C2- National Differences In Political Economy

Question 1

What is political system

Answer 1

The system of gov in a nation

Question 2

Political Systems key notes

Answer 2

1. Collectivism and Individualism
   a. collectivism- socialism (splits into communist and social democrats)
   b. Individualism- believe everyone has their own private space, freedom
   .
2. Democracy and Totalitarianism
   .
3. Pseudo-Democracies

Question 3

POLITICAL SYSTEMS (Collectivism & Individualism)

1. What is collectivism?
2. Who introduced this system?

Answer 3

1. A system that stresses the importance of collective goals over individual goals
   -the needs of society are more important than individual freedom
2. Greek philosopher Plato

Question 4

POLITICAL SYSTEMS (Collectivism)

What is Socialism and who introduced it?

Answer 4

A political and economic system in which property and production controlled by the government.

Karl Marx introduces this system and modern socialists rooting on him

Countries that use socialism: US, China, Singapore

Additional info: In a socialist system, all decisions regarding production, distribution, and pricing are made by the government. Citizens in socialist societies depend on the government for everything, including food, housing, education, and healthcare.

Question 5

POLITICAL SYSTEMS (Collectivism)

Socialism splits into two types. What is it?

Answer 5

Socialism splits into:
1. Communists- socialism can be achieved by revolution and totalitarian dictatorship (pemerintah berkuasa mutlak)
.
2. Social democrats- work to achieve same goals by democratic (kita susah senang bersama)

But many state-owned enterprises failed, so they implemented privatization programs

Question 6

POLITICAL SYSTEMS (Collectivism & Individualism)

What is individualism?
Who introduced it?

Answer 6

Individuals should have freedom over their eco and political pursuits.

Introduced by Aristotle- he argued individual diversity and private ownership are desirable

keyword:freedom

Question 7

POLITICAL SYSTEMS (Individualism)

What individualism stresses to (focus to)?

Answer 7

Individualism stresses to:
1. Individual freedom and self-expression
2. democratic systems and free market (everything was set by price and demand)
3. Let people pursue their own interest (wanna become doctor, engineer, etc that bring good to society)

Question 8

POLITICAL SYSTEMS (Democracy & Totalitarianism)

What is democracy?

Answer 8

A political system which gov by people, through elected representative

-representative democracy: elected representatives vote on behalf of constituents

keyword:election

Question 9

POLITICAL SYSTEMS (Democracy & Totalitarianism)

What is Totalitarianism?

Answer 9

A system in which the gov exercises absolute control over the lives of its citizen through coercion and repression.

1. Oppose political parties are prohibited.
2. Doesn’t permit individual freedom.

keyword: gov control

Question 10

POLITICAL SYSTEMS (Democracy & Totalitarianism)

Characteristics of Totalitarianism?

Answer 10

In most totalitarian regimes:
1. Widespread of political repression (oppressive restriction)
2. No free and fair election
3. Media is censored
4. basic civil liberties (freedom) denied
5. Challenge the regime are prohibited

Question 11

POLITICAL SYSTEMS (Democracy & Totalitarianism)

Major forms (types) of Totalitarianism?

Answer 11

1. Communist totalitarianism:
   -support achieve the socialism through totalitarian dictatorship (north korea)
2. Theocratic totalitarianism: based on agama
   -political power monopolized party, group or individual that governs according to religious principle (ketua agama- saudi, kuwait)
3. Tribal totalitarianism: based on puak
   -political party of particular tribe monopoly the power (macam black panther)
4. Right Wing totalitarianism: dapat sikit freedom
   -individual economic freedom is allowed but individual political freedom is restricted (as long as tak melawan gov)

Question 12

POLITICAL SYSTEMS

Pseudo-Democracies

Answer 12

-A government that holds elections but restricts civil liberties

-describes a political system that calls itself democratic but offers no real choice for the citizens.

Question 13

ECONOMIC SYSTEMS KEYNOTE

Answer 13

Market eco- ingat supply and demand
Command eco- ingat gov decide everything
Mixed eco- both market and command

Question 14

ECONOMIC SYSTEMS

What are 3 types of economic systems?

Answer 14

1. Market Economy
2. Command Economy
3. Mixed Economy

Question 15

ECONOMIC SYSTEMS

What is market economy?

Answer 15

The products (goods & services) and the product’s quality that country produced are determined by supply and demand

-supply not restricted by monopolies
-gov will encourage free and fair competition between private producers
-market determined by supply and demand
-extremely freedom from government

Question 16

ECONOMIC SYSTEMS

What is command economy?

Answer 16

The products, the quality of products the country produces, the price they sold are ALL planned by gov

-all state-owned businesses got little incentive to control costs and efficiency
-little incentive to serve consumers’ needs due to no private ownership

-North Korea as a centralized, tightly controlled dictatorial command economy

Question 17

ECONOMIC SYSTEMS

What is mixed economy?

