...group (emotions) • Cognitive Pillar (informal) • Internalized values and beliefs that guide behavior • Culture & Ethics (logic) • How do these pillars shape behavior? Understanding Institutions… • What is the KEY ROLE of an institution? • Reduce Uncertainty! • Institutions constrain the range of acceptable actions. • Uncertainty surrounding economic transactions can lead to transaction costs. • Misunderstandings and conflicts. Understanding Institutions… • Institutions are not static • Some countries are in transition from centrally planned economies to market competition (China, Poland, Russia, Vietnam) • The “rules of the game” are constantly in flux in all societies. Institution-Based View of Global Business… • Two Core...
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...After World War One there were many repercussions from the war. The Soviet Union lost a war to Japan then later pulling out of World War One due to internal conflicts and workers strikes. This loss of power caused widespread anger and lost pride in an overly patriotic nation. Italy lost a generation of men to a war without benefits, they were ignored in discussions of diplomacy. Germany’s war repercussions along with their demilitarization and all loss sense of trade helped spark totalitarianism in Germany. All totalitarianism is born out of hate, fear, and charismatic leaders using these factors to advance personal agendas. The rise of totalitarianism in Russia came with the loss of nationalism after losing both the Russo-Japanese war and World War One. The Russian Government began their climb to a totalitarian state with the loss of the Russo-Japanese war. Japan clean...
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...the same juncture. The political scenario in different states may be different. Even at the centre, the political scenario may change with changes in the dominant interest group. As opposed to diverse political environments in a particular country, a particular political ideology may be found in more than one country. It is because the ethnic background, language, religion and so on bring many countries within the fold of one common political ideology. For example, it was the ethnic considerations that brought Serbs of the neighbouring regions into one political umbrella known as Greater Serbia. Thus political environment is marked by both diversity and uniformity. The political scenario often varies between the two extremes democracy on the one hand and totalitarianism on the other. The purest form of democracy represents direct involvement of citizens in policy making. But with growing time and distance barriers over time, it did not remain feasible for all citizens to participate in the political process; and as a result, democracy turned into a representative democracy where only the elected representatives have a say in political decisions. Whatever may be the form of democracy, the people enjoy fundamental rights of various kinds of freedom and civil liberties. However, in parliamentary democracy, political decisions are influenced by widely varying interest groups. On the...
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...Chapter three Governmental and legal systems CHINA COMPLICATED RIS, BIG OPPORTUNITIES During its thirty years of communist rule, China prohibited foreign investment and restricted foreign trade. Then, China enacted the Law on Joint Ventures using Chinese and Foreign Investment in 1978. China’s subsequent transformation has been fueled by a landslide of foreign investments made in response to the country’s market potential, market performance, improved infrastructure, enormous resources, and strategic position. Frustrating this process, however, have been the politics of China’s elaborate bureaucracy, as well as its ill-defined legal system and pervasive corruption. Historically China has relied upon “the rule of man” and the belief that legal rights are derived from the power of the individual. Upon joining the WTO, China agreed to continue to reform its business environment and to move toward transparent, rules based, enforcement-oriented standards. But the business reality is far from the WTO obligations specifically in the continued controversy over the protection of intellectual property. Chinese enterprises are themselves becoming global investors, both by acquiring foreign firms and investing in foreign lands. INTRODUCTION For a multinational enterprise to succeed in countries with different political and legal environments, its management must carefully analyze the fit between its corporate policies and the political and legal conditions of each particular nation...
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...Global Business Today 6e by Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 National Differences in Political Economy Introduction Question: What is the political economy of a country? A country’s political economy refers to its political, economic, and legal systems These systems are interdependent, and interact and influence each other A country’s political system has major implications for the practice of international business 2-3 Political Systems A political system is the system of government in a nation Political systems can be assessed in terms of the degree to which they emphasize collectivism as opposed to individualism in terms of the degree to which they are democratic or totalitarian 2-4 Classroom Performance System The political, economic and legal systems of a country are called a) Political systems b) Economic systems c) Legal systems d) Political economy 2-5 Collectivism and Individualism Collectivism refers to a system that stresses the primacy of collective goals over individual goals Collectivism can be traced to the ancient Greek philosopher Plato Today, socialists support collectivism When collectivism is emphasized, the needs of the society as whole are generally viewed as being more important than individual freedoms 2-6 Collectivism and Individualism Socialism Modern socialists trace their roots to Karl Marx who advocated state...
