National difference in Political, Legal, Culture

NATIONAL DIFFERENCE IN POLITICAL

R.Gnanaraj B.Com., (CA), MBA

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Political System:• A Political System is a system of politics and

government.

• It is usually compared to the law system, economic

system, cultural system, and other social systems.

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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.

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Collectivism:• Collectivism refers to a system that stresses the primacy

of collective goals over individual goals.

• When collectivism emphasized, the needs of society as a

whole are generally viewed as being more important than

individual freedom.

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Individualism:• Individualism is the opposite of collectivism.

• Individualism is a political philosophy that suggests

individuals should have freedom over their economic and

political pursuits.

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Democracy:• Who believed that all citizens are politically and legally

equal, and hence were entitled to freedom of thought,

opinion, belief, speech, and association.

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Totalitarianism:

• Totalitarianism means one person or political party

exercises absolute control.

o Communist totalitarianism

o Theocratic totalitarianism

o Tribal totalitarianism

o Right-wing totalitarianism

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NATIONAL DIFFERENCE IN LEGAL

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Legal System:• Today we live in global economy where we use goods

manufactured in one country and packaged in another

country.

• Businesses have cross boundaries of countries and

expanded themselves across the world, in search of

availability of raw materials, cheap labor, talent and market

for their goods.

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• Doing business internationally is totally different than in

home country.

• Business people have to well aware of country's culture,

people’ behavior, country’s legal system, its political

environment and economical conditions.

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Major Legal System: Common law

Civil law

Theocratic law

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Common Law:

• Developed in England in the 11th century – UK, Ireland,

USA (except Louisiana), Canada (except Quebec),

Australia, India, Hong Kong.

• The common law is more flexible than statutory law.

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• Common law courts are not absolutely bound by

precedent, but can reinterpret and revise the law, without

legislative intervention, to adapt to new trends in

political, legal and social philosophy.

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Civil Law:

• It is a legal system inspired by Roman law.

• It is also known as Code law.

• Code law is based on an all inclusive system of written

rules of law. Under code law, the legal system is

generally divided into three separate codes: Commercial

law, Civil and Criminal.

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Theocratic law• This system is based on religious teachings, as they are

enshrined in the religious scriptures.

• Islamic law, Sharia, is the most widely practiced religious

legal system in todays world.

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Mixed legal systems

• Mixed legal systems are mostly defined as the

Combination of civil law and common law.

• Examples - South Africa, Louisiana, Israel.

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Indian legal system• A unique feature of the India Constitution is the judicial

system.

• A single integrated systems of courts administers both

union and state laws.

• The Supreme Court of India, seated in New Delhi, is the

highest body in the entire judicial system.

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NATIONAL DIFFERENCE IN CULTURE

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What is Culture?• Culture is a system of values (abstract ideas about what a

group believes to be good, right, and desirable) and

norms (the social rules and guidelines that prescribe

appropriate behavior in particular situations) that are

shared among a group of people and that when taken

together constitute a design for living.

• A society is a group of people who share a common set of

values and norms.

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The Determinants of Culture

CultureNorms

andValue

System

WorkMotivation

Religion

Social Structure

Education &Language

Public Policy & Laws

Individual &Groups

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Social Structure

• A society's social structure is its basic social organization.

Two dimensions to consider:

• The degree to which the basic unit of social organization

is the individual, as opposed to the group.

• The degree to which a society is stratified into classes or

castes.

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Religious and Ethical Systems

• Religion is a system of shared beliefs and rituals that are

concerned with the realm of the sacred.

• Ethical system refer to a set of moral principles, or

values, that are used to guide and shape behavior.

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• Religions with the greatest following are

o Christianity (1.7 billion adherents)

o Islam (1 billion adherents)

o Hinduism (750 million adherents)

o Buddhism (350 million adherents)

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Individuals and Groups

• A group is an association of two or more individuals who

have a shared sense of identity and who interact with

each other in structured ways on the basis of a common

set of expectations about each other’s behavior.

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• In societies where the individual is emphasized• individual achievement and entrepreneurship are

promoted.• but, this can encourage job switching, competition

between individuals in a company rather than team building, and a lack of loyalty to the firm.

• In societies with a strong identification with the group• cooperation and team work are encouraged and life

time employment is common.• but, individual initiative and creativity may be

suppressed.

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Public Policy and Legal Framework

• Government Policies and legal systems of different

countries also reflected the culture values of the country.

These legal and policy frameworks influence business

practices in two ways:

• They determine the board framework for doing business in a

country, and

• They Influence and circumscribe management practices within

the company.

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Education• Formal education is the medium through which individuals

learn many of the language, conceptual, and mathematical

skills that are indispensable in a modern society.

• The knowledge base, training, and educational opportunities

available to a country's citizens can also give it a

competitive advantage in the market and make it a more or

less attractive place for expanding business.

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Language

• Countries differ in terms of language or means of

communication.

• There are two forms language• Spoken

• Unspoken

• Language is one of the defining characteristics of

culture.

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Spoken Language

• Countries with more than one spoken language

often have more than one culture.• Chinese is the mother tongue of the largest number of

people in the world.

• English is the most widely spoken language in the world,

and is becoming the language of international business.

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Unspoken Language

• Unspoken language refers to nonverbal cues.

• Unspoken language such as facial expressions and hand

gestures can be important for communication.

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Work Motivation

• Employees who are motivated to work long hard are

generally more productive than those who are not. On an

aggregate basis, this will have a positive effect on

economic development and national competitiveness.

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32Thank You