世界经济教学资料-ch2-national-differences-in-political-economy-精选文档.ppt

1、世界经济教学资料-ch2-national-differences-in-political-economy-PPT精选文档Introduction about the coursev Content1.National Differences in Political Economy2.Globalization3.Historical background of globalization4.International trade theories5.Trade&investment policies6.Foreign direct investment7.Economic integra

2、tion8.International monetary system9.U.S.in global economy10.Global perspectives in globalizationWorld EconomyvMethodSeminar,country focus,casesGroup discussion,team work,presentation,classroom quizWorld EconomyvRequirementClass-attendingQuestion-answeringPaper-handingActive in discussion&presentati

3、onWorld EconomyvExaminationAll in English30%classroom performance&quiz70%final examChapter 2National Differences in Political Economy2-7What Is A Political Economy?vThe political economy of a nation refers to how the political,economic,and legal systems of a country are interdependentvthey interact

4、and influence each othervthey affect the level of economic well-being in the nation 2-8What Is A Political System?vPolitical system refers to the system of government in a nationvAssessed according tovthe degree to which the country emphasizes collectivism as opposed to individualism vthe degree to

5、which the country is democratic or totalitarian 2-9What Is Collectivism?vCollectivism stresses the primacy of collective goals over individual goalsvcan be traced to the Greek philosopher,Plato(427-347 BC)vToday,collectivism is equated with socialists(Karl Marx 1818-1883)vadvocate state ownership of

6、 the basic means of production,distribution,and exchangevmanage to benefit society as a whole,rather than individual capitalists2-10How Does Modern-Day Socialism Look?v In the early 20th century,socialism split into1.Communism socialism can only be achieved through violent revolution and totalitaria

7、n dictatorshipv in retreat worldwide by mid-1990s2.Social democrats socialism is achieved through democratic meansv retreating as many countries move toward free market economiesv state-owned enterprises have been privatized 2-11What Is Individualism?vIndividualism refers to philosophy that an indiv

8、idual should have freedom in his own economic and political pursuitsvcan be traced to Greek philosopher,Aristotle(384-322 BC),who argued that individual diversity and private ownership are desirable vindividual economic and political freedoms are the ground rules on which a society should be based v

9、implies democratic political systems and free market economies 2-12What Is Democracy?vDemocracy refers to a political system in which government is by the people,exercised either directly or through elected representativesvusually associated with individualism vpure democracy is based on the belief

10、that citizens should be directly involved in decision makingvmost modern democratic states practice representative democracy where citizens periodically elect individuals to represent them 2-13What Is Totalitarianism?v Totalitarianism is a form of government in which one person or political party ex

11、ercises absolute control over all spheres of human life and prohibits opposing political parties1.Communist totalitarianism found in states where the communist party monopolizes power2.Theocratic totalitarianism-found in states where political power is monopolized by a party,group,or individual that

12、 governs according to religious principles3.Tribal totalitarianism-found in states where a political party that represents the interests of a particular tribe monopolizes power4.Right-wing totalitarianism-permits some individual economic freedom,but restricts individual political freedom2-14What Is

13、An Economic System?vThere are three types of economic systems1.Market economies-all productive activities are privately owned and production is determined by the interaction of supply and demand vgovernment encourages free and fair competition between private producers2.Command economies-government

14、plans the goods and services that a country produces,the quantity that is produced,and the prices as which they are soldvall businesses are state-owned,and governments allocate resources for“the good of society”vbecause there is little incentive to control costs and be efficient,command economies te

15、nd to stagnate 3.Mixed economies-certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planningvgovernments tend to own firms that are considered important to national security2-15What Is A Legal Sy

16、stem?v The legal system of a country refers to the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtainedv There are three types of legal systems1.Common law-based on tradition,precedent,and custom2.Civic law-based on

17、 detailed set of laws organized into codes3.Theocratic law-law is based on religious teachings2-16How Are Contracts Enforced In Different Legal Systems?v A contract is a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties i

18、nvolvedv Contract law is the body of law that governs contract enforcementv Under a common law system,contracts tend to be very detailed with all contingencies spelled outv Under a civil law system,contracts tend to be much shorter and less specific because many issues are already covered in the civ

19、il codev Many countries have ratified the United Nations Convention on Contracts for the International Sale of Goods(CIGS)which establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between buyers and sellers who have their places

20、 of business in different nations2-17How Are Property Rights And Corruption Related?vProperty rights refer to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resourcevCan be violated through1.Private action theft,piracy,black

21、mail 2.Public action -legally -ex.excessive taxation or illegally -ex.bribes or blackmailing vhigh levels of corruption reduce foreign direct investment,the level of international trade,and the economic growth rate in a country vThe Foreign Corrupt Practices Act makes it illegal for U.S.companies to

