Types of Totalitarianism:

1. Communist is a version of collectivism advocating that socialism can be achieved only through a
totalitarian dictatorship.
2. Theocratic is found in states where political power is monopolized by a party or group or
individual that govern according to religious principles. Most common form is based on Islam
3. Tribal occurs when a political party that represents the interests of a particular tribe (Africa)
4. Right wing generally permits some individual economic freedom but restricts indiv political
freedom, which could lead to a rise of communism
Economic Integration (Levels)

1. Political Union in which a central political apparatus coordinates the economic, social and
foreign policy of the member states
2. Economic Union involves the free flow of products and factors of production between member
countries and the adoption of common external trade policy, but also requires a common
currency, harmonization of members tax rates and a common monetary and fiscal policy.
3. Common Market has no barriers to trade between member countries, including a common
external trade policy , and allows factors of production to flow freely among member states.
Labor and capital are free flow.
4. Customs Union eliminates trade barriers between member countries and adopts an external
trade policy.
5. Free trade is all barriers to the trade of goods and services among member countries are
removed.
Types of Strategies
Localization: firms focus on local responsiveness
Global standardization focus on realization of location and experience curve economies
Transnational focus on simultaneously attaining location and experience curve economies, local
responsiveness and global learning. Some decisions are centralized and others decentralized.
International: create value by transferring core competencies from home to foreign
subsidiaries. Need for control is moderate.
Maastricht Treaty:
Treaty of Rome:
New Trade Theory
Hecksher-Ohlin
IMS
Experience curve
Efficiency Frontier
Bulldogs
Dirty Float
Pegged Exchange
Eurocurrency includes the yen, pound and the euro.
Types of structures: functional, product divisional, international, worldwide product
divisional, worldwide area and global matrix
Types of Differentiation
1. Vertical which refers to the location of decision making responsibilities within a
structure
2. Horizontal which refers to the formal division of the organization into subunits
3. Integrated Mechanisms which are mechanisms for coordinating subunits
Foreign Corrupt Practices Act
Desoto
Smith and Ricardo