Establish the Business in Totalitarian or Democratic System

Topics: Trademark, Patent, Copyright Pages: 10 (3390 words) Published: October 24, 2012
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 expand in diverse countries with the intention of increasing profits, market, revenues, as well as to prosper and grow (Dlabay and James 15). Political systems play a significant role in ensuring all this aspects occur; therefore, it is vital to consider which political system a country has in order to ensure a stable business environment for international companies. This report will critically examine the common statement “Democratic political system, as contrasting to totalitarian political systems, present international companies with more stable business environments to invest”. Personally, I agree with the statement because of diverse reason that justifies democratic political system to be the ideal form of government that provides a stable business environment for international companies. The report will address why I agree with this statement and it will include all the supporting evidences from diverse countries using either of the political system. 1. Overview of democratic and totalitarian political systems Democratic political system is a system whereby the government leaders of a country are elected directly by a wide or broad participation of the population or their representative. It is noted that a pure democratic political system is one that all citizens of a given country or state participate or get involved in the political process (Schaffer, Filiberto and Beverley 40) This form of the political system is considered more of an ideal or perfect system than a workable system. In democratic political environment, there is a representative democracy, which entails the nomination of individuals from groups with the intention of representing the political needs, as well as views of citizens. An example of a state that practices a democratic political system is Britain and also, all the European Union, Japan, all Latin America except for Cuba, Russian Federation and the USA. On the other hand, totalitarian political system is a form of the political regime whereby a country or nation is governed by a person or a single political party that exercises total control and power over all spheres of human life. This political system prohibits any opposing political parties in the country. It is whereby individuals in a country govern the country without the support of its citizens. Totalitarianism political systems are of different categories, which include theocratic and secular totalitarianism. Secular totalitarianism includes communist, right wing and tribal totalitarianism. In totalitarianism, all activities in the government are administered by a single person, who is a dictator or a group of people who take orders from the dictator. This political system strives to control and take over all aspects of both public and private behavior by influencing the entire country towards the common policies and goals of the government (Cernak 23). An example of the country that practices totalitarianism is North Korea.
3. Critical analysis of business environments in democratic and totalitarian politic systems.

Democratic way of governance is more ideal and stable for businesses internationally. One of the key reasons is because democracies have laws that protect...
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