...Learning objectives • Understand how the political systems of countries differ. • Understand how the economic systems of countries differ. • Understand how the legal systems of countries differ. • Be able to explain what determines the level of economic development of a nation. • Discuss the macro-political and economic changes taking place worldwide. • Describe how transition economies are moving towards market based systems. • Articulate the implications for management practice of national differences in political economy. This chapter discusses differences in national political, economic, and legal systems, highlighting the ways in which managers in global settings need to be sensitive to these differences. Political differences are described along two dimensions: collectivist vs. individualist and democratic vs. totalitarian. Economic systems are explored in terms of market characteristics: market economies, command economies, and mixed economies. Legal systems are discussed in terms of the protections they offer for business: intellectual property, product safety, liability and contracts. The opening case explores the political and economic situation in Venezuela since Hugo Chavez was elected president in 1998. The closing case describes the challenges facing Indonesia, a vast country populated mainly by Muslims that stretches over 17,000 islands. Indonesia, after decades of corruption and a near dictatorship...
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...Canada economic system is also referred to mixed economy because it involves both private and public ownership of resources, and good and services are produced and provided by both the government and privately owned companies. Canada’s system is often referred to a capitalist system because we allow and also encourage the private ownership of capital, that is, the plants, factories, equipment, and so forth that are used to produce and provide goods and services. India has a Mixed Market economy meaning it uses a variety of government regulation to control the economy, but relies primarily on market that forces to set prices and demand and uses general principles of capitalism. India is having a mixed economic structure. It is neither fully capitalist nor fully socialistic. It is neither completely an open system nor a fully free market system. The key variables in the choice of this economic design are: people's welfare, equitable distribution of wealth and income, a logical link between employment and incomes, restraining monopolies and concentration of power and wealth, and supporting health and education sectors through government subsidies and political strength. India has a mixed economy. Half of India's workers rely on agriculture, the signature of a traditional economy. One third of its workers are employed by the services industry, which contributes two-thirds of India's output. The productivity of this segment is made possible by India's increasing move...
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...Indonesia Introduction Indonesia is a country located in Southeastern Asia between the Indian Ocean and Pacific Ocean. It has a strategic location astride major sea lanes and is an archipelago of 17,508 islands, some of which border Timor-Leste, Malaysia, and Papua New Guinea. The government system is a republic. The chief of state and the head of government is the President. Indonesia has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Indonesia is a member of the Asian Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN). Key Economic Facts Budget Expenditures: Budget revenues: Debt - external: Distribution Of Family Income GINI Index: Exports: GDP per capita, PPP: GDP, PPP: Imports: Industrial production growth rate: Inflation rate (consumer prices): Labor force: Population: Unemployment rate: $.15 trillion (2011) $.14 trillion (2011) $.19 trillion (2011) 36.80% (2009) $201.50 billion (2011) $4,667.96 (2011) $1.13 trillion (2011) $166.10 billion (2011) 4.10% (2011) 5.40% (2011) 117.40 million (2011) 248.65 million (2012) 6.60% (2011) Risk Assessment (Provided by Coface) Country rating: B - Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable. Business Climate rating: C - The business environment is difficult. Corporate...
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...Australia and New Zealand: Doing business with Indonesia SECTION 1 CULTURAL DIFFERENCES Numerous Australian and New Zealand organisations are looking for business opportunities in Asian nations as Asian nations are in developing stage and they offer limitless business chances to officially created countries. Here, we are going to examine the business development of Australian and New Zealand associations in Indonesia. To start a business in a foreign country, it is crucial to understand the culture, social, customs and language of the country to be successful (Morrison & Conoway, 2006). Culture Hofsetede has sorted social contrasts into three wide classifications i.e. National society, Business Culture and Organizational society. National society delineates the political and social limits of the country. Business society includes rules, regulations, qualities and convictions of working together in a specific society (Deresky & Christopher, 2012). National Culture measurements are as per the following: 1. Power Distance 2. Independence/Individualism versus Collectivism 3. Manliness versus Femininity 4. Vulnerability/Uncertainty Avoidance 5. Long term Orientation 6. Indulgence (Kullen & Parboteeah, 2014). The visual chart joined in Appendix 1 indicates how these three nations vary from each other on the premise of aforementioned measurements. Indonesia is at high power separation as contrast with other two nations which implies more reliance...
