMO.docxericn8
FINANCE AND LABOR: PERSPECTIVES ON
RISK, INEQUALITY, AND DEMOCRACY
Sanford M. Jacobyt
We live in an era of financial development. Since 1980, capital
markets have expanded around the world; capital shuttles the globe
instantaneously. Shareholder concerns drive executive decision
making and compensation, while the fluctuations of stock markets are
a source of public anxiety. So are the financial scandals that have
regularly occurred since 1980: junk bonds in the late 1980s;
accounting and stock options in the early 2000s; and debt
securitization today.
We also live in an era of rising income inequality and
employment risk. The gaps between top and bottom incomes and
between top and middle incomes have widened since 1980. Greater
risk takes various forms, such as wage and employment volatility and
the shift from employers to employees of responsibility for
occupational pensions.
There is an enormous literature on financial development as
there is on inequality and risk. But relatively few studies consider the
intersection of these phenomena. Standard explanations for rising
inequality--skill-biased technological change and trade--explain only
30% of the variation in aggregate inequality. What else matters? We
argue here that an omitted factor is financial development.1 This
study explores the relationship between financial markets and labor
markets along three dimensions: contemporary, historical, and
comparative. For the world's industrialized nations, we find that
financial development waxes and wanes in line with top income
t Howard Noble Professor of Management, Public Policy, & History, UCLA. Thanks to
J.R. DeShazo, Stanley Engerman, Steve Foresti, Dana Frank, Mark Garmaise, Teresa
Ghilarducci, John Logan, James Livingston, Adair Morse, David Montgomery, Paul Osterman,
Grace Palladino, Peter Rappoport, Hugh Rockoff, Dani Rodrik, Emmanuel Saez, Richard
Sylla, Ryan Utsumi, Fred Whittlesey, Robert Zieger, and various interviewees. The usual
disclaimer applies. I am grateful for support from the Price Center at the UCLA Anderson
School and from the Institute for Technology, Enterprise, and Competitiveness at Doshisha
University. This paper is dedicated to Lloyd Ulman: scholar, teacher, mensch.
1. IMF, WORLD ECONOMIC OUTLOOK: GLOBALIZATION AND INEQUALITY 48
(Washington, D.C. 2007).
17
COMP. LABOR LAW & POL'Y JOURNAL
shares. Since 1980, however, there have been national divergences
between financial development--defined here as the economic
prominence of equity and credit markets-and inequality. In the
United States and United Kingdom, there remains a strong positive
correlation but in other parts of Europe and in Japan the relationship
is weaker.
What accounts for swings in financial development and inequality
and the relationship between them? Economic growth is one factor.
Another is the politics of finance. The model presented here is simple
but consistent with the evidence: Upswings in financial development
are related to politi.
Meeting 1 team b globalization presentationgcmnoteborn
This document provides an overview of topics related to globalization and international management. It discusses how globalization has impacted different world regions and sectors of society. Multi-national corporations are looking to less developed countries for opportunities to expand. Regions like Asia, Eastern Europe, South America, and Africa are of high interest due to their continued economic growth potential. The document also examines economic integration through trade agreements and foreign direct investment trends that show China and India projected to become the largest economies by 2050 due to their high growth rates.
Meeting 2 team B globalization presentationgcmnoteborn
This document provides an overview of topics related to globalization and international management. It discusses how globalization has impacted different world regions and sectors of society. Multi-national corporations are looking to less developed countries for opportunities to expand. Regions like Asia, Eastern Europe, South America, and Africa are of high interest due to their continued economic growth potential. The document also examines economic integration through trade agreements and foreign direct investment trends that show China and India projected to become the largest economies by 2050 due to their high growth rates.
This document discusses international trade and trade policies. It defines exports and imports, noting that exports are goods and services sold abroad while imports are goods brought into a country. The document outlines pros and cons of international trade, such as increased income but also increased external debt. It then discusses different trade policies governments use, including free trade policies with no restrictions as well as protectionist policies that impose controls. Protectionism aims to shield domestic producers from foreign competition and protect public goods. Reasons for protectionism include imbalanced trade relations between raw material and industrialized countries.
This document discusses different types of economic systems including centrally planned economies, mixed economies, and market economies. It describes the decline of centrally planned economies due to their failure to create economic value, provide incentives, achieve rapid growth, and satisfy customer needs. Mixed economies have moved toward privatization. Market economies rely on supply and demand and private ownership. The document also covers measuring a nation's development, classifying countries, economic transition processes, and obstacles to transition such as lack of expertise, shortage of capital, cultural differences, and environmental issues.
