BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis Ren Directions: Ditferent countries use diferent economic philosooties and models based on many diferent variables, Complete this ‘worksheet using the directions within ta Quide you. Submit your completed worksheet in the "Assignment and Grades" tab in your course menu, When you have submited this ‘assignment for grading, plaase return to your module for a wrap-up ‘Open Mixed ‘Command Economic System Economic System Economic SystemBus 501 ulture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis What are the positive characteristics of each ‘economic system? 1. The open economie system ‘opens up the economy for better business opportunity The system allows free market ‘and production is determined by the laws of demand and supply (Economics in context Initiative . 2021), 2. The Open market create market expansion and Industraisation, the people are "ot limited by stingent laws and they can operate with less restraints (Economics in context Initiative 2021) 3, The consumers in an open economic system enjoy variety ‘of product options, price advantage due to fierce Competitions amongst producers. (Economics in Context Intiative, 2021) 4. The system creates an ‘opportunistic environment for those who has the opportunity te exploit rom scarce means. for the purpose of groater benefits or margin(Economics IncontextIntiative , 2021) 6. The system encourages innovation and continuous development. Merchants within 1. This system discourages and protects explotation of ‘coneumers for excessive gain, unrliable products, and ‘consumer rights and 50 on. 2. The system creates ‘Opportunity for market balance {and contol as well as promotes industialisation {rough policies that ‘encourages entrepreneurship ‘and market globalisation {Economies in context Initiative 2021) 3. The system promotes social \wel-being, income mobity, social index mobility and betteriving due to economic ‘growth and improved per ‘capital income through ‘coordinated distribution of ‘wealth and social amenities. (Economies in context Initiative 2021) 4. The systom protects labour rightsJabour exploitation and ‘opportunity for labour to seok {or justice and better living 5. Ithelps in promoting public- private partnerships, faciltating institutional cohesion and promoting overall national 1. The systems helps presone, protect, national ‘ulture and belief from the negative influence of market globalisation (Economics in [context nitive 2021), 2. The system encourages consistent, sustainable national development programs through smooth power transitionng ang ‘continuity (Economics in [context intatve , 2021) 3. The system discourages ‘and protects her people from income inequality, soci inequality and social class ‘gaps. (Economics in context Intative , 2021) 4. The system is contrally coordinated with adequate /suppot fom Government in terms of production decison, management decision and ‘growth potental. (Economies in context Intiative , 2021) 5. The system promotes average social well-being, ‘collectivism, eoctal unity and responsibilty. (Economies in context native 2021)BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis this society continuously seek | gains. (Economics in context compeitive advantage to creato| initaive , 2021) fa niche fer their product. (Economics in context initiative 2021)Bus 501 ulture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘What are the negative characteristics of each ‘economic system? 4. This system encourages labour and consumer ‘explitation, The ideology isto minimise as much cost- structure as possible to ‘maximise possible gains at the expense of other factors of production. (Economics in Context Initiative , 2024) 2. The system does not pay aitention to environmental ‘degradation as a result of Industraisation activites which are destructive tlie, 3. Entry barriers are very weak ‘which could be disastrous for growing local competiors 4. Lack of contro in the market creates opportunity for Counterfeiting, product imitation, Unreliable and weak quality products 5, Prices are set by the forces ff demand and supply wich ‘causes inflation and economic stagnation. (Economies in Context Intiative , 2021), 1. Economie program ‘continuity le nat guaranteed relative to possible exchange of power wth different goal mindset or policies by polticsl partes. The political parties may vary in économie agenda ‘which may hamper economic ‘growth and stabil. {Economies in context Intiative 12021) 2. Comuption and sett interest; itis easy for some