Podcast
Questions and Answers
What is one of the functions of political systems?
What is one of the functions of political systems?
- Provide healthcare
- Ensure stability based on laws (correct)
- Enforce religious practices
- Control individual freedom
Which political system is characterized by government control over all economic and political matters?
Which political system is characterized by government control over all economic and political matters?
- Socialism
- Democracy
- Anarchy
- Authoritarianism (correct)
Which legal system is known for its reliance on judicial precedents?
Which legal system is known for its reliance on judicial precedents?
- Common Law (correct)
- Civil Law
- Religious Law
- Mixed Systems
How do authoritarian governments typically maintain power?
How do authoritarian governments typically maintain power?
What is NOT a major type of political system?
What is NOT a major type of political system?
What can be considered a source of country risk in relation to political and legal systems?
What can be considered a source of country risk in relation to political and legal systems?
What type of legal system incorporates religious beliefs into its laws?
What type of legal system incorporates religious beliefs into its laws?
Which of the following is a characteristic of socialist political systems?
Which of the following is a characteristic of socialist political systems?
What is a key characteristic of democracy in terms of market entry?
What is a key characteristic of democracy in terms of market entry?
What outcome is associated with increased market competition in a democratic system?
What outcome is associated with increased market competition in a democratic system?
Which political system is typically associated with command economies?
Which political system is typically associated with command economies?
What is a feature of mixed economies like Sweden and Singapore?
What is a feature of mixed economies like Sweden and Singapore?
In the context of national governance, what does it refer to?
In the context of national governance, what does it refer to?
What benefit can result from foreign carmakers entering a market like India's?
What benefit can result from foreign carmakers entering a market like India's?
What is the relationship between political and economic freedom?
What is the relationship between political and economic freedom?
What can increased competition in a market lead to?
What can increased competition in a market lead to?
What was one reason for citizens boycotting Disneyland Paris?
What was one reason for citizens boycotting Disneyland Paris?
What is a significant effect of terrorism on certain industries?
What is a significant effect of terrorism on certain industries?
Which law affects how foreign investors can enter a certain country?
Which law affects how foreign investors can enter a certain country?
What restriction did Japan impose concerning foreign investment?
What restriction did Japan impose concerning foreign investment?
Which country restricts foreign oil companies from having full ownership of their firms?
Which country restricts foreign oil companies from having full ownership of their firms?
What kind of laws control how firms conduct marketing and distribution activities?
What kind of laws control how firms conduct marketing and distribution activities?
What does the Foreign Corrupt Practices Act primarily address?
What does the Foreign Corrupt Practices Act primarily address?
In which sector does the Chinese government require foreign investors to seek partnerships with local firms?
In which sector does the Chinese government require foreign investors to seek partnerships with local firms?
What is the primary function of arbitration?
What is the primary function of arbitration?
In which scenario would litigation commonly occur?
In which scenario would litigation commonly occur?
What aspect of business does Christopher Johnson emphasize in his profile?
What aspect of business does Christopher Johnson emphasize in his profile?
What advantage does Christopher attribute to studying abroad?
What advantage does Christopher attribute to studying abroad?
Which statement best describes the adversarial nature of litigation?
Which statement best describes the adversarial nature of litigation?
What is the primary reason for China allowing access to foreign capital and technology?
What is the primary reason for China allowing access to foreign capital and technology?
Which countries prohibit cigarette advertising on television?
Which countries prohibit cigarette advertising on television?
What is a common consequence of laws on income repatriation?
What is a common consequence of laws on income repatriation?
What can cause foreign firms to abandon business ventures in countries such as China and Russia?
What can cause foreign firms to abandon business ventures in countries such as China and Russia?
What legislation made it illegal for U.S. firms to offer bribes to foreign parties?
What legislation made it illegal for U.S. firms to offer bribes to foreign parties?
In which area might the legal systems of developing economies typically be inadequate?
In which area might the legal systems of developing economies typically be inadequate?
What is a key factor affecting accounting and reporting laws around the world?
What is a key factor affecting accounting and reporting laws around the world?
Which of the following is an example of extraterritoriality?
Which of the following is an example of extraterritoriality?
Study Notes
Major Political Systems
- Three primary political systems: Authoritarianism, Socialism, Democracy; these systems can overlap and aren't mutually exclusive.
Functions of Political Systems
- Protection against external threats.
- Stability through the rule of law.
- Governance over resource allocation within society.
- Structure for interpersonal interactions among members of society.
Legal Systems
- Legal system interprets and enforces laws, establishing norms for conduct.
- Four major types of legal systems: Common Law, Civil Law, Religious Law, Mixed Systems.
Sources of Country Risk
- Political risks stem from government structures, political parties, legislative bodies, and various lobbying groups.
- Legal risks relate to laws and regulations aimed at maintaining order in commercial activities, dispute resolution, and protecting intellectual property.
Authoritarianism
- Characterized by total government control over economic and political matters.
- Exists in theocratic or secular forms with leadership often centralized in a dictator.
- Power maintained through mechanisms like secret police and propaganda.
- Examples include Cuba, North Korea, and historical regimes in China, Germany, the Soviet Union, and Spain.
Economic and Political Freedom
- Democracy linked to "openness," fostering competitive markets with reduced entry barriers for foreign firms, enhancing overall product quality and lowering prices.
- Example: India's reduction of barriers in the car market led to increased competition and improved quality alongside reduced prices.
Political and Economic Systems
- Authoritarian regimes often correlate with command economies—state-managed production, pricing, and distribution.
- Democratic systems generally operate within market economies where decisions are driven by supply and demand.
- Socialism represents mixed economies, combining state intervention with market forces, with countries like Sweden and Singapore as examples.
National Governance
- Refers to policies and processes governing nations, including law formation and public resource management.
- Political and economic freedoms are intricately linked to national governance.
- Examples of citizen actions against globalization, such as boycotts in France against Disneyland Paris and McDonald’s.
Political Risks: Wars and Violence
- Wars and insurrections can severely impact business activities.
- Terrorism, a strategy of using force to achieve political goals, can disrupt industries like tourism and finance.
Legal System Risks
- Foreign investment laws, including restrictions in countries like Japan and Mexico, can limit market access.
- Regulations governing operating practices, distribution methods, and income repatriation, deeply affect foreign firms' operations.
- Example: China mandates joint ventures for foreign telecommunications investments.
Inadequate Legal Systems
- Weak legal systems may struggle with law enforcement, particularly in areas such as intellectual property rights.
- Developed countries can also exhibit these problems; legal inconsistencies have contributed to financial crises.
Extraterritoriality and Compliance
- Extraterritoriality applies home-country laws to foreign operations, exemplified by the EU's actions against Microsoft.
- The Foreign Corrupt Practices Act restricts U.S. firms from bribing foreign officials, impacting competitive parity.
Accounting and Reporting
- Discrepancies in accounting practices around the world, including asset valuation and arbitration processes, affect legal proceedings and firm responsibilities in different jurisdictions.
Christopher Johnson: Case Study
- Accountant with international experience gained through a study abroad program in Turkey.
- Worked with Deloitte Tax and Ayco, highlighting the importance of global business insights for career development in international finance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the major political systems including Authoritarianism, Socialism, and Democracy, and understand their functions in society. Delve into the different legal systems and how they influence governance and resource allocation, while assessing country risks related to political and legal factors.
