lunes, 9 de agosto de 2010

THE IMPORTANCE OF POLITICAL SYSTEMS IN INTERNATIONAL BUSINESS

1) CONCEPT:
POLITICS:"
The activities associated with the governance of a country or other area, especially the debate or conflict among individuals or parties having or hoping to achieve power"*

SYSTEM:"A set of principles or procedures according to which something is done ; an organized scheme or method "**
IDEOLOGY:"A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy"***
POLITICAL SYSTEM:"Structures, processes, and activities by which a nation governs itself"****



2) QUESTION: Which are the most important Political Ideologies and which of them is better to do business?
ANSWER: John D. Daniels explains clearly, in his book International Business:Environments and operations, the three types of political ideologies in the world:
"TOTALITARIANISM:The belief that every aspect of people's lives must be controlled for a nation's political system to be effective.
ANARCHISM:The belief that only individuals and private groups should control a nation's political political activities. An anarchism views public government as unnecessary and unwanted because it tramples personal liberties.
PLURALISM: The belief that both private and public groups play important roles in a nation's political activities. Each group serves to balance the power that can be gained by the other"*****

These political ideologies are in a horizontal scale but at the same time each one can be divided according on how it manifests.
As to which of the three streams is the best to do business? I would say that everything depends on the type of business to be done, the market and needs to be covered, and the analysis of the advantages and disadvantages of each ideology presents according to the country in which it develops.
But for most companies is better to have operations in a country that has by political system the pluralism, because under this system, the economic, financial, cultural, legal and business environment is better.


3) POINT OF VIEW: In the field of international business is very important to know the cultures of the countries and with them the ideologies and political systems of each country, this is because in all countries, politics and culture are Closely related. Although in the before point I mentioned that each political ideologies may be the best or the worst for business, according to the analysis of several dimensions in this point I will explain more fully the ideology of pluralism and I will give some reasons to support why I think it is the best ideology to establish international business.
Because pluralism is between totalitarianism and anarchism, it can provide a balance of power, where the participation of government and people will be equal.
In my opinion one of the best way of seeing the pluralism is with the democracy, because this is a "Political system In which Government Leaders are elected directly by the wide participation of the people or by their representatives."******
The reasons why I think it's the best political ideology in a country to do international business, are basically related to: freedom of expression in which all citizens can express their political disagreements without any problem, periodic elections to ensure that nobody take the power for a long time, full civic and property rights, nonpolitical bureaucracies, and the most important thing in democracies maintaining stable business environment where capitalism, the private sector and the Government interact to ensure a stable and healthy economy. Countries with strong democracies are well regarded in the eyes of foreign investors, since them rely on in these countries because their capital and their investment will be safe, and producing better profits.

To give an example, I will talk about my country Colombia, although Colombia is a developing country,it is seen internationally as one of the countries with strong democracy in Latin America, as in recent years citizens has participated massively in the electoral processes, and the results have been very good because terrorism that made the guerrillas and groups outside the law has decreased significantly, which results in an increase in foreign investment, today Colombia is among the top 5 countries for investing in Latin America.
___________________________________________________________
*Oxford Dictionaries.(2010).Politics.[Online]: http://oxforddictionaries.com/view/entry/m_en_us1279217#m_en_us1279217
***Oxford Dictionaries.(2010).Ideology.[Online]: http://oxforddictionaries.com/view/entry/m_en_us1256937#m_en_us1256937
****Wild, John j. 2010.International Business The challenge of Globalization.Chapter 3: Politics, Law, and Business Ethics.p 80.
*****Wild, John j. 2010.International Business The challenge of Globalization.Chapter 3: Politics, Law, and Business Ethics.p 81.
******Wild, John j. 2010.International Business The challenge of Globalization.Chapter 3: Politics, Law, and Business Ethics.p 84

-Image 1: Education server dadalos.Teaching politics:political system.(2010).Available at: http://www.dadalos.org/politik_int/politik/systemtheorie.htm
-Image 2: Photobucket.Totalitarianism vs anarchism pictures.(2010).Available at: http://media.photobucket.com/image/TOTALITARIANISM%20vs%20ANARCHISM/drshrink/no-exit-libertarianism-anarchy-for-.gif

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