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...and John Ravenhill, “Cause and Consequences of the Asian Financial Crisis,” in Gregory W. Noble and John Ravenhill, eds., The Asian Financial Crisis and the Architecture of Global Finance, ed., Cambridge, 2000, pp. 1-35 [pic] Summary: The Asian financial crisis resulted from the sudden flight of large amounts of capital from Asian countries that lacked adequate systems of prudential regulation, and whose foreign exchange rate proved disastrously brittle. The crisis was unique in its unprecedented severity of corporate distress and banking sector problems, and its quickness in recovery from the crisis. While technical improvements in the financial system were institutionalized, the crisis did not bring fundamental structural revisions, in both political and economic arena. Doughty resistance from entrenched ideologies and interests in the U.S, the U.K, and the IMF prevented the reforms and rearrangements in the international financial system from happening. ➢ The East Asian crisis---the severest jolt to the world economy since the Oil Shock in early 1980s. ➢ Asian Crisis ---spread from Thailand to Indonesia, the Philippines, Malaysia and Korea. Sequences---Export decline ( loss of investors’ confidence( Currency devaluation due to lack of foreign reserve( IMF emergency fund requiring tight budget and monetary policy( increase in non-performing loans and damage in domestic industries ➢ Drastic increase in international private capital inflow in the ‘90s was key to...
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...Country and Culture Assignment (South Korea) City University Ivan Wong BSM 404 My name is Ivan Wong and I come from Indonesia. In this article, I will write a review and comparison between 2 countries; those are Indonesia and South Korea. Republic of Indonesia with a motto of ‘Bhinneka Tunggal Ika’ (Unity in Diversity) is a sovereign country located in Southeast Asia and Oceania. Indonesia stands in latitudes 11°S and 6°N, and longitudes 95°E and 141°E. It consists of 34 provinces and 17,508 islands (approximately around 6000 islands are inhabited). Jakarta is the capital city of Indonesia or also known as ‘Special Capital Region of Jakarta’ and it is located in Java Island. Rainfall is the main variable of Indonesia’s climate and it has mostly tropical climate. Temperatures in Indonesia are listed as; coastal plains averaging 28 degree Celsius, inland and mountains averaging 26 degree Celsius, and higher mountain regions averaging 23 degree Celsius. There are only 2 seasons in Indonesia, dry season (June to September) and rainy season (December to March). Indonesia is one of those countries that using presidential system, the country is lead by president and vice president. President of Indonesia is the head of state, head of government, commander in chief, director of domestic governance, policy making, and foreign affairs. The president usually chosen by citizens through presidential election which first was held in 2004...
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...trade-off between profitability and the conservation of biodiversity; the effort by farmers to increase crop yield usually diminishing biodiversity. Consequently, producers may not wish to tolerate agricultural plant diversity and remove trees and brush to increase profit margins. Such increases in profitability often occur in both agricultural monocultures and in mixed systems of land use. Monoculture is the practice of cultivating large tracts of land with trees or other plants of the same species. While it is an efficient and profitable theory from a commercial perspective, from the ecological point of view it is disastrous. The basis of all ecosystem diversity and monoculture practice is merely violating this principle. If there is less plant diversity there will also a decrease in animal diversity. On rubber plantations in Cuba and Indonesia, the number of rubber trees per unit area increased rubber production. Simultaneously, there was a corresponding decrease in the amount of other species of trees. In extreme cases, it can be very frequent when establishing monoculture crops or tree species with large economic importance. Another example could be in class, you acquire a beneficial amount of knowledge when you go to class, but if you didn’t go to class you could still gain benefits. So, if you come to...
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...and Southeast Asia to recognize the similarities and differences in the region. It offers an extensive view of the Southeast Asian economic miracles in comparative East Asian perspective by comparing and contrasting the Southeast Asian experiences with those of the other high performing East Asian economies, as the World Bank (1993) chose to describe them. The following discussion will focus on the development experiences of Southeast Asia that have been considered high-growth economies, as well as East Asia countries. The Southeast Asia economies have been rather successful in applying public policies to realize their chosen developmental objectives, from the viewpoint of better advancing the course of human development, will be identified. II. East and Southeast Asia (ESA) economies • Human Development (HD): As well as being substantially different in the starting level of human development achieved, and although all have made substantial progress over the two decades, these economies show marked differences in the pace of this progress. Being already high-achieving, Japan recorded a modest rate growth of 0.26%, Singapore 0.61% and South Korea 0.92%. This pattern appears to exactly mirror the pattern of difference in their initial. Improvements in other less developed ESA economies are mixed. While China was behind Indonesia and the Philippines in 1990, it overtook them in 2007. Vietnam was behind China at the starting year, while its rate of growth is actually...
