Globalization, The Political, Economic, And Legal System

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Globalization and political economy

Doing International business is not the same as doing domestic business. In order to succeed in international business, the manager should know political economy of the country where he need to do business and understand how this political economy could affect his business. In the first unit of our course, we discussed the major elements which help us to understand globalization, the political, economic and legal system and how they can affect the business.

1. Understanding globalization
Globalization is a process of breaking the economic difference and barrier among nation in order to get an interdependent and integrated world. The goal of globalization is to achieve an integrated and interdependent market and production. In order to achieve this goal, different international
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 The raise of many countries to the level of developed countries in the 21 century.
Even if the impacts of globalization are visible in the world, not all people agree with it. The contestants think that globalization has many disadvantage such as:
 The loss of job and income in developed countries when manufactures move to less developing countries.
 The lack of labor policies and environment regulation in developing countries which encourage multinational companies to move in these countries and to destroy the environment and to abuse workers.
 Countries loss their sovereignty by compelling with the international law and regulation,
 The increase of gap between the developed countries and the developing countries caused by globalization.
Understanding globalization lead manager to know how to do international business, however, understanding the political, economic and legal system will help him to make a right decision about where to do the

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