large corporations to influence policies or suppor in favour of {themselves It could be ‘overlooked exploitation, tax evasion or infuencing policies 3, Social cultural influence, Since mixed ecenomies promotes globalisation, cutural ‘Sifts or influence is Bound to ‘set-in, this may affect the ethical standard or values of ‘some countries within this rele 4. Wak Income mobility ‘advantage: the system promotes the rich and largo corporations. These entties {got more attention and favour from the government which projects them at a better 4. Increased poverty index: In bid to centrally manage and [control the economic resource, sharing avalable resources /among the people against their ee wil with less consideration oF indivicuel inputs may lead to decrease efficiency and outputs which in tur affects optimum economic performance. (Economies in [context initiative, 2021) 2, Stagnation: This may occur fas a result of decrease n labour, depleting economic resources, slow technological advancement. 3. Lack of free-will and ‘reedor; The economy forbids unionism and wage nagatiaion. The system is [controlled such that the jgovernment determines what is payable as wages without ‘any power of negotiation from labour. (Economies in context Initiative , 2021) 4, Weak economie growth and [davolopment; the growth rate Jef the economy would ether be stagnant, slow or retarded 28 there would be no significant development as @BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis [advantage over the poor or ‘small organisations (Economies in context Initiative 202%) 5, Stagfation, This is asa result of sow economic growth 28 well high product prices Inflation May increase atthe ‘expense of stow economic ‘growth. (Economics n context Initiative , 2021) result of decline in innovation ‘28 wall as a bilateral rade 5, Poor infraetructural development as a result of ‘weak economic gains or low /government spending on infrastructure. (Economies in [context Iniative , 2021)Bus 501 ulture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis List one country as an ‘example of each economic system. ‘Name of Country: Finland ‘Name of Country: United ‘States Name of Country: Cuba ‘What are the political aspects ta consider befove daing business with each of the three counties you identified? 4. The political stabilty index in Finland is relatively good with fan average of 1.36 and a ‘minimum of 0.86 within a period 9f 23 years til 2020. (World ‘bank Group) Ths sigrifios that the county is relatively stablo ‘and considered @ good business destination, 2. The social welfare policies in Finland conforms tothe Nordic ‘model policy on social wel-wel- being grow, This signifies that there is adequate provision of social weifare services like healthcare, power and basic Infrastructures, This is also a {00d pointer for investors (Finana, 2013) 3. Finland is an EU member Slate with trade relations with the WTO. All trade regulations within EU states exist with Finland, Finland enjoys ‘multilateral trade with EU Countries based on the EU trade tax policies. As an open market economy. Finland would be attractive to so many Investors within the EU member 4. The politcal stably Index in the US is relatively low which could generate skepticism doing business in the county. ‘The average stabiliy ndox within a period of 23 years is (0.44 withthe minimum at = 0.22, -026 le considered week While 2.5 le considered strong (The wold bank) 2. The social wetfare policies in| the US is fairly good but not es. ‘good as otter developed ‘Counties. The private institutions for the provision of Social welfare supports ‘Athough, this signties tat basic social infrastructure can be accessible, (kovelman et al, 2012) '3.US foreign trade regulations Tavours some selected ‘counties with Free Trade ‘Agreements, Countries within this circle will enoy tax free ‘exports and imports on products categories covered ‘under the FTA regulations. (kovelman etal, 2012), 1. The political stati index of Cuba is avoragely good since it has only operated a single party system. Since the inception of the ‘communist regime in 1959. ‘The political arena has been ‘onsideraby stable for the past 20 years, The social welfare ofthe ‘environment is poor. Basic social amenities are ‘expensive fo access. No significant infrastructure to support development and ‘growth. (Economics in Context Initiative , 2021) 3, The environment practices protectionism and planned socialism which relatively do not give the opportunity to attract business outside the ‘country. The Government is, keen on