Political system- is the means by which people in a society make the rules that control and influence their lives. 2.
Democracy- all citizens have the opportunity to take part in making the rules that govern them. 3.
Totalitarian system- most people are excluded from making the rules by which they live. Political control is held by one person, a small group of people, or one political party. 4.
Host country- is the country in which a multinational enterprise is a guest. 5.
Social responsibility- is the process whereby people function as good citizens and are sensitive to their surroundings. 6.
Home country- is the country where a multinational enterprise is headquartered. 7.
How are businesses owned in a democracy?
People have the freedom to own and operate private businesses. Democratic societies, therefore, usually have a market economy. 8.
How are businesses owned in a totalitarian system?
Totalitarian systems usually have command economies, the national government own and controls almost all businesses. Individuals are allowed to own a small one-employee business. 9.
What relationship does a global company have with a host country and its home country? Host countries expect multinational enterprises to comply with societal and legal expectations and standards. Home countries expect multinational enterprise based within its borders to demonstrate social responsibility. 10.
Farmers must produce a required quantity of crops to meet government requirements. Totalitarian System
Citizens are free to start and operate any kind of business. Democracy
Government owns most businesses.
Government regulates some large businesses in the essential industries, but the businesses are most likely privately owned. Mixed
Would a totalitarian system of government encourage or discourage trade with other countries? May discourage trade to gain control, or may encourage to expand economic growth. 15.
Explain how a...
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