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...Global Marketing 7e Warren J Keegan & Mark C Green Chapter 02 The Global Economic Environment Presentation adapted by Alfred Lowey-Ball For (International) Marketing management course Fall semester 2014 UBI-BA2 Brussels Chapter 02 Outline (The Global Economic Environment) 2-0 2-1 2-2 2-3 2-4 2-5 2-6 Introduction The world economy—an overview Economic Growth stars Classification of countries by income Market opportunities in DCs World population trends Dealing with currency risks 2 2-0 Introduction • The level of economic development in the target country is a major determinant of global market potential and opportunities • Globalization and forms of freemarket capitalism prevail almost everywhere today • Since the 2008 financial crisis, however, much uncertainty has crept in. 2-3 2-1 The World Economy—An Overview • The world economy has changed profoundly since WWII: in the western world, trade boomed and GDP rose constantly at a 2-3% rate… • Globalization (economic integration) was estimated to be 10%; today it is 50% (by some measures) and still rising • Global companies have arisen to respond to global market demands and opportunities, global competitors have displaced local ones 2-4 Growth of world GDP Figure 1.1 Growth of Real World GDP, 1975–2005 500 – 450 – 400 – 350 – Volume 300 – 250 – World GDP ~$70 Trillion today World population 7,1 Billion 200 – 150 – 100 – 1975 1980 1985 1990 1995 World GDP 2000 2005 ...
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...PEST AND DISEASES OF PLANTATION CROPS PLP 5003 TITLE: SUSTAINABLE DEVELOPMENT OF OIL PALM AS THE MAJOR PLANTATION CROP IN MALAYSIA GROUP 7: MOHD HARLIZAN BIN MOHAMAD DARUS GS32853 ADIBAH NOOR BINTI KHAIRUDDIN GS36223 SHAHFAHZIELAH BINTI SHAMRAN GS36066 SITI NOR ANIZAM BINTI ZAMRI GS38320 1.0 INTRODUCTION The oil palm, Elaeis guineensis was brought over to the Bogor Botanic Garden in the Island of Jawa, Indonesia from West Africa in 1848 (Polunin, 2004). It has been planted in almost 43 countries in tropical regions of Southeast Asia, Africa and South America. It was planted in Malaysia in 1896 much later after Indonesia (Yacob, 2005). Now, this crop has become major plantation crop in Malaysia contribute to palm oil industry. Palm oil industry is one of the most traded agriculture commodities in the world. In Malaysia, this industry has been an important agriculture in the economy for the past three decades. Malaysia is one of the major producer of palm oil in the world which contribute17.6 million tonnes respectively in 2009. Recently, concern over the environment impact people around the world keeps on talking about global warming, greenhouses effect, deforestation and other environment impact caused by human activities or improper development. Government and private sectors are being urged to commence all agriculture activities include oil palm within the concept of sustainable development. Therefore, sustainability becomes the main word uses...
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...four types of economic systems. Give an example of a country that illustrates each type of system. Market capitalism is an economic system in which the price and productions of goods and services are determined by their availability and consumer demand rather than by government or state regulation. An example of market capitalism would be the United States’ mixed market economy from which goods are produced, bought, and sold with prices and production being determined by consumer demand with limited interference from government regulation. Centrally planned socialism differs from market capitalism in that the government or state determines what goods and services will be produced and consumers demand is not a significant focus. China would be an example of a country that uses this type of economic system, the states decide which goods consumers’ need and that is what is produced. Centrally planned capitalism is similar to centrally planned socialism in that the government or state determines what goods are to be produced, but allows private companies to produce them. Sweden is an example of centrally planned capitalism due to two-thirds of businesses being owned by the government, the remaining companies produce what is perceived to be needed. Market socialism differs from the other economic systems in that it is complete and self-regulating; production is communally owned and operated with profits being divided among workers. Vietnam used this system for a brief...