building extensive economic growth wit intemal resources which at imes might not be sufficient. (Ecanomics in ‘context Initiative 2021)BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis slates. (Finland Postical Stabilty-data, chart, nd.)BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘What are tho legal aspects to ] 1. In 2019, The Finnish 1. In the US, there are several 1, In Cuba, foreign direct consider before doing Companiae ACT was amended | eetreions on the description | investments must be inthe business with each of the | to remove minimum share [of which eector foreign | form ofa joint venture, three counties you identifed? | capital of €2600 for limited | investor can investin International eceneme Tiabiity companies with the | Investments in hese sectors | association agreements or intention to promote small are restricted mainly for US __| totally foreign capital company. private businesses, The ‘tizens oF US controled ‘The trade laws of Cuba are ‘amendment isnot applicable to |entites. This could be seen | found inthe public lability companies. ‘under foreign investment and | Bustamante Code, which acts national secutty Act of 2007 | as the trade Act in Cuba. 2. Finland promotes Innovation | (FINSA) as well Committee on | Foreign investors are allowed and protects Intellectual Foreign investments inthe | to ade n any sector in Cuba propery rights. The Finnish | united states( CFIUS) except fr health, education Government conforms to ‘and the armed forces. different applicable laws under _|2. The US patent ights is been | (Sanchelima, 2001) IP protection, National Board of | covered and monitored under Patents and Registration US Patent and Trademark |2. The intelectual property (NBPR) or with the European [Office (USPTO). The US | rights in Cuba is protected by Patent Otfice (EPO) patent rights covers the ‘The Cuban Industrial Property structural and functional aspect| Office (OCPI) under the patent 3. Employees / labours ‘of an invention vnich isnot | laws cocfied in Decree-Law 68| Protected by collecive limited to ideas & methods, | of May 14, 1983. An IP can be bargaining agreement in manufacturing, process etc. | protected through a fst fling Finland. Employee's interests ‘advantage with 3 contest are well protected, private or |3. Employees in the US are as | within 60 days of filing public under collective wel protected under the (Sanchelima, 2001), bargaining and agreement law | collective bargaining ‘even wen the company is net | agroementinterms of job | 3, Labours of any foreign Lunionised. (Suvi knaaplia etal, | security, remuneration, inyestment in Cuba must be @ 2019) ‘occupational safety and heath | ctizon or a permanent ‘under the Nabonal Labor | residence in Cuba, Relations Act (NLRA), the Taft-| Employment and terms of Harley Actand state right to employment must be adviced work laws, through the Ministry ef Foreign "Trade and Investment and authorised by the Ministry ofBUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis Labour and Social Secunly. (Senehelma, 2001)Bus 501 ulture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘What are the economic aspects to consider botore doing business with each of the thvee countries you identifies? 4. The GDP per capita in Finland is about 248% of the world's average. The overall {economic growth indax of Finland signifies that the economic sate is healthy with fan average GDP growth rate of 4.2% from 2021 til date (Siimes et al, 2020) 2. Finland Household per Capita is about §27,000 USD in 2020 which signifies high propensity to consume due to high aispasabie income. Housenoxd consumation is ‘about 85% ofthe country’s average expenditure, (Ross, 2020), 3. The inflaton rate in Finland is Averagely stable around 3.2% in Dacember 2021. The inflation has been projected at an average of 1.8% in 2022. Interest rate is averaged at 4.72% from 1998 til date. This is. a good pointer for investors and future bortowers. (Simmes ‘tal, 2020), 1. The US GDP per capita is abut 463% of the world s ‘average. The US economy is regarded as the number one ‘economy in the world, recording ownership of about 421 compenies ofthe work's fortune $00 companies. The vabilly of Us Marketi further proved by the numbers of World largest companies by market capitalisation, the Unites States houses about {60% of te fist 10 companies (Trading economics, 2021) 2. The US household per ‘capita income is one of the best in the worl, The current household per capita is about $33,700 as at DEC 2020 Historically, the US has the highest marginal