Internatioal business_Chapter_2.doc

National Differences in Political Economy INTRODUCTION POLITICAL SYSTEMS Collectivism and Individualism Democracy and Totalitarianism ECONOMIC SYSTEMS Market Economy Command Economy Mixed Economy LEGAL SYSTEMS Different Legal Systems Differences in Contract Law Property Rights and Corruption The Protection of Intellectual Property Management Focus: Starbucks Wins Key Trademark Case in China Product Safety and Product Liability THE DETERMINANTS OF ECONOMIC DEVELOPMENT Differences in Economic Development Broader Conceptions of Development: Amartya Sen Political Economy and Economic Progress Country Focus: Emerging Property Rights in China Geography, Education, and Economic Development Learning Objectives 1. Understand how the political systems of countries differ. 2. Understand how the economic systems of countries differ. 3. Understand how the legal systems of countries differ. 4. Be able to explain what determines the level of economic development of a nation. 5. Discuss the macro-political and economic changes taking place worldwide. 6. Describe how transition economies are moving towards market based systems. 7. Articulate the implications for management practice of national difference in political economy. Chapter Summary This chapter focuses on how political, economic, and legal systems collectively influence a country’s ability to achieve meaningful economic progress. The first half of the chapter focuses on the different political, economic, and legal systems that are influential in the world. It is made clear to the reader that these differences are significant, and must be clearly understood by the managers of international firms. The section that focuses on legal systems includes a discussion of intellectual property, including patents, copyrights, and trademarks. Protecting intellectual property is a particularly problematic