The main challenges for businesses in China are:
Identify the different legal systems. Understand government-business trade relations and how political and legal factors impact international business.
Why should businesses care about the different political and legal systems around the world? To begin with, despite the globalization of business, firms must abide by the local rules and regulations of the countries in which they operate.
Until recently, governments were able to directly enforce the rules and regulations based on their political and legal philosophies.
The Internet has started to change this, as sellers and buyers have easier access to each other. Nevertheless, countries still have the ability to regulate or strong-arm companies into abiding by their rules and regulations. As a result, global businesses monitor and evaluate the political and legal climate in countries in which they currently operate or hope to operate in the future.
What Are the Different Political Systems? The study of political systems is extensive and complex. A political system The system of politics and government in a country; it governs a complete set of rules, regulations, institutions, and attitudes.
It governs a complete set of rules, regulations, institutions, and attitudes. There are more than thirteen major types of government, each of which consists of multiple variations. At one end of the extremes of political philosophies, or ideologies, is anarchism A political ideology that contends that individuals should control political activities and public government is both unnecessary and unwanted.
In reality, neither extreme exists in its purest form. This combination is called pluralism A political ideology that asserts that both public and private groups are important in a well-functioning political system. Although most countries are pluralistic politically, they may lean more to one extreme than the other.
In some countries, the government controls more aspects of daily life than in others. While the common usage treats totalitarian and authoritarian as synonyms, there is a distinct difference.
For the purpose of this discussion, the main relevant difference is in ideology. Authoritarian governments centralize all control in the hands of one strong leader or a small group of leaders, who have full authority.
These leaders are not democratically elected and are not politically, economically, or socially accountable to the people in the country.
Totalitarianism, a more extreme form of authoritarianism, occurs when an authoritarian leadership is motivated by a distinct ideology, such as communism. In totalitarianism, the ideology influences or controls the people, not just a person or party.
Authoritarian leaders tend not to have a guiding philosophy and use more fear and corruption to maintain control. Democracy A form of government that derives its power from the people.
Democratic governments derive their power from the people of the country, either by direct referendum called a direct democracy or by means of elected representatives of the people a representative democracy.
Democracy has a number of variations, both in theory and practice, some of which provide better representation and more freedoms for their citizens than others. It may seem evident that businesses would prefer to operate in open, democratic countries; however, it can be difficult to determine which countries fit the democratic criteria.
As a result, there are a variety of institutions, including the Economist, which analyze and rate countries based on their openness and adherence to democratic principles.
There is no consensus on how to measure democracy, definitions of democracy are contested and there is an ongoing lively debate on the subject. Democracy can be seen as a set of practices and principles that institutionalise and thus ultimately protect freedom.
Even if a consensus on precise definitions has proved elusive, most observers today would agree that, at a minimum, the fundamental features of a democracy include government based on majority rule and the consent of the governed, the existence of free and fair elections, the protection of minorities and respect for basic human rights.
Democracy presupposes equality before the law, due process and political pluralism. Several things stand out in the index. Only two Asian countries are represented: Japan and South Korea. Firms need to assess the balance to determine how local policies, rules, and regulations will affect their business.
How stable is the government? Is it a democracy or a dictatorship? If a new party comes into power, will the rules of business change dramatically? Is power concentrated in the hands of a few, or is it clearly outlined in a constitution or similar national legal document?
How involved is the government in the private sector? Is there a well-established legal environment both to enforce policies and rules as well as to challenge them?In this report I will compare the UK and Brazil in terms of political, legal, economical and social factors.
Brazil is a part of BRIC, that refers to the fast growing developing economies of . The United Kingdom is the third most populated state in the European Union and, despite an economic slowdown, there is high demand for commercial and residential real estate, particularly in rental markets.
Business, now-a-days is vitally affected by the economic, social, legal, technological and political factors. These factors collectively form business environment. Business environment, as such, is the total of all external forces, which affect the organisation and operations of business.
factors Economic Findings Environmental Impacts Social Impacts Legal-Regulatory Effects Sugar, shoes and leather goods, steel and iron, and vegetable goods (cocoa, rice, tobacco, Economic/Trade: • Brazil is expected to be one of the major partners in the Free Trade Area of.
Political factors Political risk, The United Kingdom is a capitalist democracy with a health care system that tries to Learners should understand the political, social and cultural issues that help to determine healthcare policy and be able to critically assess the policies and practice in one specific context Unit Level 6 Unit Code.
Economic Overview. Brazil is the world's eighth largest economy. After almost a decade of strong growth (), Brazil entered into the worst recession in .