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...characters may be the genesis of the party’s power, this is only one factor. Telescreens, CCTV, and hidden microphones are situated in the ‘1984’ society, to manipulate the minds and alter the thoughts of the general population. The undeveloped, urban life and land of ‘1984’ portrays the dangers of totalitarianism. Furthermore, the novel is set in the future, which exposes the Party, a totalitarian government, and their control on the past and thriving strength. Truly then, the setting of the novel (isolated nature) affects the development of various themes such as psychological manipulation, dangers of totalitarianism, the party’s subversiveness, historical control leading to power. The party’s way of dealing with subversive people is to make them disappear, and eventually remove them from history, therefore giving the party absolute power to change the past and the future. In 1984, ‘people simply disappear’, their ‘name was removed from the register’ and their ‘one-time existence was denied and forgotten’. In a totalitarian society, Orwell illustrates that if citizens cast criticism or dissent, they are ‘abolished’ to conserve complete control and avoid a rebellion. Orwell’s view on this political concept was constructed through his experience of the nightmarish atrocities committed by fascist political regimes such as Hitler and Stalin’s power. While working in Burma as a Britain Imperial Policeman, he was required to enforce strict laws that included vaporizing subversive...
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...Why This Person is Superior George Orwell as a Novelist George Orweel is one of the leading novelists of modern age. His novels express a powerful sattire on the political and social hypocrisies. By thw quality of his writing, he has achieved international fame and recognition. In his evolution as a novelist he moved from simple narration to symbolic expression. But he has been criticised by many critics due to the lack of sincere characteristics of a novel in his novels. It has bveen proved that he has failed as a novelist. Tom Hopkinson opines, “Orwell’s reputaion as awriter rests largely on his novels, but his gifts are not those of a novelist; and, if the novel had not happened to be the prevailing literary form during the twenty years when he was writing, he would proably never have been attracted to it. Orwell had little imagination, little understanding of human relationshipl, little sympathy with individual human beings- though much with humanity in general.” O.D. Leavis also found that he had “wasted a lot of energy trying to be a novelist. I think I must have read three or four novels by him and the only impression those dreary books left on me was that nature didn’t intend him to be a novelist.” Edward M. Thomas also found that he did not possess the temperment of a novelist. Thus Orwell, who wished to produce more than thirty novels, had to admitin aletter, written to his friend, Julian Symons, “You are perfectly right about my own character constantly intruding...
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...In 1984, George Orwell discusses the concept of doublethink, a major motif that appears throughout the story. In essence, doublethink is the ability to hold two contradictory ideas as equally true in one’s mind at the same time. Though this concept seems unachievable today, Orwell shows it in the story as an actual tool used by the people of Oceania to disregard the truth. The government of Oceania uses doublethink to brainwash their citizens into believing whatever is suitable to the government at the time. Orwell portrays doublethink as a real concept achievable by the residents of Oceania to show to the maximum degree, the dangers totalitarianism and human ignorance. Orwell exaggerates the extent to which humans can be ignorant to warn the reader about the dangers of this blind uniformity. In the very beginning of the story, the citizens of Oceania are forced to believe that the chocolate ration has been increased to be 20 grams, when the ration has actually...
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...CHAPTER THREE THE POLITICAL AND LEGAL ENVIRONMENTS FACING BUSINESS OBJECTIVES • To discuss the different goals and functions of political systems • To profile trends in the emergence and diffusion of political systems • To identify the idea of political risk and approaches to managing it • To understand how different political and legal systems affect the conduct of business • To profile trends in the evolution and diffusion of legal systems • To examine the major legal issues facing international business companies • To profile the idea of intellectual property and the basis of concern and controversy Chapter Overview When firms source, produce, and/or market products in foreign countries, they encounter dynamic and challenging political and legal environments. Chapter Three provides a conceptual foundation for the examination of the political and legal dimensions of international business operations. It compares major political regimes, discusses their potential influence upon the development of effective business strategies, and considers the relevance of political risk. The chapter also examines the major types of legal systems that exist today, as well as the strategic and operational concerns they pose. It concludes with a discussion of intellectual property rights and the associated challenges confronted in an age of globalization. Chapter Outline OPENING CASE: CHINA’S BUSINESS ENVIRONMENT [See Map 3.1.] During its thirty years...
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...The phenomena of human behavior is a highly sophisticated marvel that has transformed and adapted over time. Human beings have had to learn to work in isolation and in groups in order to survive. Fascinatingly, research has shown that working in groups and interactions with others has a significant impact on an individual’s behavior. However, not all examples of humans working in groups are positive. Perhaps the most shameful and horrifying example of the power of human behavior in groups, would be from the influence of Nazism. Pre-Nazi Germany was called the Weimar Republic prior to Hitler’s rule, discrimination, and totalitarianism. It was created after World War I when the Kaiser at the time was removed from power and a semi-presidential...
