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Political System and Its Influenze on Business

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Submitted By shalinis
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Political system and its influence on Business

The basic role of a political system is to integrate the parts of a society into a viable functioning unit, bringing together people of different ethnic or other backgrounds and allow them to work together to govern themselves.The political policies implemented are often influenced by MNE managements, who are greatly affected by such policies. This is often done in the interest articulation stage through the CEO of an MNE and their employees.

The basic tenants of democracy include the freedom of opinion, Expression,press and organization,Elections,limited terms for elected officials an independent court system,respect for personal property,nonpolitical bureaucracy and defense, infrastructure, and accessibility to the decision-making process. Presidential Form,Parliamentary System,Various Combinations.Basic Political Ideologies includes Democracy,
Democratic systems involve wide participation by citizens in the decision-making process.In representative democracy, majority rule is achieved through periodic elections.Factors for evaluating freedom are Political rights and Civil liberties. Political rights include Fair and competitive elections Power for elected representatives Ability to organize Safeguards on rights of minorities

In a totalitarian system, decision making is restricted to a few individuals.Theocratic totalitarianism is the form prevalent in Muslim countries. With secular totalitarianism, control is often enforced through military power.Communism is a form of secular totalitarianism that relates political and economic systems.

The Impact of the Political System on Management Decisions.There is a dichotomy between governmental control and consumer control of the political system and the economy.Managers need to understand the critical functions that a government

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