People should be free to pursue economic and political endeavors without constraint, simular to capitalism and connected to free-market society
individualism
Views the needs or goals of society as a whole as more important that individual desires, Plato believed individual rights should be sacrificed and property should be commonly owned, has no rigid form as societal goals differ greatly among cultures
collectivism
Society in which there is government ownership of institutions but profit is not the ultimate goal, has been practiced in China, North Korea, Cuba
socialism
Believed that governments should own businesses because in a capitalistic society only a few would benefit
Marx
Government is controlled by citizens either directly or through elections, cannot exist without at least a two-party system
democracy
Only one representative party, which exhibits control over every facet of political and human life, power maintained by suppression of opposition
totalitarianism
Making trade liberalization a top priority, supporting a more open and democratic society, shifting toward greater tolerance of individual freedoms, seeking to unleash more dynamic market economy
political environment in China
Laws and government based on Islamic principles, Arab countries operate business similar to the West, worldwide fallout from war on terrorism has make business environment risky and potentially dangerous
political environment in the middle east
Derived from interpretation of the Qur’an and teachings of Prophet Muhammad, found in most Islamic countries in the Middle East and Central Asia
Islamic Law
Originates from Marxist socialist system, continues to influence regulations in former and current communist countries, forces MNCs to shy away from countries that follow this law
Socialist law
Derives from English law, foundation of legal system in US, Canada, England, Australia, New Zealand
Common law
Derived from Roman law, found in non-Islamic and nonsocialist countries, France, Latin America, Louisiana
Civil or code law
Sources are laws of individual countries, treaties, and conventions, and contains unwritten understandings that arise from repeated interactions among nations
inteational law
Holds that governments have the right to rule themselves as they see fit
principle of sovereignty
every country has jurisdiction over its citizens no matter where they are located
nationality principle
every nation has the right of jurisdiction within its legal territory
territoriality principle
every country has jurisdiction over the behavior that adversely affects its national security
protective principle
mutual respect for laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens, part of international custom and tradition and not part of international law
doctrine of comity
all acts of other governments are considered to be valid by US courts
act of state doctrine
Makes it illegal to influence foreign officials through personal payment or political contributions
foreign corrupt practices act
one of the biggest problems facing MNCs
restrictive foreign bureaucracies
creation of agricultural or medical products through industrial use and manipulation of living organisms
biotechnology
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