BUS 5010: Culture in a Global Business Environment

Module 2 Worksheet: National Differences Analysis

National Differences Analysis

Directions: Different countries use different economic philosophies and models based on many different variables. Complete this
worksheet using the directions within to guide you.

Submit your completed worksheet in the “Assignment and Grades” tab in your course menu. When you have submitted this
assignment for grading, please return to your module for a wrap-up.

Open Mixed Command

Economic System Economic System Economic System

What are the positive
characteristics of each
economic system?
1. Consumers pay the
highest price they want
to, and businesses only
produce profitable
goods and services.
There is a lot of
incentive for
entrepreneurship.
2. This competition for
resources leads to the
most efficient use of
the factors of
production since
businesses are very
competitive.
3. Businesses invest
heavily in research and
development. There is
an incentive for
constant innovation as
companies compete to
1. There is less 1. If executed correctly,
government the government can
intervention than a produce lots of jobs on
command economy.
a massive scale
This results in private
businesses that can
run more efficiently 2. The government can
and cut costs down focus on the good of
than a government the society rather than
entity might. the individual
2. The government can
intervene to
3.
correct market failures.
For example, most
governments will come 4.
in and break up large
companies if they 5.
abuse monopoly
power. Another
example could be the
taxation of harmful

. 3. Governments can
What are the negative
characteristics of each
economic system?
BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
provide better products products like cigarettes
for consumers. to reduce a negative
4. externality of
consumption.
create safety net
programs like
healthcare or social
security.
4. In a mixed economy,
governments can use
taxation policies
to redistribute
income and reduce
inequality.
5.
1. Due to the fiercely 1. There are criticisms 1. It is hard for central
competitive nature of a from both sides planners to provide for
free market, businesses arguing that everyone’s needs. This
will not care for the sometimes there is too challenge forces the
disadvantaged like the much government government to ration
elderly or disabled. This intervention, and because it cannot
lack of focus on societal sometimes there isn’t calculate demand
benefit leads to higher enough. since it sets prices.
income inequality. 2. A common problem is 2. There is a lack of
2. Since the market is that the state run innovation since there
driven solely by self- industries are is no need to take any
interest, economic often subsidized by the risk.
needs have a priority government and run
over social and human into large debts 3. Workers are also
needs like providing because they are forced to pursue jobs
healthcare for the poor. uncompetitive. the government deems
Consumers can also be 3.
 BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis
exploited by fit.
monopolies. 2. 4.
3.
3. 4.
2.
4.
3. 5.
5.
4.

5.

List one country as an Name of Country: Name of Country: Name of Country:

example of each economic
system.

What are the political aspects 1. 1. 1.

to consider before doing
business with each of the 2. 2. 2.
three countries you identified?
3. 3. 3.

What are the legal aspects to 1. 1. 1.

consider before doing
business with each of the 2. 2. 2.
three countries you identified?
3. 3. 3.

What are the economic 1. 1. 1.

aspects to consider before
 BUS 5010: Culture in a Global Business Environment
Module 2 Worksheet: National Differences Analysis

doing business with each of 2. 2. 2.

the three countries you
identified? 3. 3. 3.

What are the cultural aspects 1. 1. 1.

to consider before doing
business with each of the 2. 2. 2.
three countries you identified?
3. 3. 3.

Write a 250-500 word

response in which you Your Chosen Country: _________________
address the following prompt:
Provide your 250-500 word explanation for why you would want to do business in this country.
Which of the three countries
would you most want to do
business with? Why?