This document provides solutions to end-of-chapter questions and problems from the textbook "Multinational Finance" by Kirt C. Butler. It is organized by chapter and provides answers to conceptual questions about topics like foreign exchange risk, political risk, and cultural differences in international business. It also works through numerical problems involving calculations with foreign exchange rates, forward rates, and currency conversions. The solutions are intended to help students check their understanding of key concepts and practice applying quantitative techniques in multinational finance.
This document discusses culture, politics, and law as they relate to international business. It begins by defining culture and its main elements, and how culture affects business dealings in different countries. It then explores the roles of political systems and laws, explaining how democracy, totalitarianism, and other factors shape the business environment. The document also covers managing political risk, different legal systems, and key global legal and ethical issues international businesses may face.
This document provides solutions to end-of-chapter questions and problems from the textbook "Multinational Finance" by Kirt C. Butler. It addresses conceptual questions about international finance topics such as foreign exchange risk, political risk, cultural differences, and goals of financial management for multinational corporations. The solutions also discuss trade pacts, trends in exports, and classifications of economies. Key events in international monetary systems like the Bretton Woods agreement and currency crises are summarized.
Similar to Session 1 Globalization and Differences of Political and Economic Systems Among Countries.pdf (18)
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
2. 2
International Business
What will you get from this class?
GET TO KNOW THE DRIVER
OF INTERNATIONAL
BUSINESS AND SUPPORTING
INSTITUTIONS
(CH 1)
PROBLEM FACED
(CH 2,3,4)
OPPORTUNITIES
(CH 5,6,7)
ISSUES (PARTICULARLY
FINANCE) TO CONSIDER
WHILE DOING BUSINESS
INTERNATIONALLY
(CH 8-11, 19, 20)
MANAGING GLOBAL
BUSINESS (STRATEGY,
ORGANIZATION, HRM,
OPERATION,
MARKETING, ETC
(CH 12-18)
3. Unique opportunities:
International Trade (Chapter 5)
International Trade Policies (Chapter 6)
Foreign Direct Investment (Chapter 7)
Managing Global Businesss:
Strategy
Organization
Entry Strategies and Strategic Alliance
Export – Import
Outsourcing and Logistics (Operation Management)
Global Marketing
Expat Managers (HRM)
Unique Problems Faced:
Politics (Chapter 2),
Culture (Chapter 3),
Ethics (Chapter 4)
Financial Issues to consider while doing business
internationally:
Regional Economic Integration (Chapter 8)
Foreign Exchange (Chapter 9)
Monetary System (Ch. 10)
Global Capital Markets (Ch 11)
Difference in accounting practices (Ch. 19)
Globalization of financial management (Ch. 20)
Able to describe the drivers of international business
and its supporting institutions, detect problem faced,
opportunities available, financial issues need to
considered in global business, and how to manage
global firm.
Get to know the driver of
international business and
supporting institutions (Chapter 1)
6. 6
International Business
New Global Business Realities
The world
flatten
1
Companies got
internationalized
2
Trade
agreements
3
Rapid and
extensive global
communication
4
Rapid
development and
transfer of
technologies
5
And so on..
6
The rapid growth and spread of these drivers led to
GLOBALIZATION
Chapter 1 : Introduction
Chapter 1 : Introduction
8. 8
International Business
Globalization of Markets
• Falling trade barriers make it easier to
sell globally
• Consumers’ tastes and preferences are
converging on some global norm
• Firms promote the trend by offering
the same basic products worldwide
01
Globalization of Production
• Lower overall cost structure
• Improve the quality or functionality of
their product offering
02
Globalization Common Types
Chapter 1 : Introduction
9. 9
International Business
International Organizations
Why do we need international
organization?
Help manage, regulate, and
police the global marketplace.
Promote the establishment of
multinational treaties to govern the
global business system.
Chapter 1 : Introduction
10. IMF
WTO
• Maintains order in the
international
monetary system
• Polices the world
trading system
• Makes sure that nation-
states adhere to the
rules laid down in trade
treaties
• Promotes lower barriers
to trade and investment
What do International
Organizations do?
