COMM 211 Global Business FINAL EXAM 2025 NEW TIPS
NOTES Concordia University
CHAPTER 2: COUNTRY DIFFERENCES IN POLITICAL
ECONOMY L0:
- The political, economic, and legal systems of a
country are INTERDEPENDENT.
o They influence each other.
- The political economy and culture of a nation ARE NOT
INTERDEPENDENT.
L01:
Political Systems are assessed according to 2
dimensions: COLLECTIVISM & INDIVIDUALISM
◦ Collectivism: views the needs of society as more important
than the needs of an individual.
◦ Advocacy for state intervention in economic activity
▪ Plato: "Individual rights should be sacrificed for the
good of society"
◦ Individualism: Focuses on the interests of the individual
over the interests of the state. Individual freedom in the
political, economic, and cultural realms
o two tenets:
▪ Individual Freedom and self-expression (Mill)
▪ Let people pursue their economic self-interest (Smith)
, o Aristotle: "Private property is more highly productive
than
communal property and will thus stimulate progress."
*Systems that emphasize COLLECTIVISM tend toward
TOTALITARIAN
* Systems that emphasize INDIVIDUALISM tend to be
DEMOCRATIC
◦ Democracy: Government is by the people, either directly or
through an elected representative
o Democracy demands:
▪ Freedom of expression
▪ Free media
▪ Regular electionsLimited terms for
representativesFair court system
▪ Nonpolitical police and army
▪ Relatively free access to state information
▪ It IS possible to have a democratic society that
emphasizes a mix of collectivism and individualism.
◦ Totalitarianism: One-person (or political party) exercises
absolute control over all spheres of human life.
o Basic political freedoms are denied to citizens
, o It is possible to have totalitarian societies that are
NOT collectivist.
◦ Socialism
o Karl Marx
o The idea is to manage state-owned enterprises to
benefit society, rather than individual capitalists.
o Socialist ideology split into broad camps:
▪ Communism: revolution and totalitarian dictatorships
• Property is publicly owned, and each person
works and is paid accordingto their abilities/
needs.Social
Democrats: socialism by democratic means
Four major forms of totalitarianism:
• Communist totalitarianism (ex: Cuba, North Korea,
Laos)
▪ A version of collectivism advocating that socialism
can be achieved only through totalitarian
dictatorship
• Theocratic totalitarianism (ex: Islam - Saudi Arabia,
Iran)
▪ Found in states where the political power is
monopolized by a party, group, or individual that
governs according to
religious principles.
• Tribal totalitarianism (ex: Zimbabwe, Tanzania,
Uganda)
▪ Occurs when a political party that represents the
interests of a particular tribe monopolizes power.
• Right-wing totalitarianism (ex: Italy/Germany in the 60's)
▪ Permits some individual economic freedom but
restricts individual political freedom because it
would lead to the
rise of communism.
L02:
Economic Systems:
• Three types of economic systems:
1. Market Economy:
o All productive activities are PRIVATELY owned (not by the
state)
o Prices are free of controls
o Production and price are determined by supply and
demand
2. Command Economy:
o prices are all planned by the government.
o Businesses are STATE-OWNED (so that the
government can direct them to make investments that
, are in the best interest of the nation)
o Private ownership is forbidden
o The goal is to mobilize economic resources for the public
good
NOTES Concordia University
CHAPTER 2: COUNTRY DIFFERENCES IN POLITICAL
ECONOMY L0:
- The political, economic, and legal systems of a
country are INTERDEPENDENT.
o They influence each other.
- The political economy and culture of a nation ARE NOT
INTERDEPENDENT.
L01:
Political Systems are assessed according to 2
dimensions: COLLECTIVISM & INDIVIDUALISM
◦ Collectivism: views the needs of society as more important
than the needs of an individual.
◦ Advocacy for state intervention in economic activity
▪ Plato: "Individual rights should be sacrificed for the
good of society"
◦ Individualism: Focuses on the interests of the individual
over the interests of the state. Individual freedom in the
political, economic, and cultural realms
o two tenets:
▪ Individual Freedom and self-expression (Mill)
▪ Let people pursue their economic self-interest (Smith)
, o Aristotle: "Private property is more highly productive
than
communal property and will thus stimulate progress."
*Systems that emphasize COLLECTIVISM tend toward
TOTALITARIAN
* Systems that emphasize INDIVIDUALISM tend to be
DEMOCRATIC
◦ Democracy: Government is by the people, either directly or
through an elected representative
o Democracy demands:
▪ Freedom of expression
▪ Free media
▪ Regular electionsLimited terms for
representativesFair court system
▪ Nonpolitical police and army
▪ Relatively free access to state information
▪ It IS possible to have a democratic society that
emphasizes a mix of collectivism and individualism.
◦ Totalitarianism: One-person (or political party) exercises
absolute control over all spheres of human life.
o Basic political freedoms are denied to citizens
, o It is possible to have totalitarian societies that are
NOT collectivist.
◦ Socialism
o Karl Marx
o The idea is to manage state-owned enterprises to
benefit society, rather than individual capitalists.
o Socialist ideology split into broad camps:
▪ Communism: revolution and totalitarian dictatorships
• Property is publicly owned, and each person
works and is paid accordingto their abilities/
needs.Social
Democrats: socialism by democratic means
Four major forms of totalitarianism:
• Communist totalitarianism (ex: Cuba, North Korea,
Laos)
▪ A version of collectivism advocating that socialism
can be achieved only through totalitarian
dictatorship
• Theocratic totalitarianism (ex: Islam - Saudi Arabia,
Iran)
▪ Found in states where the political power is
monopolized by a party, group, or individual that
governs according to
religious principles.
• Tribal totalitarianism (ex: Zimbabwe, Tanzania,
Uganda)
▪ Occurs when a political party that represents the
interests of a particular tribe monopolizes power.
• Right-wing totalitarianism (ex: Italy/Germany in the 60's)
▪ Permits some individual economic freedom but
restricts individual political freedom because it
would lead to the
rise of communism.
L02:
Economic Systems:
• Three types of economic systems:
1. Market Economy:
o All productive activities are PRIVATELY owned (not by the
state)
o Prices are free of controls
o Production and price are determined by supply and
demand
2. Command Economy:
o prices are all planned by the government.
o Businesses are STATE-OWNED (so that the
government can direct them to make investments that
, are in the best interest of the nation)
o Private ownership is forbidden
o The goal is to mobilize economic resources for the public
good
