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International Politics

International Politics. Delivered in: Islamia University of Bahawalpur Presented By: Tasawar Javed. What is it?. Introduction: Political system There are various political system to be discussed later in this lecture.

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International Politics

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  1. International Politics Delivered in: Islamia University of Bahawalpur Presented By: TasawarJaved

  2. What is it? • Introduction: • Political system • There are various political system to be discussed later in this lecture. • Political system is the way the country runs under certain people and important responsibilities.

  3. Is it changing? • There is no doubt that international politics is changing rapidly specially after 911. • Once there was a time when Russian Federation was super power and investment trend was different as it is today. • Once Iraq was a charming country to travel and for investment but after attack on Iraq situation is completely changed. • Eastern European countries are free from communism and now they are enjoying democracy. • China is still communist but nation is not tightly managed by Beijing.

  4. Is it good? • Political changes are taking place almost every where • Its creating new opportunities for MNEs • Particularly; to movement towards market-driven economies for countries that were controlled by the USSR has affected international business. • Years ago it was controlled by communist ideology now it is replaced by free market system

  5. Political ideologies & economies • Democracy • In which the people either directly or through their elected officials, decide what is to be done • Totalitarianism • One individual or party maintains complete control and either refuses to recognize other parties • Communism • The government owns all property and makes all decisions regarding production and distribution of goods and services • Theocratic totalitarianism • A religious group exercises total power and represses or prosecutes non-orthodox factions • Secular totalitarianism • Military controls everything and makes decisions which it deems to be in the best interest of the country

  6. Political ideologies & economies • Market-driven Economy • In which products and services are allocated on the basis of consumer demand such as if public is looking for some thing this will provide particular product; and if public refuses to buy this then it will be ceased. EU and US economies are market driven. • Characterized by private ownerships. Most of the production is in the hand of private sector • Centrally determined Economy • In which goods and services are allocated based on plan formulated by a committee that decided what is to be offered. China and Cuba are examples • Characterized by public ownership. Most of the production and control is in the hand of government. • Mixed Economic System • Most of the nations have mixed economic system. Characterized by market driven and plan based committee. Such as GB, Sweden, Germany

  7. Government Control of Assets • Privatization • Nationalization • Privatization takes two forms • Divestiture • Contract management

  8. Economic Integration • Establishment of trans-national rules and regulations that enhance economic trade & cooperation among countries. • 2 ways in this phenomenon • Few countries exports every thing and free trade as well • Few countries self-sufficient and didn’t trade with anyone

  9. Levels of Economic Integration • Free Trade Area (US, Canada) • Customs Union (none) • Common market (EU) • Economic Union (EU) • Political Union (EU is near to this soon)

  10. Ethics, Environment, MNEs, Civil Society • Ethics: • Are not rules but expected to be carried out by companies in terms of their operation. Employees, production, society benefits etc • Environment should be kept clean by the MNEs • Civil society is a group of individuals, organizations & institutions that act outside the government and the market to advance a diverse set of interests

  11. SA & Acquisitions • Most common way of benefiting from EI are • Strategic Alliance • Joint Venture • Acquisitions These techniques are popular in all over the world • Mittal & Arcelor • RBS & MCB • PSO & Tuk Shop • Diamler-chrysler

  12. Localization of Business Operations • Localization of Products • Localization of Profits • Localization of productions • Localization of Managements

  13. Thank You!!! • Q&A

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