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10
International Business
Chapter 1 : Introduction
11. UN
World Bank • Maintains international
peace and security
• Develops friendly
relations among nations
• Cooperates in solving
international problems
and in promoting
respect for human rights
• Is a center for
harmonizing the actions
of nations
• Promotes economic
development
What do International
Organizations do?
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11
International Business
Chapter 1 : Introduction
13. 13
International Business
%
Share of
Total FDI Stock
in 2018
Source: https://www.gfmag.com/topics/macroeconomy-and-globalization/countries-
most-fdi-inflows-2018
Chapter 1 : Introduction
14. 14
International Business
The financial crisis that swept through
South East Asia in the late 1990s
Globalizations Risks
The recent financial crisis that started in the U.S. in
2008, and moved around the world
Debates on Globalization
Chapter 1 : Introduction
15. International Business
15
Lower prices for goods and services
Greater economic growth
Higher consumer income, and more jobs
Job losses
Environmental degradation
the cultural imperialism of global media and MNEs
Debates on Globalization
SUPPORT
CRITICS
Debates on Globalization
Chapter 1 : Introduction
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International Business
Chapter 1 : Introduction
16. 16
International Business
Environment
• Free trade encourages firms from
advanced nations to move
manufacturing facilities offshore to
less developed countries with lax
environmental and labor regulations.
• Carbon dioxide emissions which
appear to rise along with income
levels
Rich-poor gap
• The gap between
rich and poor are
widen
Globalization
vs
National Sovereignty
• The worry that economic
power is shifting away from
national governments and
towards supranational
organizations like the WTO and
the European Union, or EU.
Chapter 1 : Introduction
18. 18
International Business
Implication for Managers
Managing an international business, or any firm that engages
in international trade or investment, will be different from
managing a domestic business for several key reasons.
Countries
differ.
Greater and more complex
problems
Government
intervention in
markets creates
limitations.
Deal with exchange
rate changes
Chapter 1 : Introduction
20. 20
• This chapter focuses on
how the political,
economic, and legal
systems of countries
differ.
• Collectively, we refer to
these system as
constituting the political
economy of a country
INTRODUCTION
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International Business
Chapter 2 : National Differences in Political Economy
21. 21
International Business
What Is A Political Economy?
The political economy of a nation
refers to how the political, economic,
and legal systems of a country are
interdependent
• they interact and influence each other
• they affect the level of economic well-
being in the nation
Chapter 2 : National Differences in Political Economy
22. 22
International Business
What Is A
Political
System? Democratic
or
Totalitarian?
emphasizes
collectivism
as opposed to individualism
Assessed according to
“The system of
government in a nation”
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International Business
Chapter 2 : National Differences in Political Economy
23. 23
International Business
What Is
Collectivism?
Collectivism stresses the
primacy of collective goals
over individual goals
Today, collectivism is
equated with socialists (Karl
Marx 1818-1883)
advocate state ownership of
the basic means of production,
distribution, and exchange
Chapter 2 : National Differences in Political Economy
Photo: Karl Marx
24. 24
International Business
How Does
Modern-Day
Look?
COMMUNISM SOCIAL DEMOCRATS
can only be achieved through
violent revolution and
totalitarian dictatorship.
state-owned
enterprises have been
privatized
Chapter 2 : National Differences in Political Economy
25. 25
International Business
What Is
Individualism?
Individualism
refers to philosophy that an individual should
have freedom in his own economic and political
pursuits
• can be traced to Greek philosopher, Aristotle (384-
322 BC), who argued that individual diversity and
private ownership are desirable
• individual economic and political freedoms are the
ground rules on which a society should be based
• implies democratic political systems and free market
economies
International Business
Chapter 2 : National Differences in Political Economy
25
26. 26
International Business
Individualism
citizens should
be directly
involved in
decision making
Representative
democracy
Citizens periodically
elect individuals to
represent them
What Is
Democracy?
a political system in which government is
by the people, exercised either directly or
through elected representatives.
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26
International Business
Chapter 2 : National Differences in Political Economy
27. 27
International Business
What Is
Totalitarianism?
Totalitarianism is a form of government in
which one person or political party exercises
absolute control over all spheres of human
life and prohibits opposing political parties
Communist totalitarianism
Theocratic totalitarianism
Tribal totalitarianism
Right-Wing totalitarianism
Chapter 2 : National Differences in Political Economy
28. 28
International Business
MARKET
ECONOMIES
COMMAND
ECONOMIES
MIXED
ECONOMIES
• Privately owned
• Production
determined by supply
and demand
• Free and fair
competition between
private producers
• Production quantity and
prices determined by
government
• State-owned
• “The good of society”
• Stagnate
• Governments tend to
own firms that are
considered important to
national security
• Certain sectors of the
economy are left to
private ownership
WHAT IS AN ECONOMIC
SYSTEM?
