NATIONAL DIFFERENCES IN A

POLITICAL ECONOMY

De Borja, Queenie M.
BSA 3-1
 POLITICAL ECONOMY OF THE
COUNTRY

•Political economy is a social science that

studies production, trade, and their
relationship with the law and the
government. It is the study of how
economic theories affect different socio-
economic systems such as socialism and
communism, along with the creation and
implementation of public policy.
 GLOBAL POLITICAL
ECONOMY

•Global political economy is a field

of study that deals with the
interaction between political and
economic forces. At its centre have
always been questions of human
welfare and how these might be
related to state behaviour and
corporate interests in different parts
of the world.
 H O W D O P O L I T I C A L , E C O N O M I C , L E G A L S Y S T E M S O F A C O U N T RY D I F F E R
AMONG COUNTRIES?

POLITICAL ECONOMIC LEGAL SYSTEM

• Democracy • Market economy (demand and • Common Law

• Related to Individualism.
• Totalitarianism (socialism
and communism)
• Related to Collectivism.
pricing determined by • Civil Law
individuals, not government)
• Command economy • Theocratic Law
(government determines
production and pricing)
• Mixed economy (protects
private property, but
government interference for
social aims)
 H O W D O P O L I T I C A L , E C O N O M I C , L E G A L S Y S T E M S O F A C O U N T RY C H A N G E
DURING OUR TIMES?

• 1.Two trends that had taken place since 1980:

a. Democratic revolution
New information and communication technologies made it hard for the
state to control access to uncensored information.
b. Deviating from centrally planned and mixed economies
Countries shifted towards market-based model
HOW DO POLITICAL, ECONOMIC, LEGAL SYSTEMS OF A COUNTRY
INFLUENCE BENEFITS, COSTS,
RISKS OF BUSINESS?
• it's more costly to do business in
countries with dramatically
different product, workplace and
pollution standards.
• It is risky for businesses to open
on areas where there is poor legal
protection for property rights
INFLUENCE ECONOMIC
PROGRESS
• Innovation and Entrepreneurship are the
engines of long-run economic growth.
• Innovation and Entrepreneurship require a
market economy and strong property rights.
• Democratic regimes are probably more
conducive to long-term economic growth than
dictatorships.
• Subsequent economic growth leads to the
establishment of democratic regimes.
 WHAT ARE ETHICAL ISSUES THAT ARISE FROM DOING
BUSINESS INTERNATIONALLY?

• Differences in Employment Laws

• The Challenges of Corruption
• Human Rights Laws
• Pollution and Environmental Concerns