Because learning changes everything.® International Management: Culture, Strategy, and Behavior Part One: Environmental Foundation Chapter 2: The Political, Legal, and Technological Environment © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Political Environment The political system or system of government in a country greatly influences how its people manage and conduct business. • Underlying the governmental actions is the ideology of the beliefs, values, behavior, and culture of the nation and its political system. • A political system can be evaluated along two dimensions. • The first dimension is the ideology of the system. • The second measures the degree of individualism or collectivism. © McGraw-Hill Education 2 Ideologies Adopters of individualism adhere to the philosophy that people should be free to pursue economic and political endeavors without constraint. • Government interest should not solely influence individual behavior. Collectivism views the needs and goals of society at large as more important than individual desires. • Societal goals and the decision of how to keep people focused on them differ greatly among national cultures. Socialism is a moderate form of collectivism in which there is government ownership of institutions, and profit is not the ultimate goal. • Social democracy refers to a socialist movement that achieved its goals through nonviolent revolution. © McGraw-Hill Education 3 Political Systems In a democracy, the government is controlled by the citizens. In totalitarianism, one party controls political and human life. • Directly or through elections. • Power is often maintained by suppression. • Cannot exist without at least a two-party system. • They believe every citizen should be involved in decisionmaking processes. • Individual freedoms are secured. © McGraw-Hill Education • The most common form is communism. • Some parties govern based on religious principles. • “Right-wing” allows for some economic (but not political) freedoms. 4 Figure 2-1: Summary of Arab Spring Uprisings Access the text alternative for this image. © McGraw-Hill Education Source: Original graphic by Professor Jonathan Doh. 5 Legal and Regulatory Environment There are four foundations on which laws are based around the world. • Islamic Law: derived from interpretation of the Qur’an and the teachings of the Prophet Muhammad. • Found in Islamic countries in the Middle East and Central Asia. • Socialist Law: comes from the Marxist socialist system and continues to influence regulations in former communist countries. • Common Law: comes from English law and the foundation of the legal system in the U.S., Canada, England, Australia, New Zealand, and other nations. • Civil or code law: derived from Roman law • Found in non-Islamic and non-socialist countries such as France, some countries in Latin America, and Louisiana in the U.S. © McGraw-Hill Education 6 Basic Principles of International Law International law is less coherent than domestic law. • Principle of sovereignty—governments can rule as they see fit. • There are three types of jurisdictional principles. • Nationality principle, territoriality principle, protective principle. • Doctrine of comity—mutual respect for the laws, institutions, and governments of other countries in jurisdiction over their own citizens. • Act of state doctrine—acts of other governments are considered valid by U.S. courts, even if such acts are illegal/inappropriate in the U.S. • Countries may refuse admission of foreign citizens and impose restrictions on their conduct, travel, lodgings, and business they may do. • A forum for hearing and settling disputes is a principle of U.S. justice as it applies to international law. © McGraw-Hill Education 7 Examples of Legal and Regulatory Issues Specific laws and situations directly impact international business. • Financial services regulations. • The integrated nature of financial markets means a regulatory failure in one jurisdiction can impact other jurisdictions. • The Foreign Corrupt Practices Act (FCPA)—it is illegal to influence foreign officials through personal payment or political contributions. • Restrictive foreign bureaucracies are a big problem facing MNCs. • Privatization of state-owned enterprises opens opportunities for MNCs. • Countries use their legal and regulatory policies on international trade to affect the international management environment. © McGraw-Hill Education 8 Technology in the Next Decade © McGraw-Hill Education The Internet of Things. Blockchain technology. AI and Machine Learning. Robotics paired with any of these. 9 Technological Environment and Global Shifts in Production Technological advancements connect the world and aid in the increased quality of products, information gathering, and R&D. • Hunger and poor health care are worldwide issues—biotechnology is working to raise the standards. With new technological advancement: • MNCs are trying to improve e-business operations in B2C transactions. • Business costs should decline. • Developing economies are “leapfrogging” telecommunications technology. • Productivity should increase. • In the future, technology has the potential to displace employees in all industries. • Prices should go down. © McGraw-Hill Education 10 Because learning changes everything. www.mheducation.com © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. ® 7/5/23, 11:31 AM Operations Management Name Discussion 25 Description 25 points Rubric Detail Levels of Achievement Criteria Exceeds Expectations Meets Expectation Some Expectations Unsatisfactory Quantity 5 to 6 points 3 to 4 points 1 to 2 points 0 to 0 points Initial post and two other posts of substance. Initial post and one other post of substance. Initial post only. Did not participate. 5 to 6 points 3 to 4 points 1 to 2 points 0 to 0 points Demonstrates excellent knowledge of concepts, skills, and theories relevant to the topic. Demonstrates knowledge of concepts, skills, and theories. Demonstrates satisfactory knowledge of concepts, skills, and theories. Did not participate. 5 to 6 points 3 to 4 points 1 to 2 points 0 to 0 points Discussion post(s) exceed expectations in terms of support provided and extend the discussion. Discussion post(s) meet expectations in terms of support provided. Statements are satisfactory in terms of support provided. Did not participate. 6 to 7 points 4 to 5 points 1 to 2 points 0 to 0 points Writing is well organized, clear, concise, and focused; no errors. Some significant but not major errors or omissions in writing organization, focus, and clarity. Numerous significant errors or omissions in writing organization, focus, and clarity. Did not participate. Content Support Writing View Associated Items https://lms.seu.edu.sa/webapps/rubric/do/course/manageRubrics?dispatch=view&context=course&rubricId=_77298_1&course_id=_39832_1 1/2 7/5/23, 11:31 AM Operations Management Print Close Window https://lms.seu.edu.sa/webapps/rubric/do/course/manageRubrics?dispatch=view&context=course&rubricId=_77298_1&course_id=_39832_1 2/2 
Purchase answer to see full attachment