These chapters is all about National Environmental Differences.

It shows how culture—learned

norms based on the values, attitudes, and beliefs of a group of people—is an integral part of a nation’s
operating environment. These emphasize national cultures, but also discuss how major cultural
memberships differ among countries, behavioral factors influencing countries’ business practices and
recognize the complexities of cross cultural information differences, especially communications. In
addition to being part of a national culture, people are simultaneously part of other cultures, such as
professional or organizational ones. Further, they may have more than one national culture. There are
national differences in norms that influence people’s workforce preferences, such as whether they
prefer autocratic or consultative working relationships, whether they prefer their activities to follow set
rules, and how much they prefer to compete or cooperate with fellow workers. National differences in
norms determine such behavioural factors as trust, belief in fate, and confidence in planning for
the future. Moreover, it showed that the cultural issues facing international businesses differ from those
facing domestic firms and carries the analysis forward, emphasizing that once a company leaves its
home country it operates in markets with different political and legal systems. Political and legal
systems converge and vary across countries in terms of guiding principles and practical routines. It
describe current trends in political ideologies and their implications to MNe’s choices and discuss the
principles and practices of the legal environment and determining where, when, and how to adjust
business practices without undermining the basis for success is an enduring challenge. Thus, cultural,
political, and legal systems influence a company’s decisions on where, when, and how to do business.
And there are general perspectives and specific tools managers use to analyze economic systems. All
along, it identifies frameworks to integrate otherwise complicated and confusing interpretations.
Managers use several indicators to assess the performance and potential of an economy, including
inflation, unemployment, debt, income distribution, poverty, and the balance of payments. Various
global indices help managers develop a holistic profile of particular markets in terms of
competitiveness, innovation, and the quality of life.