Political environment : Political environment Political environment refers to the influence of the system of government and judiciary in a nation on international business.
ELEMENTS OF POLITICAL ENVIRONMENT ARE:1.DEMOCRACY2.TOTALITARIANISM3.ETHICAL ISSUES4.POLITICAL RISk. : ELEMENTS OF POLITICAL ENVIRONMENT ARE:1.DEMOCRACY2.TOTALITARIANISM3.ETHICAL ISSUES4.POLITICAL RISk.
Slide 4: DEMOCRACY:
It refers to the political arragement in which the supreme power is vested in the people .it maintains stable business environments through its laws protecting
individual property rights.
Slide 5: TOTALITARIANISM: It is also called as authoritarianism; individual freedom is completely subordinated to the power of the authority of state and concentrated in hands of one person or in a small groups , which is not constitutionally accountable to the people. There are three types :
Theocratic, secular, tribal.
Slide 6: ETHICAL ISSUES:
There are ethical issues involved in having business deals with military reasons and also issues related to the payment of bribes to the government officials.
It is any government action or politically motivated event that could adversely affective long term profitability or the value of the firm. It varies from nation to nation. There are two types of risks:
Macro political risk:- It affects all international business.
Micro political risk:- It affects specific foreign business.
Slide 7: LEGAL ENVIRONMENT:
It refers to the legal systems obtaining in the country. It refers to the rules and laws that regulate behavior of individuals & organization.
There are four basic legal systems prevailing around the world:
Islamic law: It is derived from the interpretation of the Quran and practiced in Muslim majority countries.
Common law: It is prevalent in countries which are under British influence.
Civil or code law: It is derived from roman law, practiced in German, non Marxist &non Islamic countries.
Marxists law: It has takers in communists countries.
Slide 8: BY:
JAYA PRAKASH NAIDU YALLA(09MBI023)