ALFONSO JOEL V.

GONZALES SEPTEMBER 11, 2021

MBA-I

National Differences in Political Economy Essay

Question

What does political economy tell us about economic development- and vice versa?

Political considerations, which are government-enforced laws and administrative norms, can influence
economic development, which is the process of raising living standards by moving away from traditional
farming cultures and toward industrialized societies. Economic development is influenced by political
issues, which either promote or obstruct the development process.

People in a democratic country, for example, can get modest business loans and establish their own
firm. Depending on the task they are doing, the company can grow enormously. However, in a
communist country, there are tight restrictions in place, such as paying all employees equally, which can
have an impact on how firms run and limit economic development.

Summary

International business operations and activities are faced with various difficulties due to political,
cultural, and legal differentials amid different countries.

Due to political, social, and legitimate contrasts over nations, worldwide company operations and
exercises stand up to a assortment of challenges. Distinctive nations progress their economies at diverse
speeds, coming about in shifting levels of financial development and advancement. The political and
legitimate frameworks of a nation decide how effective and solid its economy is.

As a result, the government and its many agencies play a crucial role in determining company stability
and performance. Individualized systems provide a greater emphasis on personal goals, whereas
collective systems place a greater emphasis on communal goals. In order to build an active market,
socialism strives to persuade businesspeople to strengthen democratic rights.

Due to a lack of accountability, government-owned enterprises perform poorly (Hill, 2011). As a result,
the individualized economy's promoted freedom of entrepreneurship and decision-making is critical to
valuable economic success. Citizens, either directly or through election seats, oversee a democratic
political attitude. As a result, political systems make decisions that reflect the people's will.

A single party or individual makes decisions, exerts ultimate authority, and controls all functions in a
totalitarian political system. Citizens are not represented in this case, and as a result, situations of rights
violations and irregular policies are common. The goal of a perfect market economy is to provide high-
quality services to everyone.

In this manner, request beside supply strengths decides financial status. Be that as it may, monopolistic
markets take advantage of few providers in connection to shoppers, and misuse shoppers by charging
higher costs than would be at harmony (Slope, 2011). In a political framework, legitimate framework is
vital in arrange to set rules and laws to be taken after by each individual.
ALFONSO JOEL V. GONZALES SEPTEMBER 11, 2021
MBA-I

What I learned

The legal system guides business relations by applying the law of contract that ensures that parties
fulfill their pledges. Therefore, governments are expected to involve itself in businesses by formulating
policies and laws that effectuate the aspect of advanced economic activities and relations.

The part of the political framework incorporates guaranteeing that person property rights are defended.
This anticipates robbery and abuse and consequently ensures most extreme utilization for individual and
national advantage. Be that as it may, this perspective is distinctive in different countries due to
arrangement differential and the level of compliance with the law. Debasement jeopardizes financial
exercises and hence prevents development and improvement in nations exceedingly affected.

Hence, battling debasement is basic in guaranteeing important and effective national development and
universal business’ competitive base. Mental rights incorporate licenses, trademarks, and copyrights
that ensure an individual’s work such as music, equations, and other advancements. The government
ought to actualize arrangements pointed at most extreme assurance of individual thoughts in arrange to
ensure universal competition.

Financial improvement is influenced by political, legitimate, as well as financial frameworks. Diverse

nations perform at changing financial levels when net national pay is measured comparative to each
other. Subsequently, a country’s level of financial improvement is influenced by political and lawful
choices. Financial development and improvement are persuaded by advancements and entrepreneurial
activities that advance exchange. In this manner, valuable approaches and financial situations ensure
victory in neighborhood and universal businesses.

In any case, this is often not continuously the case as national legitimate frameworks contrast in their
functioning and convenience. In expansion, instruction framework is additionally critical to economic
development (Slope, 2011). The level of venture in instruction changes totally different nations and
hence a nation that values instruction has higher growth rates. To move forward the world economy,
worldwide cash showcase must be stabilized through steady legislative issues at the side guaranteeing a
free stream of the components of generation.

Reference:

https://ivypanda.com/essays/national-differences-in-political-economy/