NATIONAL DIFFERENCES (IBT)

• Totalitarianism


  • One person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
  • Communist totalitarianism- found in states where the communist party monopolizes power
  • Theocratic totalitarianism- found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
  • Tribal totalitarianism- found in states where a political party that represents the interests of a particular tribe monopolizes power
  • Right-wing totalitarianism- permits some individual economic freedom, but restricts individual political freedom
• Individualism


  • Refers to the philosophy that an individual should have freedom in his own economic and political pursuits. (Greek Philosopher: Aristotle 382-322 BC)
  • Individual diversity and private ownership are desirable
  • Implies democratic political systems and free market economies
• Political Economy


  • Refers to how the political, economic, and legal systems of a country are interdependent
• Countries where collective goals are given primacy


  There is marked state control of markets
• Political systems

  • Have two dimensions: Degree of collectivism vs. individualism, Degree of democracy vs. totalitarianism
• Legal Systems


  • Rules that regulate behavior along with the process by which laws are enforced and through which redress for grievance is obtained
  • Common Law - based on
• Socialists (Karl Marx 1818-1883)


  • Advocate state ownership of the basic means of production distribution, and exchange
  • Manage to benefit the society as a whole, rather than individual capitalists
• Collectivism

  Stresses the primacy of collective goals over individual goals (Greek Philosopher: Plato)
• Political Systems

  • System of Government in Nations
• Socialist Ideology


  • The Communist- Socialism can only be achieved through violent revolution and totalitarian dictatorship
  • The Social Democrats- Socialism is achieved through democratic means: a. Retreating as many countries toward free market economies, b. state-owned enterprises have been privatized
• Democracy

  • Government is by people, exercised either directly or through elected representatives
  • Usually associated with individualism
  • Pure Democracy- Based on the belief that citizens should be directly involved in decision making.
  • Representative democracy: citizens periodically elect individuals to represent them
• Countries where individual goals are given primacy

  Free market economic systems are fostered
• Types of Economic Systems

  • Market economy: what is produced & in what quantity is determined by supply/demand and signaled to producers through a price system
  • Command economy: planned by government
  • Mixed economy: a balance of both of the above
  • State-directed economy: the state directly influences the investment activities of private enterprise through "industrial policy"
• Contract Law

  The body of the law that governs contract enforcement
• Common Law


  • Based on tradition, precedent, and custom
• Southeast Asian 2022


  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Philippines
• Theocratic Law


  • Based on religious teachings
• Civil Law in Contract Law

  • Shorter and less specific
• Legal systems consist of rules that regulate behavior along with the process by which laws are enforced and through which redress for grievance is obtained
• The Foreign Corrupt Practices Act makes it illegal for U.S. companies to bribe foreign government officials to obtain or maintain business over which that foreign official has authority
• Property rights can be violated through

  • Private action-theft, piracy, blackmail
  • Public action-legally: excessive taxation or illegally: bribes or blackmailing
• Ways to protect intellectual property

  • Patents- exclusive rights for a definite period to the manufacture, use, or sale of an invention
  • Copyrights- the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit
  • Trademarks- designs and names by which merchants or manufacturers designate and differentiate their products
• Product safety laws set certain standards to which a product must adhere
• International agreements for intellectual property protection

  • World Intellectual Property Organization
  • Paris Convention for the Protection of Industrial Property
• Civic Law


  • Based on detailed set of laws organized into codes
• Contract is a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved
• Types of legal systems

  • Common Law
  • Civic Law
  • Theocratic Law
• High levels of corruption reduce foreign direct investment, the level of international trade, and the economic growth rate in a country
• Common Law in Contract Law

  • Very detailed with all contingencies spelled out
• State-directed economy

  The state directly influences the investment activities of private enterprise through "industrial policy"
• Property rights

  Legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource
• Corruption Index 2023

  • Denmark
  • Finland
  • New Zealand
  • Norway
  • Singapore
• Intellectual property


  Property that is the product of intellectual activity
• Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage
• Countries with software license misuse


  • China
  • Russia
  • US
  • UK
  • Peru
• Protection of intellectual property rights differs from country to country