International business strategy.

My topic is about ( South Africa) so i need a page and half writing about the national differences in south Africa. and here down in the attachment that is what i study in class about the national differences.

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Learning Objectives:
Political Economy
? Political, economic, and
legal systems of countries
? Together
these systems are known as the political
economy of a country
? All
of these differences have major implications for
the practice of international business.
? Understand
political systems
? Understand
economic systems
? Understand
legal systems
? Explain
the implications for management practice of
national difference in political economy
? How does the political economy affect international
Chapter 2
National Differences in Political
Political system – the system of
government in a nation
? Political
systems can be assessed along these
Collectivism ——————————–Individualism
Democratic ——————————— Totalitarian
Collectivism vs. Individualism
What is Collectivism?
? The needs of the society as whole are
generally viewed as being more
important than individual freedoms
Democracy vs. Totalitarianism
? What
is a democracy?
? Government
is by the people, exercised
either directly or through elected
? Foundations in Ancient Greece –
citizens should be directly involved in
decision making
? Can
be traced to the Greek philosopher Plato
support collectivism
? Communists vs. Social Democrats
? Socialists
What is Individualism?
? The
individual should have freedom in economic
and political pursuits
Democracy vs. Totalitarianism
? What
is Totalitarianism?
Government in which one person or political party
exercises absolute control over all spheres of human life,
and opposing political parties are prohibited
? Communist totalitarianism – socialism an be achieved
only through totalitarian dictatorship (North Korea or
? Theocratic totalitarianism – political power monopolized
according to religious principles (Iran or Saudi Arabia)
? Tribal totalitarianism – particular tribe monopolizes
political power (Uganda)
? Right-wing totalitarianism – permits economic but not
political freedom (fascist regimes in Italy and Germany
in 1930s and 1940s)
Economic Systems
? Market
? All
activities are privately
? Command
? Government
plans the goods
and services produced and sold
? Mixed
? Privately
owned and free
market also mixed with
government/state owned
Legal Systems
? Common
? Based
? Civil
? Contract
agreements and regulations
on tradition, precedent and custom
? Based
? Property
on detailed set of written laws and codes
? Theocratic
? Private
? Class
religious teachings
Is a strong government necessary to
promote growth? Why or why not?
What factors impact economic growth?
action vs public action
? What
are some of the key
differences between these
? Governs
? Based
Legal Systems
A Tale of Two Countries
Dominican Republic
Colonized by Spain – long history of
political instability
Colonized by France – long history
of political instability
Spanish-speaking, partly European
society, open to foreigners
African society composed of exslaves and hostile to foreigners.
More attractive to European
immigrants and investors
Legacy of slave history and slave
Immigration encouraged
Immigration limited or restricted
Middle-class immigrants businesspeople and skilled
professionals contributed to the country’s
Haiti’s elite identified with France –
did not invest in Haiti
market export economy
minimal exports
A Tale of Two Countries
Two of the most evil dictators in Latin
America’s history
Unstable succession of presidents and
then evil dictator Francois “Papa Doc”
Trujillo undertook great
modernization and also protection of
forests and environment
Duvalier not interested in
modernization or environmental
Booming economy with industrial free Haiti used to be richer and more
trade zones, many exports, tourism,
powerful than DR – the difference now
is dramatic
28% forested
1% forested
Per capita income low ($2200/yr) – but Poorest country in the new world
5 times that of Haiti
2/3 of land – 1/3 of population
1/3 of land – 2/3 of population
Major overpopulation issues
Some health issues
Major health issues – AIDS, Malaria,
Tuberculosis – some of the highest
rates in the world

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