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...Economics Development Final Assignment Endemic Corruption Cases in Indonesia’s Economics Development [pic] International Undergraduate Program Poppy Puspita Rini 1006718624 Statement of Authorship I certify that the attached material is my original work. I declare that no other person’s work has been used without due acknowledgement. Except where I have clearly stated that I have used some of material elsewhere, it has not been presented by me, for examination in any other course or unit at this or any other institution. I understand that the work submitted may be reproduced and/or communicated by the University or third party authorized by the University for the purpose of detecting plagiarism. Name : Poppy Puspita Rini Student Register Number : 1006718624 Depok, June 11 2013 Poppy Puspita Rini Introduction Corruption in Indonesia is widespread and costly. Recently, corruption cases become a major on-going economics development sector issue. Indonesia’s Corruption Eradication Commission (Indonesian: Komisi Pemberantasan Korupsi) (abbreviated KPK) shows there has been a sharp increase in all enforcement activity, relating to the sector. Political organizations in economic sector continue to face significant corruption risks. How far the current corruption and bribery case in Indonesia’s economic development...
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...passed based on the evidence substantiated throughout the entire essay. The assertion that “while promoters of globalization proclaim that this model is the tide that will lift all boats, while citizens movements find that it is instead lifting only yachts” means that globalization is viewed, conceived and interpreted differently by the rich and the poor countries are very sceptical. Globalization is not different from other theories of development such as modernization and microeconomic structural adjustment adjustments (Jauch, 1996). Globalization benefits the rich nations while developing nations are further pushed to the margin. Wallerstein (2000) argues that globalization creates a global capital system where the core countries exploit the periphery countries. The open market system or trade liberalization has...
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...Well in East Java, Indonesia May 29, 2006 By: Yulini Arediningsih Abstract This paper overview the occurrence of Sidoarjo mud flow, known as Lusi Mud Volcano, the world fastest growing mud volcano, triggered by gas drilling exploration. Since May 29, 2006, Lusi mud volcano in Porong sub-district, East Java, Indonesia has been spurting voluminous hot mud and gas, with uncertain knowledge when it will cease. The progressing eruption has been causing major impact on human life, social, economic and environment in this highly populated region. Breached regulations including Indonesian regulations, constitutions, and APPEGGA rules of conduct are outlined. There are five critical concerns related to ethical and professional conduct arising from the occurrence of Lusi mud volcano. The concerns include negligence to best practise procedures, particularly drilling in high pressure zone; conflict of interest between public, government and private sector; violence to human right, public safety; and crisis management related to mitigating the impacts on environment, social, economic especially in compensation process to the victims. 1. Introduction Sidoarjo/Lapindo Mud flow, is geologically identified as a mud volcano (Sawolo, et al 2009). It is generally known as Lusi, a short name of Lumpur Sidoarjo. Lumpur means mud in Indonesian language. Lusi mud volcano is located in Porong sub district, Sidoarjo Regency, East Java Province, Indonesia. It is located about...
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...free-market economy, people own their own businesses and property and must buy services for private use, such as healthcare Socialism (Norway)-- Socialist governments own many of the larger industries and provide education, health and welfare services while allowing citizens some economic choices Communism (Cuba)-- In a communist country, the government owns all businesses and farms and provides its people's healthcare, education and welfare. Politics - how is the government run? Dictatorship (Iraq)-- Rule by a single leader who has not been elected and may use force to keep control. In a military dictatorship, the army is in control. Usually, there is little or no attention to public opinion or individual rights. Totalitarian (China)-- Rule by a single political party. People are forced to do what the government tells them and may also be prevented from leaving the country. Theocracy (Iran)-- A form of government where the rulers claim to be ruling on behalf of a set of religious ideas, or as direct agents of a deity. Monarchy (Jordan)-- A monarchy has a king or queen, who sometimes has absolute power. Power is passed along through the family Parliamentary (Israel)-- A parliamentary system is led by representatives of the people. Each is chosen as a member of a political party and remains in power as long as his/her party does Republic (USA)-- A republic is led by representatives of the voters. Each is individually chosen for a set period of time. Anarchy(Afghanistan...
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