Discussion on National Differences in Political Economy

Explain how the political systems of countries differ.

The political systems of different countries are not the same. In some countries there is democracy and in some countries, there is the monarchy. Understanding the political system is essential because different political systems have their own benefits and drawbacks. In a democracy, the people of the country have the right to elect the representative. Basically, democracy is of two types which include representative democracy and direct democracy. In countries like the USA, there is a representative democracy. Another political system that different countries follow is the republic political system in this political system citizens of the country legitimize the government (political science degree, 2011).

The key types of republic systems include a single party, capitalist crowned republic and federal republic. The United States is often called a federal republic. Monarchy is also another type of political system which still can be seen in different countries. The monarchy is of two types’ absolute monarchy and constitutional monarchy. In the countries which include United Kingdom, Sweden, Kuwait and Denmark there is a constitutional monarchy. So it can be said that in different countries the way of governing the countries is different which has an impact on different things like business, economics and the politics of the countries. If any country wants to trade with another country than it should evaluate their political system of the country.

Explain how the economic systems of countries differ.

Before conducting trade not only the political system should be evaluated but also the economic system as well. There are different types of economic systems which include the command economic system, free-market system, and a mixed market system. In the command economic system, the government controls the economy. The government plans economic activities and provide resources. The plus point of command economic system is that the resources are being utilized efficiently. In a free market economy, the government does not intervene in economic activities. In free-market economy, there is significant amount of competition as well.

In the free market economy, the business competes with each other so that they can enhance their market share. The companies perform a high level of research and development so that they can provide high-quality products to the customers. As there is a huge amount of competition in the market the companies have to provide high-quality products so that they can grab the attention of the customers. The customers pay a high price for the products to the companies. The mixed economic system is the combination of a command economic system and a free-market economic system (agrawal, 2019).

Explain how the legal systems of countries differ

In different countries not only the political and economic systems are different but also the legal systems are also different. In North America, including the United States, common law is being implemented. In many parts of the European countries, civil law is being implemented. In the Middle East, Muslim law is being implemented. It is very important to analyze the legal system of different countries before going or doing business in different countries.

Explain the implications for management practice of national differences in the political economy

It is important to have deep insights regarding the differences that occur in different nations. The political-legal and economic system of any country shows the attractiveness of the region. Different countries consider investing in the country after evaluating their legal and economic system.

References of National Differences in Political Economy

agrawal, p. (2019). The Four Types Of Economies. Retrieved from https://www.intelligenteconomist.com/types-of-economies/

political science degree. (2011). The Five Most Common Political Systems Around the World. Retrieved from https://www.politicalsciencedegree.com/the-five-most-common-political-systems-around-the-world/