Politics and Culture in Global Markets Class .docx - Week 1 Current Factors Political and Cultures Global Markets Evolution of Political Systems

Politics and Culture in Global Markets Class .docx - Week 1...

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Week 1 Current Factors Political and Cultures Global Markets Evolution of Political SystemsGeographyCulturePoliticsEconomic Systems Input FactorsLaborLandCapitalEntrepreneurshipWhat is Globalization?Globalization refers to the trend towards a more integrated global economic system. -Globalization of markets:The merging of all the separate national markets into one huge global market place-Globalization of ProductionThe Emergence of Global Institutions Global Institutions: Manage, Regulate, and police the global market place Promote the establishment of multinational treaties to govern the global business system. World Trade Organization (WTO)Polices world trading system and ensures nations adhere to the rules established in WTO treatiesRules: Integration, Dumping Synergy of Political SystemGeography (Creates)CulturePolitical SystemEconomical System EuropePolitics/CultureNon-homogenous societies
Monetary policy = currencyFiscal Policy = Taxes, financial institutions, debt structure, financial instruments. International Monetary Fund: Maintains order in the international monetary system.World Bank:Promotes economic development The United Nations (UN)-Maintains International Peace and Security-Develops friendly relations among nations-Cooperates in solving international problems-Promotes respect for human rights-Is a center for harmonizing the actions of nations. Migration/ImmigrationFreedomStandard of LivingSocial/PoliticalCriminalEducationClimate Change Comparative Advantage of National ResourcesLower Cost LaborLower cost of rentsCapital Investment InducementsPockets of High Education What is driving the move toward greater globalization? -Technological change-Communications -Investments and world banking What are the implications of technological change for the globalization of markets? -Low costs communications networks help create electronic global marketplaces. -Low cost transportations:1.Enables firms to create global markets2.Facilitates the movement of people promoting a convergence of consumer tastes and preferences. Multinational Enterprise: Any business that has productive activities in two or more countries.
Week 2Power Point 2What is the political economy of a country?-A country’s political economy refers to it’s political, economic and legal-system-These systems are interdependent, and interact and influence each other.-A country’s political system has major implications for the practice of international business. Political System: The system of a government in a nationEconomies are affected by their politics Market System= Political system has no impact on economy Mixed Eco System Government (political), leaning consumer, market protectionLemon Law: Americanstate laws that provide a remedyfor purchasers of cars and other consumer goods in order to compensate for products that repeatedly fail to

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