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NATIONAL DIFFERENCE IN POLITICAL
R.Gnanaraj B.Com., (CA), MBA
02/05/2023R.Gnanaraj
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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.
R.Gnanaraj
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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