propersity to ‘consume (MPC) which was ‘approximated to about 5%. ‘This sgnifes that there is a high rate of disposable income in the US. (Kovelman et al. 2012) 3. The Unit States has been making efforts to manage thelr Interest rates and inflation rate, ‘The inflation rate inthe US is ‘about 7.5% and inlrest rate le at 0.25% wich has been relatively stable since 2024 4. Cuba is next to Venezuela in {terms of economic freedom from amongst the regions in ‘America with 29.5 which indicates a weak fiscal heath [Cuba has lost 4.4 points since 12017 making it ranked below the “epressed" category 2. The Gross Domestic product [of Cuba as at 2019, was about 4108 bilion USD making tat the 1Tth positon out of 32 regions in america, The /Annual growth rate recorded fas at 2021 is -17.1% which indicates improvement in leconomy due to trade and investments efter the great ht ‘of Covid 19. A major improvement of 7.8% growth [occurred in July 2021 after 2 {decine of about 13.1 % in January same year. 3. The GOP per Capita in [Cuba as at 2019 stood at '8026.80USD after reaching the highest of alltime since 1970 at 8040.99 USD in 2018. thas since experienced a decline which has been projected to reach 6620.00USD in 2022.BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis Low interest rates can be favourable and unfavourable for the US economy. ‘Kovelman etal, 2012)Bus 501 ulture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘What are the cultural aspocts ta consider before doing businase with each of the three counties you identifed? 4. The Finns are highly ‘educated people, they value fedueaton and iteracy. Economic competitveness is a ‘major strength ofthe Finns, Hence they take general ‘education and literacy very Seriously, 999 of the population| In Finland ave literate. 2. The Finns are not socially exposed to other cultures hence there might be sight cultural misunderstanaings when within foreigners. However, the Finns are highly pola and respectul people. They are accommodating end adorable 3. The majo ofthe Finns population ve in Urban areas ‘bout 2/3 of the entire Population Ive inthe urban Centers. Urbanisation obviously does not atlect worksite balance. Many Finns now profor to work partie as well 8s remote working 4. The US is considered the home of immigrants. America houses the majority ef immigrants from all parts f the world which indicates the tolerance ratio of Americans ‘and the open perception to ‘other cultures, America treats ‘and telerates foreigners with respect as everybody is ‘expected (0 enjoy equal rights. 2. America’s approach to business is unique. They take business first. Which means, ‘they would net compromise personal sentiments above business decisions, They take business ethics very setiously ‘and would never be late for 2 business meeting, 3. America tolerates all religious backorounds. without discrimination. Although, some misunderstanding may occur ‘due to some extremist activity but not a general bohaviour of al, Since America houses all Falgious beliefs without fasitetions, there might be a wide range of heterogeneous taste ethics and culture within the US. 4. Cubans ave not hostile fo foreigners. Cuba gonerates an ‘average of 10 billion USD from {tourism and tourists, This indicates that Cubs welcomes foreigners who are tourists to enjoy the serenity of ther envionment. 2. Due to the cutural background ofthe communist, there's no pronounced hierarchical class amongst the people, However, Cuban's appreciate being respected. Many get frustrated due to the bureaucratic nature of processes and operations. which makes applications and rade relations cil, 3 Cuba was formerly an atheist stata under the rule of (Castro, The 1992 amended ‘constitution renamed Cuba as fa secular state with no interterence of religion or religious beliofs on governance or constitutional decisionsBUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘Write @ 250-500 word response in which you ‘aderess the fllowing prompt: Which ofthe three countries would you most want to do business with? Why? Your Chesen Country FINLAND, Provide your 260-500 word explanation for why you would want to do business in this country. Finland has been praised over the years forts excellent business climate for both home = Companies and foreign investments. The country has recorded so many landmark records relative to social well-being or her people, strong better ie index, socal equalty as well good social progress inde. Infect, wnat would you expect from a well-functioning transparent government with effective