Impact of political environment on the international business
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Political factors constitute an important environment factor in International Business. Actually politics and economics are inter-related as one influences the other. That was the reason for early writers of Economics preferred to caption their work as Political Economy. Political system, political parties in power, political parties in the opposition, political maturity of the parties, number of political parties, political awareness of people, political stability and the like have great impact on the business environment in a country. The economic policies pursued by a Government are to a great extent the by-product of political environment that impacts businesses very often.
Basic Political Ideologies
Political ideology refers to, ‘the body of ideas, theories, aims and means to execute the ideas, adapt the theories and fulfill the aims that constitute a sociopolitical programme for action’. Depending on the mix of different ‘ideas, theories, aims and means’, there exists Pluralism, Democracy and Totalitarianism as alternative ideologies.
Pluralism: It involves coexistence of different ‘ideas, theories, aims and means’. Pluralism may be existing due to lack of convergence because the polity is made of different interest groups based on ethnicity, language, religion, race and so on and no one group is dominant enough to overrule the rest. Contrary to popular belief that existence of too many ideologies of different ethnic groups might break the polity into disarray and lead to eventual disintegration, such disintegration hadn’t happened. Western nations with capitalistic orientations have this style. The best example is the USA. Individuals have civil liberties and political rights. Civil liberties are measured in terms of freedom of press, equality of all individuals in the eye of law, personal social freedoms and freedom from extreme forms government indifference or interference. Political rights enjoyed depend on the degree of fair and competitive elections, the ability of people to endow their elected representative with real power, the ability of people to float political parties or competitive and competent political groupings to voice their ideologies and existence of safeguards on the rights of minorities.
Basic Political Ideologies
Political ideology refers to, ‘the body of ideas, theories, aims and means to execute the ideas, adapt the theories and fulfill the aims that constitute a sociopolitical programme for action’. Depending on the mix of different ‘ideas, theories, aims and means’, there exists Pluralism, Democracy and Totalitarianism as alternative ideologies.
Pluralism: It involves coexistence of different ‘ideas, theories, aims and means’. Pluralism may be existing due to lack of convergence because the polity is made of different interest groups based on ethnicity, language, religion, race and so on and no one group is dominant enough to overrule the rest. Contrary to popular belief that existence of too many ideologies of different ethnic groups might break the polity into disarray and lead to eventual disintegration, such disintegration hadn’t happened. Western nations with capitalistic orientations have this style. The best example is the USA. Individuals have civil liberties and political rights. Civil liberties are measured in terms of freedom of press, equality of all individuals in the eye of law, personal social freedoms and freedom from extreme forms government indifference or interference. Political rights enjoyed depend on the degree of fair and competitive elections, the ability of people to endow their elected representative with real power, the ability of people to float political parties or competitive and competent political groupings to voice their ideologies and existence of safeguards on the rights of minorities.
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