22、 bribe foreign government officials to obtain or maintain business over which that foreign official has authority2-18Which Countries Are Most Corrupt?Rankings of Corruption by Country 20192-19How Can Intellectual Property Be Protected?vIntellectual property-property that is the product of intellectu

23、al activityvCan be protected using1.Patents exclusive rights for a defined period to the manufacture,use,or sale of that invention2.Copyrights the exclusive legal rights of authors,composers,playwrights,artists,and publishers to publish and disperse their work as they see fit3.Trademarks design and

24、names by which merchants or manufacturers designate and differentiate their products2-20How Can Intellectual Property Be Protected?vProtection of intellectual property rights differs from country to country vWorld Intellectual Property Organization vParis Convention for the Protection of Industrial

25、PropertyvTo avoid piracy,firms can vstay away from countries where intellectual property laws are laxvfile lawsuitsvlobby governments for international property rights agreements and enforcement 2-21What Is Product Safety And Liability?vProduct safety laws set certain standards to which a product mu

26、st adherevProduct liability involves holding a firm and its officers responsible when a product causes injury,death,or damage vWhen product safety laws are stricter in a firms home country than in a foreign country,or when liability laws are more lax,the firm has to decide whether to adhere to home

27、country or host country standards2-22What Determines A Countrys Level Of Economic Development?vTwo ways to measure levels of economic development are1.Gross national income(GNI)per person2.Purchasing power parity(PPP)involves adjusting GNI by purchasing powervNobel-prize winner Amartya Sen argues ec

28、onomic development should be seen as a process of expanding the real freedoms that people experience vthe removal of major impediments to freedom like poverty,tyranny,and neglect of public facilitiesvthe presence of basic health care and basic education2-23What Determines A Countrys Level Of Economi

29、c Development?v The United Nations used Sens ideas to develop the Human Development Index(HDI)which is based on v life expectancy at birthv educational attainmentv whether average incomes are sufficient to meet the basic needs of life in a country 2-24How Do Countries Compare on Economic Development

30、?Economic Data for Select Countries2-25How Does Political Economy Influence Economic Progress?vInnovation and entrepreneurship are the engines of long-run economic growthvInnovation and entrepreneurship require a market economy and strong property rightsvDemocratic regimes are probably more conduciv

31、e to long-term economic growth than dictatorships,even the benevolent kindvSubsequent economic growth leads to the establishment of democratic regimes2-26How Do Geography And Education Influence Economic Development?vCountries with favorable geography are more likely to engage in trade,and so,be mor

32、e open to market-based economic systems,and the economic growth they promotevCountries that invest in education have higher growth rates because the workforce is more productive2-27How Is The Political Economy Changing?vSince the late 1980s,two trends have emerged1.Democratic revolution(late 1980s a

33、nd early 1990s)vmany totalitarian regimes failed to deliver economic progress to the vast bulk of their populationsvnew information and communication technologies have broken down the ability of the state to control access to uncensored informationveconomic advances of the last 25 years have led to

34、increasingly prosperous middle and working classes who have pushed for democratic reforms 2.A move away from centrally planned and mixed economiesvmore countries have shifted toward the market-based model2-28How Free Are Countries Politically?Political Freedom in 20192-29How Free Are Countries Econo

35、mically?Distribution of Economic Freedom in 2019 2-30What Is The Nature Of Economic Transformation?vThe shift toward a market-based system involvesvderegulation removing legal restrictions to the free play of markets,the establishment of private enterprises,and the manner in which private enterprise

36、s operate vprivatization-transfers the ownership of state property into the hands of private investorsvthe creation of a legal system to safeguard property rights2-31What Does The Changing Economy Mean For Managers?v Markets that were formerly off-limits to Western business are now openv By identify

37、ing and investing early in a potential future economic stars,firms may be able to gain first mover advantages(advantages that accrue to early entrants into a market)and establish loyalty and experience in a countryv ex.China-1.2 billion people and India 1.1 billion peoplev However,the potential risk

38、s are largev It can be more costly to do business in countries with dramatically different product,workplace,and pollution standards,or where there is poor legal protection for property rights 2-32What Does The Changing Economy Mean For Managers?v Managers must consider1.Political risk-the likelihoo

39、d that political forces will cause drastic changes in a countrys business environment that adversely affects the profit and other goals of a business enterprise 2.Economic risk-the likelihood that economic mismanagement will cause drastic changes in a countrys business environment that adversely aff

40、ects the profit and other goals of a business enterprise 3.Legal risk-the likelihood that a trading partner will opportunistically break a contract or expropriate property rights2-33How Can Managers Determine A Markets Overall Attractiveness?vThe overall attractiveness of a country as a potential ma

41、rket and/or investment site for an international business depends on balancing the benefits,costs,and risks associated with doing business in that countryvOther things being equal,the benefit-cost-risk trade-off is likely to be most favorable in politically stable developed and developing nations that have free market systems and no dramatic upsurge in either inflation rates or private sector debt