Chapter 2 : National Differences in Political Economy
29. 29
International Business
02
03
Common law - based on tradition, precedent, and custom
Civic law - based on detailed set of laws organized into codes
Theocratic law - law is based on religious teachings
01
LEGAL SYSTEM
The legal system of a country refers
to the rules that regulate behavior
along with the processes by which
the laws are enforced and through
which redress for grievances is
obtained
Chapter 2 : National Differences in Political Economy
30. 30
International Business
How Are Contracts Enforced
In Different Legal Systems?
• Contract law is the body of law that governs contract enforcement
• Under a common law system, contracts tend to be very detailed
with all contingencies spelled out
• Under a civil law system, contracts tend to be much shorter and less
specific because many issues are already covered in the civil code
• Many countries have ratified the United Nations Convention on
Contracts for the International Sale of Goods (CIGS) which
establishes a uniform set of rules governing certain aspects of the
making and performance of everyday commercial contracts
between buyers and sellers who have their places of business in
different nations
2-30
A contract is a document that specifies
the conditions under which an exchange
is to occur and details the rights and
obligations of the parties involved
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30
International Business
Chapter 2 : National Differences in Political Economy
31. 31
International Business
Property
Rights
And
Corruption
Property rights refer to the legal rights over the use to which
a resource is put and over the use made of any income that
may be derived from that resource
Can be violated through
1. Private action – theft, piracy, blackmail
2. Public action - legally - ex. excessive taxation or
illegally - ex. bribes or blackmailing
• high levels of corruption reduce foreign direct
investment, the level of international trade, and
the economic growth rate in a country
The Foreign Corrupt Practices Act makes it illegal for U.S.
companies to bribe foreign government officials to obtain or
maintain business over which that foreign official has authority
2-31
International Business
Chapter 2 : National Differences in Political Economy
31
33. 33
International Business
02
03
Patents – exclusive rightsfor a defined period to the manufacture, use, or
saleof that invention
Copyrights– the exclusive legal rights of authors, composers, playwrights,
artists, and publishersto publish and disperse their work as they see fit
Trademarks– design and names by which merchants or manufacturers
designate and differentiate their products
01
INTELLECTUAL
PROPERTY
Property that is the product
of intellectual activity.
Can be protected using:
Chapter 2 : National Differences in Political Economy
34. 34
International Business
Intellectual Property Protection
Protection of intellectual property rights differs from country to country
Paris Convention for
the Protection of
Industrial Property
2-34
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34
International Business
Chapter 2 : National Differences in Political Economy
35. 35
International Business
How Can
Intellectual
Property Be
Protected?
To avoid piracy, firms can:
Stay away from
countries where
intellectual
property laws are
lax
1
File
lawsuits.
2
Lobby
governments for
international
property rights
agreements and
enforcement.
