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Looking to the Future: Political Risk

What Might Become of Democracy? 154

153

| Point | g ^ | ^ ^ ^ j 3

Should Political Risk Management Be an Active Strategy?

Types of Legal Systems

158

The Diffusion of Legal Systems

Trends in Legal Systems

160

159

The Legal Environment

Legal Systems

158

157

Understanding Bases of Rule Implications for Managers

161 162

Legal Issues in International Business

164

Operational Concerns Strategic Concerns

166

164

Intellectual Property Rights

168

CASE: Crime That Pays (and Pretty Well, Too)

Summary

177

Key Terms

178

Endnotes

178

172

4

The Economic Environments Facing Businesses

180

C A S E : Economic Conundrums and the Comeback of Emerging Economies

Introduction 184 International Economic Analysis

186

Elements of the Economic Environment

187

Gross National Income

187

Features of an Economy Inflation 196 Unemployment Debt 198 Income Distribution Poverty 200 Labor Costs Productivity 201 202 197

196

199

The Balance of Payments

202

| Point |gj@flfl§3^^fl Is a Trade Deficit an Advantage?

204

Integrating Economic Analysis

206

Types of Economic Systems

206

Economic Freedom and Market Transitions Making the Transition to a Market Economy

209 21 I

Looking to the Future:

Is There a Move to Push Back Economic

C A S E : Meet the BRICs

Freedom? 218

216

Summary

222

156

181

Contents

J

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