Establish the Business in Totalitarian or Democratic System

Introduction All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they†¦show more content†¦According to research, commerce prospers or is successful when business sector includes independently owned companies that exist to make and increase profits (Axtmann 89). A country such as Britain uses a democrat ic form of governance or political system, and because of this, the country is one out of the many countries that diverse companies want to venture their business it. This makes the country a stable business environment of international companies. Democratic political system business laws ensures all businesses especially in the private sectors are independent in that they carry out their own business operations with the intent of making profits and revenues; thus grows and improves the economy. In a totalitarianism political system, there is a difference in that this form of government has vague business laws. There is no guarantee that international enterprises would prosper in countries practicing this government. For example in North Korea, the business laws are nebulous in that multinational companies are not protected. The international firms can be taken by the government, and this occurs when there are international issues or wrong movements by the companies. This shows that it is risky to do business with totalitarian nations such as North Korea; thus it is not a conducive environment for international companies or businesses. The other reason that justifies that democracyShow MoreRelatedEuropean Totalitarianism During World War I1564 Words   |  7 Pagesgovernments that had some form of variance in their authority, but each nation proceeded to establish totalitarian governments. Russia was the first in which a totalitarianism state was established. Totalitarianism allowed the government to control every aspect of citizens’ lives. European totalitarianism experienced both strengths and weaknesses that affected citizens and rulers alike. 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