Understanding the balance between China`s governance structure and ideology is key to doing business in this complex country. China is both an emerging market and an emerging superpower. Its leaders see the economy as an instrument for maintaining state power, which in turn is essential for maintaining the stability and long-term growth and viability of the Communist Party. Jason Dean, Andrew Browne and Shai Oster, “China`s `State Capitalism` Sparks Global Backlash,” Wall Street Journal, November 16, 2010, accessed December 22, 2010, online.wsj.com/article/SB10001424052748703514904575602731006315198.html. A prime example of this would be today`s Venezuela. Due to growing anger against the ruling regime, the country is experiencing widespread unrest; The economy has collapsed and previously successful businesses cannot survive under such circumstances. Why should companies care about the different political and legal systems of the world? First, despite the globalization of the economy, companies must comply with the local rules and regulations of the countries in which they operate. In the case study in Chapter 1 “Introduction,” you discovered how U.S. Google had to deal with Chinese government restrictions on free speech to do business in China. China`s various policies and legal policies have led Google to discontinue its mainland Chinese version of its website and direct users in mainland China to a Hong Kong version. In the case of secularism, the principle is that the affairs of this world are more important than ethics and human life. He concludes that secular totalitarianism is based on political concepts, not religious ideas.

The existence of totalitarianism can range from fascism to communism. However, not everything is fatal. Entrepreneurs and businessmen are not completely powerless, especially in modern democracies. Political factors also influence other business-related factors that can have a significant indirect impact on the business. Here are some examples of factors that can be influenced based on strategic considerations: In democracies, businesses understand that most rules survive changes in government. All changes generally reflect a changing economic environment, such as the Great Depression of 2008, not a change in state actors. Because public goods are accessible and benefit everyone, companies often do not produce them because they do not generate profit. Not surprisingly, established democracies, such as those found in the United States, Canada, Western Europe, Japan and Australia, offer a high degree of political stability. Although many countries in Asia and Latin America are also functioning democracies, their level of development affects the stability of their economic and trade policies, which can fluctuate with changes in government.

Chapter 4 “World Economies” provides more information on industrialized, developing and emerging countries. Civil lawA legal system based on a detailed set of laws that form a code and how the law is applied to facts. is based on a detailed set of laws that form a code and focus on how the law is applied to the facts. It is the most widely used legal system in the world. For example, there are big differences between Democratic and Republican politics in the United States. This affects factors such as taxes and public spending, which ultimately affect the economy. Higher levels of government spending often stimulate the economy. The lack of political stability in a country affects business operations. This applies in particular to internationally active companies. The most obvious effects are changes in laws and regulations that affect your business. Taxes, in particular, can have a huge impact on your overhead and profit margins. State-owned enterprises, like their private-sector counterparts, can retain the profits from oil production, providing a significant incentive for governments to retain or regain control of this highly lucrative industry.

It does not matter if the motive is economic (i.e. “Foreign companies and investors are finding that national and local rules and regulations are increasingly designed to favour domestic companies at their expense. Multinationals are now competing as never before with state-owned enterprises armed with significant financial and political support from their governments. Ian Bremmer, “The Long Shadow of the Visible Hand,” Wall Street Journal, May 22, 2010, accessed December 21, 2010, online.wsj.com/article/SB10001424052748704852004575258541875590852.html. In modern society, politics can be defined as all activities and systems that have a direct impact on how power and authority are distributed and used. From a business perspective, changes in these machinations can affect the fate of your business in a variety of ways, regardless of your size or scope. Many external environmental factors can impact your business. It is common for managers to accurately assess each of these factors. The goal is always to make better decisions for the progress of the company. Some common factors are political, economic, social and technological factors (known as PEST analysis). Companies are also looking at environmental, legal, ethical and demographic factors.

Ultimately, the political environment as an entrepreneur is just one of many drivers of change you have to deal with. There is no way to fully insure your organization against adversity in this context. Fortunately, however, it`s not all about the fall; As with all things in life, change can be a positive opportunity if you`re smart enough to take it. The political structure of a country is one of the important considerations that a company should take before entering the country. There could be many political ideologies that could be present in their society. Therefore, it is suggested that the company understands the country before entering the country.