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...1 Executive Summary This report is regarding How a foreign company; Uniqlo institution which is subsidiary company of Uniqlo Ltd, can approach to poverty in China on the basis of a Prahalad’s approach. First of all, to cover all of the rural area in order to provide the services as much poverty as possible for the reason of the effectiveness, efficiency and economics of scale to maximaize the benefit and reduce the cost. In order to accomplish it, small and medium size of schools and factories need to be established and teacher are appointed from the factory workers who have a certification of education so that effectively and efficiently and also affordable for rural people to join school. The local government help would be required for the facility of the infrastructure such as the transportation. Its tuition fee would set about $5 per month which occupied only 8% of their income. After their graduation, there is a opportunity to work Uniqlo factory even as team leader or manager. Final goal of this business is to collaborate with major companies to foster the future superior employees who are specialized in the specific and collaborated companies only. 2 Introduction 2.1 Background of company Uniqlo Ltd is a Japanese leading casual wear designer, manufacturer and retailer which is now operating all over the world as Multinational corporation. Their business strategy is known as “SPA”; stands for Speciality-store/retailer of Private-label Apparel, means that...
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...In the science fiction novel 1984 George Orwell creates the character Winston, who lives in the superstate Oceania and is exposed to the cruel practices of his government. Oceania's ruling government, The Party, is an adherent of a totalitarianism political system. The Party uses various methods to keep their people oppressed in order to stay in power. The unknown government leaders in the novel cling to the utilization of censorship, propaganda, and secret police in order to keep the citizens of Oceania laden with ignorance and little individuality; to withhold their grasp on political power in the superstate. The Party ensures the effectiveness of these three methods by preforming actions such as: censoring people by not allowing the possession of personal journals as well as obliterating all forms of literature, spreading propaganda, such as their slogans and mass exposure to their figure of a political leader Big Brother, and finally application of a constant pressure radiated by a mysterious and unmerciful group of police, the Thought Police. A key practice used by Winston's government to maintain control politically is censorship. For example, Winston secretly purchases a diary to keep record in, though “[it] was not illegal (nothing was illegal, since there [are] no longer any laws), but if detected it [is] reasonably certain that it would be [punishable] by death, or at least by twenty-five years in a forced labor camp” (9). Even though it is not illegal, the small action...
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...audience the farce of marriage values, the treatment of women and the control employed to tame those who were deemed ‘unruly.’ Shakespeare uses this technique in order to highlight to his audience the ridiculousness and brutality of their actions and, furthermore, to present to a modern audience the upheld expectations and beliefs of 16th century society and the ridiculousness of said societal values. The very title of the play alone – “The Taming of the Shrew” – through the language “taming” and “shrew,” indicates that there is something undesirable about a women acting of her own accord and thus she requires ‘taming.’ In the 1949 novel Nineteen Eighty-Four, George Orwell uses control in an attempt to warn the reader of the dangers of totalitarianism after having witnessed the harrowing lengths that governments were willing to go to in order to sustain sovereign authority. Orwell was deeply disturbed by the cruelty and oppression that he had witnessed in Communist countries and was concerned by the increasing use of technology as a means of control; as presented by his use of the telescreen. Within Oranges Are Not the Only Fruit, a bildungsroman; meaning a novel of formation or education, set within the 1960s – a period of time that was witnessing the beginning of personal liberation and a decrease in conservative values – Jeanette Winterson presents a heartfelt critique of religion and control through a young girl’s exploration of life and coming of age whilst saturated by religious...
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...only without real war, between the East and the West; associated with mutual percept of ill intentions between military-political coalitions. In the year 1945, the Soviet Union and the United States had forged great friendship due to their joint efforts to triumph over Nazi regime in the Second World War. The outstanding political, economic and ideological divergence of these two nations frequently barred them from arriving at a consensus on major policy issues as some almost brought them to the verge of war. ("The Soviet Union and the United States - Revelations from the Russian Archives | Exhibitions - Library of Congress", 2016) Initially, the government of United States was unfriendly to the Soviet Union rulers for withdrawing Russia out of the First World War and was against their communism-based ideology. United States government later was offering relief program to the famine in the Soviet Union around 1920s. The two countries forged diplomatic relations later in the year 1933. However, the totalitarianism of Joseph Stalin’s government towards Eastern Europe resulted to tensions between these two countries as the United States advocated for democratic nations. The Soviet Union had also proclaimed peaceful coexistence policy but its growing subjection and later invasion of Afghanistan in...
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...Russia out of World War I and was opposed to a state ideologically based on communism. Although the United States embarked on a food crisis relief program in the Soviet Union in the early 1920s and American businessmen established commercial ties there during the period of the New Economic party. Because of differences, the two countries did not establish tactful relations until 1933. By that time, the totalitarian nature of Joseph Stalin's regime presented an insurmountable obstacle to friendly relations with the West. A few years later when George Orwell released his “Animal Farm” which was rumored to be set around Stalinist Russia, it was no wonder people took notice of the controversial novel. As you read the story of Manor Farm, you begin to notice a few details that are not at all suited for a rural English family farm. Before starting on this piece, Orwell had mentioned in interviews that he wrote to make political writing into an art. It’s also understood that all of his works were acts strongly against Totalitarianism and for Democratic Socialism. Writing from all his past experiences gave his readers a firsthand look as to the author’s point of view- as if it wasn’t clear enough before. Orwell writes that his time in Spain during the revolution really exposed him...
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