Topic 2 National Differences in Political Economy

Political economy consist of

• political system

• economic system

• social system

• legal system

Dimensions assessed in political system are

• collectivism

• individualism

• democratic

• totalitarian

Political system refers to:

• the set of structures and processes that guides the allocation of scarce resources and shapes the conduct of business activities in a nation

• the system of government in a nation

• the rule of man

• the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained

Economic system refers to:

• the set of structures and processes that guides the allocation of scarce resources and shapes the conduct of business activities in a nation

• the system of government in a nation

• the rule of man

• the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained

Legal system refers to:

• the set of structures and processes that guides the allocation of scarce resources and shapes the conduct of business activities in a nation

• the system of government in a nation

• the rule of man

• the rules that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained

Collectivism emphasize

• individual goals

• collective goals

• individual freedom

• private ownership

Individualism emphasize

• individual goals

• collective goals

• individual freedom

• private ownership

Example of country (s) that practice collectivism:

• China

• India

• USA

• Japan

Example of country (s) that practice individualism:

• China

• India

• USA

• Japan

A person has serious stomach problem. He is searching for a doctor. He will consult an expert doctor and will get treated by him.

This is a situation of

• individualism

• collectivism