Term
| Rule of Man vs. Rule of Law |
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Definition
Rule of Man-ultimate power resides in a person.
*Instrumental component of Totalitarianism*
Rule of Law-institutes a just social and political environment, guarantees the enforeability of commercial contracts and business transactions, and safeguards personal property and individual freedom.
*Instrumental component of Democracy* |
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Term
Political Risk
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4 Types of Political Risk |
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Definition
the likelihood that political decisions, events, or conditions will effect a country's business environment in ways that will cost investors some or all of the value of their investments.
1) Systemic-impacts all firms operating within environment.
2) Procedural-expenses increase; rate of return decreases.
3) Distributive-"creeping expropriation."
4) Catastrophic-flash points disrupts all business. |
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Term
Freedom House Classifications
(3 Levels of Freedom)
#1 |
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Definition
1) Free-high level of political rights and civil liberties; opposing political party plays an important role in government and possesses actual power.
2) Partly Free-limited political rights and civil liberties; political corruption, violence, militar influence, censorship, and discrimination against minorities. |
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Term
Freedom House Classifications
(3 Levels of Freedom)
#2 |
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Definition
| 3) Not Free-repression or denial of basic rights and civil liberties; one-party dictatorship, rule of man, and government takes over business transaction. Religious and social freedoms are severely constrained. |
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Term
Totalitarianism
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4 Types of Totalitarianism |
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Definition
consolidation of power into a single agent who controls the political, economic, and social activities of the country.
1) Fascism-socialistic society overseen by dictator.
2) Authoritarianism-dictator w/ few power limitations.
3) Secular Totalitarianism-dictator w/ absolute power.
4) Theocratic Totalitarianism-affiliated w/ a relgion.
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Term
Democracy
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5 Types of Democracy |
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Definition
A government that is "of the people, by the people, and for the people." There is widespread participation by citizens in a fair and just decision-making process.
1) Parliamentary
2) Social
3) Liberal
4) Representative
5) Multiparty |
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Term
Political Ideology
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How Does Political Ideology Affect International Business? |
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Definition
Political Ideology-a system of ideas that expresses the goals, theories, and aims of a sociopolitical program; thereby stipulating how a society ought to function, and outlining the methods by which it will work.
*Political ideology converts ideas into political actions, and political actions influence business environments.* |
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Term
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Definition
Democracy and Individualism-are intrinsically related and mutually dependant. Primary focus is placed on the Individual. *Defining theme of democracy is freedom*
Totalitarianism and Collectivism-subordinates the individual to the interests of the Collective.
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