3
2-35
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35
International Business
Chapter 2 : National Differences in Political Economy
36. 36
International Business
Product Safety And Liability
• Product safety laws set certain standards to which a product
must adhere
• Product liability involves holding a firm and its officers
responsible when a product causes injury, death, or damage
• When product safety laws are stricter in a firm’s home country
than in a foreign country, or when liability laws are more lax,
the firm has to decide whether to adhere to home country or
host country standards
Chapter 2 : National Differences in Political Economy
37. 37
International Business
Determinants of a Country’s Level
Of Economic Development
Two ways to measure levels of economic development are
GNI
PPP
• Nobel-prize winner Amartya Sen argues
economic development should be seen
as a process of expanding the real
freedoms that people experience
• the removal of major impediments to
freedom like poverty, tyranny, and neglect
of public facilities
• the presence of basic health care and basic
education
Chapter 2 : National Differences in Political Economy
38. 38
International Business
Determinants of a Country’s Level
Of Economic Development
The United Nations used Amartya Sen’s ideas to develop the Human
Development Index (HDI) which is based on:
life expectancy at birth
educational attainment
whether average incomes are sufficient to meet the basic needs of life in a country
02
03
01
Chapter 2 : National Differences in Political Economy
40. 40
International Business
Political Economy and Economic Progress
Innovation and
entrepreneurship
are the engines of
long-run economic
growth
1
Innovation and
entrepreneurship
require a market
economy and
strong property
rights
2
Democratic regimes
are probably more
conducive to long-
term economic
growth than
dictatorships, even
the benevolent kind
3
Subsequent
economic growth
leads to the
establishment of
democratic regimes
4
Chapter 2 : National Differences in Political Economy
41. 41
International Business
Geography, Education and Economic
Development
Countries with favorable geography are more likely
to engage in trade, and so, be more open to
market-based economic systems, and the economic
growth they promote
Countries that invest in education have higher growth
rates because the workforce is more productive
2-41
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International Business
Chapter 2 : National Differences in Political Economy
42. 42
International Business
The Changing Political Economy
Since the late 1980s, two trends have emerged:
02
Democraticrevolution (late 1980s and early 1990s)
A move away from centrally planned and mixedeconomies
01
• More countries have shifted toward the market-based model
• Many totalitarian regimes failed to deliver economic progress to the vast bulk of their
populations
• New information and communication technologies have broken down the ability of the
state to control access to uncensored information
• Economic advances of the last 25 years have led to increasingly prosperous middle and
working classes who have pushed for democratic reforms
Chapter 2 : National Differences in Political Economy
45. 45
International Business
The Nature Of
Economic Transformation
The shift toward a market-based system involves
Deregulation Privatization
Removing legal
restrictions to the free
play of markets, the
establishment of
private enterprises,
and the manner in
which private
enterprises operate.
Transfers the ownership
of state property into
the hands of private
investors.
Legal System
The creation of a legal
system to safeguard
property rights
Chapter 2 : National Differences in Political Economy
46. 46
International Business
What Does The Changing
Economy Mean For Managers?
• Markets that were formerly off-limits
to Western business are now open
• By identifying and investing early in a
potential future economic stars, firms
may be able to gain first mover
advantages and establish loyalty and
experience in a country
• ex. China -1.2 billion people and
India – 1.1 billion people
• Potential risks are large
• It can be more costly to do
business in countries with
dramatically different product,
workplace, and pollution
standards, or where there is poor
legal protection for property rights
Chapter 2 : National Differences in Political Economy
47. 47
International Business
What Does The Changing
Economy Mean For Managers?
Political risk - the likelihood that political forces will cause
drastic changes in a country's business environment that
adversely affects the profit and other goals of a business
enterprise
Economic risk - the likelihood that economic mismanagement
will cause drastic changes in a country's business environment
that adversely affects the profit and other goals of a business
enterprise
Legal risk - the likelihood that a trading partner will
opportunistically break a contract or expropriate property rights
Chapter 2 : National Differences in Political Economy
48. 48
International Business
How Can Managers Determine A Market’s
Overall Attractiveness?
The overall attractiveness of a
country as a potential market
and/or investment site for an
international business depends on
balancing the benefits, costs, and
risks associated with doing
business in that country
Other things being equal, the
benefit-cost-risk trade-off is likely
to be most favorable in politically
stable developed and developing
nations that have free market
systems and no dramatic upsurge
in either inflation rates or private
sector debt
Chapter 2 : National Differences in Political Economy
49. Read the
Article
• The new political divide
• How the West got China wrong
• Video: How does China’s government
works
02
01
2-49
11/13/2018 49
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International Business
Chapter 2 : National Differences in Political Economy
50. Quiz
Please check your
understanding by answering the
chapter’s quiz.
2-50
11/13/2018 50
50
International Business
Chapter 2 : National Differences in Political Economy
51. 51
International Business
Source
Chapter 1
• Hill, Charles W.L, Wee, Chow-Hou & Udayasankar, Krishna. International Business: An Asian Perspective.
• https://amp.economist.com/leaders/2016/07/30/the-new-political-divide#top
• https://www.youtube.com/watch?v=xPD477FuqtY&t=45s
Chapter 2
• Hill, Charles W.L, Wee, Chow-Hou & Udayasankar, Krishna. International Business: An Asian Perspective.
• https://www.economist.com/graphic-detail/2018/02/22/corruption-is-still-rife-around-the-world
• https://www.economist.com/leaders/2018/03/01/how-the-west-got-china-wrong
• https://www.youtube.com/watch?v=fgor9fmA6po
Chapter 2 : National Differences in Political Economy