International Environment of business

GDP growht per capita 

1. Market econmies (everything privately owned)

2. Command economies(all  businesses state owned)

3. Mixed economies (certain sectors government owned)

4. State capitalism (Government has widespread influence on economie, corporatized government agencies)

1. Advanced economies 

2. Developing economies (divided into emerging markets and frontier markets)

3. least developed economies 

Balance of payments: Current account and financial account

Current account:Net exports

Financial account: NCO (net capital flow)

A system in which private capitalism is modified by a varying degree of government ownership and control, in which governments (whether democratic or autocratic) exercise a widespread influence on the economy through either direct ownerhip or various subsidies, where the state provides means of production, such as capital and land to private entrepreneurs, that has powerful corporatized government agencies (agencies organized along corporate and business management practices), most important state capitalism states are china, russia and various arab countries

-poor countries have a shortfall of high productivity level human skills often needed in services

-manufactures are much more freely traded in the world than services 

-global market in manufactures is also the natural conduit for a quick technological learning process

1. export strategy (take poverty as strength)

2.shift to heavy industry (invest money from step 1 to buy equipment)

3&4. investment in high value added capital and technology intesnive industries( steel, automobiles electronics etc. 

5.-7. investment in hi8gher value-added capital and technology intensive industries (electronics, precision machinery, bioengineering, it)

korean system where businesses are mostly owned and controlled by the same founding family

basic belief: citizens should be involved in the political decisionm making process, most democratic states practice representative democracy, prinicple of political participation, accountability and freedom (democracy relies on well-informed intelligent population --> you need freedom to be informed about politicians abuse of power to make them accountable for their actions

form of government in which one person or one political party exercises sole political, economic and social (often also cultural) control and prohibits opposite parties (monoopolization of power) Forms of authoritarianism: communist, theocratic (iran), tribal, right-wing

form of government that goes beyond the monopolization of power. it attempts to control ALL ASPECTS of social life (monopolization of power + citizens' total submission to the state) examples: nazi-germany, fascist italy, stalinist soviet russia

1. voice and accountability (citizens are able to participate in selecting their government, freedom of expression, freedom of association and free media)

2. political stability and absence of violence

3.government effectiveness (quality of public services and degree of its independence from political pressures)

4. regulatory quality (ability of government to formulate and implement regulations such as contract law, property protection, protection of ownership)

5. rule of law (confidence in the rules of societ in particular the quality of contract enforcement, property rights, police & courts)

6. control of corruption 

the limit in growth accomplished by excellent governance is approximately 10% but terrible governance can ruin a  country almost without limits.

-access to educational infrastructure

-access to health infrastructure

-access to improved sanitation facilities and to fresh water

1. shrinking rich and old

2. grwoing poor and young

3, growing poor and increasingly old

the pyramid describes the population of developing countires where the number of young people is bigger than the number of older people. The pillar describes the population of a developed countries where there are more older people than younger people

Like a balloon. Most people are between 20-50

The majority of the population lives in cities and most of urban growth will happen in the developing world. 

Human development Index, the most widely used measure of comparative status of socio-economic development

1. Health (measured by life expectancy at birth

2. Education (Mean years of schooling and expected years of schooling)

3. standard of living (measurd by GNI per capita at PPP)

good governance, accesible and good infrastructure, dynmanic economy to create opportunities for the people

1. be accountable and freely electable, 2. stable, 3. effective, 4. provide securtiy by implementing the rule of law, 5. promote private sector development by implementing fair and sound regulations 6. not be corrup

1. education

2. health services and sanitation

3. energy, transportation and communication infrastructure so they have market access

4. rule of law, security and protection 

5. job opportunities

inequality, lack of opportunities, government inefficiency and so on can lead to social injustice and lack of opportunities which leads to wasted human potential and increases the discontent and tension among the people. All of this results in less investment from economy, reduction of government capability of governance which leads to government inefficiency and the results is weakening prostpect for overall prosperity and economic growth

1. Public international law, forming a global community of western style nation states

2. International sales law (CISG)

3. WTO, opening global markets

4. International IP protection systems

United Nations Convention of Contracts for the international sale of goods also known as VIenna convention or UN sales convention. 

Its purpose is to remove legal barriers in international trade by providing uniform rules. Its ratified by 87 states

Common law by british colonies and civil law by french, belgia, spanish and portuguese colonies

a fundamental, rapid, lasting change in the social system which produces a new system of law which changes the western legal tradition

secular (speerated from religious principles)

man-made (developed through legislation and court decisions)

Individualistic (focus on individual rights)

Instrumental (meant to serve political and economic interests)

Invasive (state law invading ever more aspects of social life)

everchaning 

expanding (flood of legislation)

Parliamentarism and democracy, human rights, property-mindness, corporations, competition law, labor law and social security law

Property rights, credit interest, stock exchange, corporations, freedom of trade, competition law, labor law and social security law

an uncertain future outcame that can either improve or worsen your position

1. risk (chance)

2. target

3. risk (loss)