The document summarizes key topics from chapters 2 and 3, including:
- Individualism and collectivism as competing philosophies that influence business environments.
- Different types of governments and how they approach business such as socialism, communism, and social democracies.
- International laws and regulations multinational companies must follow.
- Advances in technology presenting both opportunities and risks for business.
- Ethics and corporate social responsibility being increasingly important considerations for multinational operations.
3. Socialism -There is government ownership but profit is not the ultimate goal -Based on the philosophies of Karl Marx, Friedrich Engles, and Vladimir IIyich Lenin -Classless society when everything was essentially communal -Broken down into two extremes: Communist & Social Democracy - Communist: Limited individual freedom, everything is government regulated. Former countries under communist control include Soviet Union, Nicaragua, Cambodia, Laos and Vietnam. -Although many countries are no longer under communist rule, China is still communist to this day -Social Democracy: Achieved it's goal through a non violent movement -Australia, France, Germany, Great Britain, Norway, Spain and Sweden are examples - Problems: businesses that were nationalized were inefficient due to the guarantee of funding and the monopolistic structure. Citizens noticed an increase in taxes and prices
4. >The political system or system of government in a country greatly influences how it manages and conducts business. - Legal and regulatory environments can be extremely confusing. - In result, slower time to market and greater costs occur. - MNCs must take time to evaluate legal framework of every different market. > There are four foundations on which laws are based - Islamic Law - Socialist Law - Common Law - Civil or Code Law > MNCs must understand that there are certain rules that one must follow when interacting with another MCN. These are called International Law.
Mike four foundations - read from page 43 in book!
Mike International Law - have class read the 6 different ones!! pg 44 Explain Watergate ** 1977 the FCPA was passed, makes it illegal to influence foreign officials through personal payments. Ups and downs, fear of loss of sales, but it brightened the image of the USA internationally. Huge success, actually increased trade between countries Bureaucratization, a system of government in which most of the important decisions are made by state officials rather than by elected representatives. care more about the present than the future. talk about japanese example in the book. Privatization is the incidence or process of transferring ownership of a business , enterprise, agency or public service from the public sector (the state or government) to the private sector (businesses that operate for a private profit) or to private non-profit organizations.
Sarah
Sarah
Sarah
0.00 - 2:11 Mike
Cole Talk about China. Child Labor Laws, Low wages, counterfeit and piracy are big problems. Japan- work force about women rights/lower pay for same job
Mike 4:43
Mike page 66. corruption graph Also mention watergate as a FCPA, ask what other scandels the class can think of. More developed countries have less corruption
Sarah why do you think higher standard for bigger companies?
Sarah Examples, Sarah Walmart Mike Exxon
US has a lot more laws and regulations concerning accepting bribes unlike Germany and France Set up 2 lists on board, make a list of cultural differences between countries and decide what implications this makes Look at sheet for priorities Multinationals will have to have cultural compatence to other places
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