Ma. Rowella C.
Velasco
K W
What do I KNOW?
Every country has differences in
political, economic, and legal systems
and managers should be sensitive to
the differences. These differences
have major implications for the
practice of international business.
They have an impact on the benefits,
costs, and associated with doing
business in different countries. The
way in which operations in different
countries should be managed and the
strategy international firms should
pursue in different countries.
What do I WANT to know?
• What are the national
differences in Political
Economy?
• What are the difference
between collectivism?
• How intellectual property be
protected?
• What are the implications for
management practice of
national difference in political
economy?
H L
HOW will I learn?
• Browse to the internet and
study some related topics
about national differences
• Read book and understand
the chapter
• Look for other references for
me to understand more the
topic.
What I have LEARNED?
• I have learned that Political
systems is the system of the
government in a nation.
Economic System has three
types which are market
economy, command
economy, mixed economy. In
market economy, the
productive activities are
privately owned. In command
ecnonomy, government has
the control in pricing system
and in mixed economy, it is
the combination of the other
economic systems it can be
used by social democrats.
Legal system involves the
rules and regulation
implemented by the State. It
consists of common law, civil
and theocratic law.
• Collectivism stresses the
collective goals over
individual goals and the
needs of the society as a
whole is more important than
individual freedom while
individualism have their
freedom in economic and
political pursuits and its
interest should take
precedence over the interest
of the state.
Ma. Rowella C. Velasco

• Intellectual property rights

are established through
patents, copyrights and
trademarks. Patent is the
exclusive right for
manufactured goods and
inventions. Copyrights are
exclusive rights of authors,
composer and publishers.
Trademarks are design and
names by manufacturer
designated in their products.
• Implications of doing
business in a country tend to
be greater in countries that
are politically unstable, are
subject to economic
mismanagement, and lack a
legal system to provide
adequate safeguards in the
case of contract or property
rights violations.