BUS 203: BUSINESS ENVIRONMENT

Section: 03

Fall 2013
Nov 2, 2013

L12

Admin
Midterm in the next class
RP1: Update plenty plagiarism, ~7 late, ~3 hardcopies missing
Makeup classes
Update Nov 2, 23 & 30

Todays topic Political Environment and Business Climate

Midterm Review

Todays topic
Political Environment and Business Climate
1. Ian Worthington and Chris Britton. The Business
Environment, pp. 57-95.
2. Hand-out

Political Environment and Business

General Observations
The nature of the system - the institutions reflects underlying
social values and philosophies, i.e., laidback, red-tape, lack of
structure, etc.
Changes emanating from institutional arrangements
Regular reelection, change in political belief, discontinuity

Political influences are not restricted to national boundaries

MNC, influential governments, international organizations

Impact of political factors vary depending on the type of

organization
Small firm local condition vs. MNC bigger market, cross-border angle

Businesses can be proactive in shaping the political environment

Lobbying, influencing policymakers, etc.

Political Systems
Nature of political activity
Politics is concerned with processes that help to contain conflicts,
settle issues.
Government institution
exercise of authority and power

Authoritarian political systems

Individual or group monarch, military, a party

Democratic political systems

Referendum individuals have equal influence (pure

democracy)
Represented or indirect influence
5

Three brunches or functions of the govt.

The legislative function

Making and/or changing laws

Bicameral legislature - upper house - lower house
Checks and balance
Parliamentary system executives are also part of legislative

The executive function

Implementing, managing the policies and decisions

The judicial function

Enforcing the law