state insttutions, stuctures, iffestructures and a dependable state judiciary. No wonder it was ranked the happiest country nthe warld by the World Happiest Index, 2021. ‘These indexes are pointrs to the fact that sustainable business grout can be achieved in Finland. Lite dc you know that word big brands lke Nokia, Kone, Rovio are companies nurtured in Finland, The success of these companies can be accounted for based on the human and ‘material resources that engulfs the creaive land called Finland, (Palomk, n4.) Social Progress Index: Finland tops the world in socal progress index with about 90.9%. This ‘measure was taken from tivee dimensions: Basic human neads, Foundations of well-being and Opportunity Basc human needs measure the provsons of the land government based on Nasow'sneeds verarchy: + Nutrition and baste medical care, + Water & Sanitation, + Shelter and + Personal safety. Foundations of well being also shows provisions in access to + Basie Knowledge + Information and communication + Health and Wellness + Environment QualityBUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis ‘Opportunity which refers to opportunites opan to citizens and foreign investors which are + Personal freedom and Choice + Access to advanced educationBUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis + Tolerance and Inclusion + Personal rights {As 9 result, Finnish environment becomes more attractive and professional fr Intemational trade {and ease of doing business. The provision and availabilty of basic socal amenities and Infrastructures would boost and ennanca rade and investments as the avalablly of the duo wl Improve factors of production and reduce associated cost stuctures, (Economies in context Initive , 2021) ‘Market Potential: The Population of Finland is about 55 milion people with high propensity to ‘consume due to igh disposable income, More so, 23 of this population resides in the urban Cites indicating huge merket availabilty for business. Furthermore, Finland has multisteral rade relationships with EU countries, OEDC counties which makes business globalisation much easter HWrequired.(Vsininen, 2021) ‘Stable politcal climate for sustainable growth: The Climate of Finish society has recorded sabilty forthe past 20 years. With an average annual GOP growin rata of 2.11% from 1976 til 2021, Consistent economic and trade policies. incentives and support for corporate businesses, Finland's corporate tax is amongst the lowes! in the EU wit just about 20%, an agile educated workforce and advanced facies for innovation and growth, Protection of Rights and Intellectual properties: Finland is protected by the National Board of Patents and Registration (NBPR) or withthe European Patent Ofice (EPO) securing the righs of Innovators and researchers designing exceptional competitive models to support their business / operations. In conclusion, the availabilty of platforms such as the above mentioned in Finland makes it more than atirectivo to set up sustainable business operations, (Vaaninea, 2021)BUS 5010: Culture in a Global Business Environment ‘Module 2 Worksheet: National Differences Analysis References Economics in Context Initiative, 2021, “Comparative Economie Systems: Capitalism and Socialism in the 2Lst Century.” Aa ECL ‘Teaching Module on Social and Economic Issues, Global Development Policy Center, Boston University Finlond (2013, June 28). Business Culture, htps/businesscultureorg/nortern-europe island businessetiquete Finlond Potical stability - data, chart. (a. TheGlobalEconomy com. Intpe|theglobalaconomy:comFinland/w political stability kovelman, R,, Walsh, T.,R West, P., & S Zengerle,L (2012, March 1). Doing business in the United States, Practical Law. ‘tp: uk practicallaw:thomsonreuters.comy/8-S01-3531 ?uansitionType~Default&contextData~ sc Defaul) firstPage-trie Palomiki, M.(t.). 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Journal af Management Research and Analysis, 14), 2277. hnips/doi.org10.5958/2394-2770.2015.00006. ‘Suvi Knaaplia lisa Koskela, & Seppo Havia, (2019, January 25), Employment & labour Iaw in Finland. Lexology.com. [nttps| www lexology.comlibrary detail aspx?2=b03c5a90-2880-4194-2967-GeceaaS61e7e Trading economics. (2021). United States Fed Funds Rat. Tradingecanomics com. bitpstradingsconomics comited- staresinterestrate ‘Vannen, H, (2021, November 15). Whar Finfand's Business Success Can Teach The Rest Of The World. Fosbes. nips www. forbes.comv/sites/heikkivaananen/2021/11/1S/what-finlands-business-success-can-teachthe-restoFthe- world?s 466667842