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8/19/2019 internationalpolitics Presentation.pptx
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International Politics.
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Presented by : M.Amir Sohail
Roll # 59
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Political System: A political system is
basically of politics and
government in a country.It governs a complete set of
rules regulations institutions
and attitudes.
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Changing politicalsystem
The political environment of countries is
critical concern for the internationalmarketers.International law recognize the right of
nation to allow or deny the foreign firm todo the business.
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Political Factors Effecting on IBPolitical and legal differences
Political and legal forcesTrade and investment RestrictionsRestraining Forcesovernment policies and restrictionsPolitical environment.
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Examples Of Changing
Political SystemsUSSR:
The economy of !""R is moving from command economy advocated
by the communist ideology to the market driven economy.
China: #hina is realizing that it must walk a fin line b$w commitment to its
current philosophy and the need to attract the outside investment. It wantsto attract foreign capital to ensure that is economic engine continues to
work efficiently.
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Political Ideologies and Economics
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Ideology:A set of integrated beliefs% theories and doctrines that helps to
direct the actions of a society is called ideology.
ypes of Ideologies:The ideologies that help to e&plain
the nations economic policies are
given belowPolitical "ystems'conomic "ystems.
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Political Systems:!" #emocracy: A system of government in which the people either
directly or through their elected officials decide what is to
be done.
Feat$res Of #emocracy:Right to e&press opinions freely'lection of representatives for limited terms of office
Independent court system that protects individual
property and rightsRelatively non(political bureaucracy and defense
infrastructure.
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Political Systems:%" otalitarianism:A system of government in which one individual or party maintains
complete control and either refuse to recognize other parties or
suppresses them.
ypes Of otalitarianism:There are many types of totalitarianism% out of which
three main types are given below
#ommunismTheocratic Totalitarianism"ecular Totalitarianism
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Political Systems:Comm$nism:A political system in which the government owns all property and makes
all decision regarding production and distribution of goods and services.
heocratic otalitarianism:A system of governance in which a religious group e&ercises total
power and repress or persecutes non(orthodo& factions.
Sec$lar otalitarianism:A system of governance in which the military controls everythingand makes decision which it deems to be in the best interest of the
country.
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Economic SystemsThere are three basic system% ) capitalism% socialismand mi&ed*.
For the purpose of analysis we classify the system in
terms of
a* Resource Allocation )market driven v$s
centrally determined*
b* Property +wnership ) private v$s public*
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Economic Systems&ar'et(#ri)e Economy:An economy in which goods and
services are allocated on the basis
of consumer demand.
Centrally #etermined Economy: An economy in which goods and services are allocated based on a plan formulated by a committee that decides
what is to be offered.
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Economic Systems&ixed Economy:'conomic systems
characterized by a combination
of market and
centrally driven planning.
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*o)t. Control Of +ssets
The process of selling government assets to private buyers.Pri)ati,ation:
Contract management:A process by which and organization transfers operatingresponsibility of an industry without transferring the legal title
and ownership.
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*o)t. Control Of +ssets
Reasons for Pri)ati,ation: ,ore efficient to have the goods and services provided by private
business than by government #hange in political culture brings about a desire to sell off these assets
The company is making money and the govt. feels that there is more to be gained by selling now than by holding on
the purchase price can be used to reduce the national debt #ompany is losing money and govt. has to assume the losses out of the
national treasury
The company needs research and development funds in order tomaintain a competitive stance International funding agencies are making assistance to the country
conditional on reduction in the size of govt.
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*o)t. Control Of +ssets
Reasons for -ationali,ation: Promoting economics development 'arning profits for national Treasury Preventing companies from going bankrupt and closing their
doors 'nhancing programs that are in national interest Increasing the political or economic control of those in power 'nsuring goods and services to all citizens regardless of their
economic status
-ationali,ation:A process by which the government takes control of business
assets% "ometimes with remuneration of the owners and other
times without such remuneration.
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Economics Integration'conomics Integration is the establishment
transnational rules and regulation that
enhance economic and cooperation among
countries.