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.
ibs_chapter_2_1_..pdf

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1/5/2017
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National
Differences
Learning Objectives:
Political Economy
? Political, economic, and
legal systems of countries
differ.
? 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
business
Chapter 2
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National Differences in Political
Economy
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Political system – the system of
government in a nation
? Political
systems can be assessed along these
dimensions:
Collectivism ——————————–Individualism
Democratic ——————————— Totalitarian
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Collectivism vs. Individualism
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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
representatives
? 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
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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
Cuba)
? 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)
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Economic Systems
? Market
Economy
? All
activities are privately
owned
? Command
Economy
? Government
plans the goods
and services produced and sold
? Mixed
Economy
? Privately
owned and free
market also mixed with
government/state owned
markets.
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Legal Systems
? Common
? Based
? Civil
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? Contract
law
contractual
agreements and regulations
on tradition, precedent and custom
? Based
? Property
on detailed set of written laws and codes
? Theocratic
? Private
law
? Class
religious teachings
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Is a strong government necessary to
promote growth? Why or why not?
?
What factors impact economic growth?
law
action vs public action
Discussion
? What
are some of the key
differences between these
laws?
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?
law
? Governs
law
? Based
Legal Systems
Hispaniola
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A Tale of Two Countries
Dominican Republic
Haiti
Colonized by Spain – long history of
political instability
Colonized by France – long history
of political instability
Spanish-speaking, partly European
society, open to foreigners
Creole-speaking
African society composed of exslaves and hostile to foreigners.
More attractive to European
immigrants and investors
Legacy of slave history and slave
revolt
Immigration encouraged
Immigration limited or restricted
Middle-class immigrants businesspeople and skilled
professionals contributed to the country’s
development
Haiti’s elite identified with France –
did not invest in Haiti
market export economy
minimal exports
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A Tale of Two Countries
Republic
+Dominican
Two of the most evil dictators in Latin
Haiti
America’s history
Unstable succession of presidents and
then evil dictator Francois “Papa Doc”
Duvalier
Trujillo undertook great
modernization and also protection of
forests and environment
Duvalier not interested in
modernization or environmental
protection
Booming economy with industrial free Haiti used to be richer and more
trade zones, many exports, tourism,
powerful than DR – the difference now
etc.
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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