Differences in political and legal systems present both opportunities and risks for international companies. What are the implications for doing business in democracies and totalitarian nations? Which type is best for international business?
Democracies seem more flexible and open to change than totalitarian systems. There are a lot of rules and laws to navigate, but for the democracy, there is supposed to be more tranparency. The democracy is usually more capitalistic in nature and more expansion oriented for their businesses. Laws adn rules are written to advance the movement of the people of the state, and only when necessary, are barriers put in place to limit risk to both companies and the government. There are more individuals with the ability to shift power and make power available to those in the international business markets. Because democracies tend to not go to war with each other, there is the perception of stability which is ...
This solution discusses democracies and totalitarian businesses with respect to global commerce.