Objectives:
Political and economic systems and linkage between them
Five levels of economic integrations
Use of strategic planning
Impact of NGOs (Non Governmental Organization)
Introduction:
Changing political systems
Moving toward democracy
Former communist bloc of Eastern Europe, converting to
free market systems from command economy advocate,
ideology
Ideology:
a set of integrated beliefs, theories, and doctrines that
helps to direct the actions of a society. For example; the
political ideology of USA is written in the constitution that
guarantees the rights of private property and the freedom
of choice. This ideology helped in laying the economic
political system (US Capitalism).
International business 1
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
International business 2
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
International business 3
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
Privatization in action:
• Countries with moderate per capita gross domestic
products, (Argentina, China Brazil, Mexico, and
Chile).
• Countries with advanced economies (US, Japan,
UK, Germany
• Have a strong feeling that their economies will
strengthen through privatization program
• Competition increases (positive outcome)
International business 4
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
Implementation problems
Economic integration requires that participants agree to
surrender some of their individual economic power,
examples as the authority to set tariffs and quotas
Free trade flow: ------- neither side can restrict the others
right to export these commodities
to its country
International business 5
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
International business 6
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
International business 7
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai International Politics Chapter # 4 (page 96-123).
The future:-
Other economic alliances:-
Andean pact
Mercosur
ASEAN
FTAA
Economic integration and strategic management
Strategic alliances and acquisitions
Telecommunication and electronics
Breweries
Localization of business operations
Products
Localization of profits
Localization of production
Localization of management
International business 8
Alan M. Rugman, Richard M. Hodgetts