10 marks

1. The globalization debate

2. Features of Business policy
3. Doing business and totalitarianism
4. Doing business and democracy
5. Government role and market economy

10 မမမမမမမ မမမမမမမမမမ (5) မမမမ

The Globalization Debate
 Pro
 Lower prices for goods and services
 Economic growth
 Increase in consumer income
 Creates jobs (for many)
 Countries specialize in production of goods and services that are produced most efficiently
 Con
 Destroys manufacturing jobs in wealthy nations
 Wage rates of unskilled in advanced countries decline
 Outsourcing
 Companies move to countries with fewer labor and environment regulations
 Loss of sovereignty
 Homogenized cultures

Features of Business Policy

* Specific – Policy should be specific/ definite. If it is uncertain, then the implementation will become
difficult.
* Clear – Policy must be unambiguous. It should avoid use of jargons and connotations. There should be
no misunderstandings in following the policy.
* Reliable/Uniform – Policy must be uniform enough so that it can be efficiently followed by the
subordinates.
* Appropriate – Policy should be appropriate to the present organizational goal.
* Simple – A policy should be simple and easily understood by all in the organization.
* Inclusive/ Comprehensive – In order to have a wide scope, a policy must be comprehensive.
* Flexible – Policy should be flexible in operation/ application. This does not imply that a policy should be
altered always, but it should be wide in scope so as to ensure that the managers use them in
repetitive/ routine scenarios.
* Stable – Policy should be stable else, it will lead to indecisiveness and uncertainty in minds of those
who look into it for guidance.

Doing business and totalitarianism

Leaders govern without people’s support
Government controls much of people’s lives
Leaders do not tolerate opposing viewpoints
Imposed authority>>>>>>>Lack of constitutional guarantees>>>>>>>Restricted participation
Forms of Totalitarianism
 Theocratic totalitarianism (totalitarian religious leadership)
 Secular totalitarianism (military and bureaucratic leadership)
 Communist totalitarianism
 Tribal totalitarianism
 Right-wing totalitarianism

Doing business and democracy

Government leaders are elected by the wide participation of the people or their representatives
 Freedom of expression
 Periodic elections
 Full civil and property rights
 Minority rights
 Nonpolitical bureaucracies

Government role and market economy

Government’s Role in a Market Economy
 Enforce antitrust laws
 Preserve property rights
 Provide fiscal and monetary stability
 Preserve political stability
Market economy
Private parties (individuals or businesses) own most land, factories, and other economic resources.
Supply; Quantity producers will provide at a specific selling price.
Demand; Quantity buyers will purchase at a specific selling price.