Answer 17

The combination of elements from market and command economy

-gov control half but depends on market
-gov take over yang penting untuk eco negara je
-no of mixed economies today is falling

Question 18

LEGAL SYSTEMS KEYNOTE

Answer 18

Legal system:
-Contract Law (common, civil, theocratic)
-Property right and Corruption (property right, private action, public action)

Question 19

LEGAL SYSTEMS

Answer 19

A process for interpreting and enforcing the law

Question 20

LEGAL SYSTEMS (Contract Law)

What are 3 types of Contract Law?

Answer 20

1. Common Law
2. Civil Law
3. Theocratic Law

Question 21

LEGAL SYSTEMS (Contract Law)

what’s the differences between these 3 types of law?

Answer 21

1. Common Law: based on tradition, precedents, custom
   -US
   -eg: kes kakak terbunuh adik tu termasuk bawah common law sebab court kena check dia termasuk dalam seksyen mana sama ada terbunuh atau membunuh dgn niat etc
2. Civil Law: based on detailed set of laws organized into codes
   -Japan, France, and other 80+ countries
   -eg: drive car more than 100km/j kena saman
3. Theocratic Law: based on religious teachings
   -Islamic law are widely practiced

Question 22

LEGAL SYSTEMS (Property Rights and Corruption)

Name the 3 types.

Answer 22

1. Property rights
2. Private action
3. Public action

Question 23

LEGAL SYSTEMS (Property Rights and Corruption)

What is property right?

Answer 23

Legal ownership of resources and how they can be used.
-whether tangible or intangible

Question 24

LEGAL SYSTEMS (Property Rights and Corruption)

What is private action?

Answer 24

Private action refers to theft, piracy, blackmail, and the like by individuals/groups

-action that not in gov authority

Question 25

LEGAL SYSTEMS (Property Rights and Corruption) what is public action?

Answer 25

Public officials extort (ambil secara paksa) income/resources from property holders -excessive taxation -require expensive licenses/permits from the property holder -take the assets into state ownership without compensate the owners

Question 26

LEGAL SYSTEMS (Property Rights and Corruption) What happen if a country has high level of corruption?

Answer 26

1. FDI falls 2. International trade falls 3. Economic growth falls -Somalia is the most corrupt country, and Denmark is the least corrupt country

Question 27

LEGAL SYSTEMS Foreign Corrupt Practices Act

Answer 27

This act limits corruption in US: 1. illegal to bribe foreign gov to obtain/maintain business 2. public traded companies must keep detailed records 3. Expediting payment to secure performance of routine gov actions are permitted (ni bukan bribe, ni cuma nak percepatkan process)

Question 28

LEGAL SYSTEMS (The Protection of Intellectual Property) What is intellectual property?

Answer 28

Property that is the product of intellectual activity a) protection of IP differs by each countries. b) 185 nations are members of World Intellectual Property Organization. c) 170+ countries signed agreement of Paris Convention for the Protection of Industrial Property to protect intellectual property rights.

Question 29

LEGAL SYSTEMS (The Protection of Intellectual Property) There are three types of IP. Name it.

Answer 29

1. Patents 2. Copyrights 3. Trademarks

Question 30

LEGAL SYSTEMS (The Protection of Intellectual Property) What is patent?

Answer 30

A patent is an exclusive right granted for the use, manufacture, or sale of invention to inventor -produk baru kita tu kita patentkan

Question 31

LEGAL SYSTEMS (The Protection of Intellectual Property) What is copyrights?

Answer 31

exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and dispose of their work -protect original works of authorship as soon as an author fixes the work in a tangible form of expression.

Question 32

LEGAL SYSTEMS (The Protection of Intellectual Property) What is trademarks?

Answer 32

Name and design of a product that shows it was made by a particular company, legally differentiates it from all other products of its kind. -A trademark exclusively identifies a product as belonging to a specific company and recognizes the company's ownership of the brand.

Question 33

LEGAL SYSTEMS (The Protection of Intellectual Property) Response to violations of intellectual property

Answer 33

1. Lobbying gov for better laws and enforcement -TRIPS require WTO members to enforce patents lasts at least 20years and copyright at least 50years 2. Filing lawsuits 3. Avoid countries with poor IP laws

Question 34

LEGAL SYSTEMS (Product Safety and Liability) What is product safety laws?

Answer 34

Product safety sets certain safety standard to which a product must adhere - macam SIRIM,KKM

Question 35

LEGAL SYSTEMS (Product Safety and Liability) What is product liability?

Answer 35

Holding a firm and its officers resposible when a product causes injury, death, damage

Question 36

Implications for management practice of national differences in political economy

Answer 36

1. The political, economical, legal systems raise important ethical issues 2. Influence attractiveness of country as a market and investment site 3. Attractive place to do business: - democratic country with market based eco - protection of property rights -low corruption