Student name: Rimsha Khan

BA 288-5145 – W24
January 22, 2024

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

1) Why did Karl Marx criticize capitalism? Describe how he planned to correct those
shortcomings.

Karl Marx criticized capitalism because as per his theories, capitalism leads to exploitation of the
working class while they are unable to enjoy the fruits of their own labor. He argued that
capitalism leads to workers’ wages being reduced to levels of sustenance only and capitalists
make all the profits off of them. According to Marx, what the workers are paid does not reflect
their hard work. To correct these shortcomings, Marx suggested a radical change in society
brought about by the rise of communism. Marx believed that communism would mean the end of
the state, private property, and class divisions. He saw a society in which everyone shared
ownership of the means of production and resources were allocated according to the tenet of
"from each according to his ability, to each according to his needs." Marx thought that
communism would end labor exploitation, establish a society without classes, and end the
alienation that capitalism caused among workers.

2) Discuss collectivism. What ideals does the philosophy support? Where did the
philosophy start? How does collectivism exist in the modern world?

Collectivism is a political and philosophical movement places a premium on community interests

over individual ones. It endorses the concept that societal well-being and collaboration should
take precedence above personal goals. Collectivism originated in prehistoric cultures that valued
living in communities, and it became popular in a variety of contexts, such as socialist
organizations, religious movements, and tribal groupings. Collectivism is clearly visible in social
democracies and in other areas of modern administration, where policies give social welfare,
public services, and income equality first priority. significant social safety net nations frequently
uphold collectivist values, which place a significant emphasis on solidarity and shared
accountability for the wellbeing of society. Collectivism fosters social cohesiveness but also
provokes discussions about how to strike a balance between group objectives and individual
liberties.

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3) What are state-owned companies? Why do they usually perform poorly.

Corporations that are owned and managed entirely or in part by the government are known as
state-owned corporations. These organizations frequently function badly from the standpoint of
international business because of political meddling, bureaucratic inefficiency, and a lack of
competitive forces. Given that political factors often override economic efficiency in decision-
making processes, state-owned businesses may find it difficult to adjust to changes in the market.
These businesses could also struggle with a lack of creativity and accountability since political
objectives sometimes take precedence over financial ones. Ineffective resource allocation and
management can reduce competitiveness and cause businesses to perform worse than private
ones in the international marketplace.

4) Discuss individualism. Explain the key positions of the philosophy, it roots, and its role
in the modern economy.

Individualism is a political and philosophical perspective that prioritizes people's rights and
liberties. Individualism, which has its roots in Enlightenment concepts, upholds the fundamental
values of human liberty, self-expression, and self-determination. It promotes little government
involvement in private matters and places a strong emphasis on the pursuit of happiness and
prosperity on an individual basis. Individualism has a big impact on free-market capitalism in the
modern economy. It encourages competitiveness, entrepreneurship, and the idea that economic
prosperity brought about by personal achievement benefits society as a whole. Critics counter
that excessive individualism could exacerbate social inequality and disregard the welfare of the
group as a whole. One of the primary challenges in today's individuality talks is finding a
balance between society benefit and individual freedom.

5) Compare and contrast a pure democracy and a representative democracy. Which type of
democracy is more common today? Why?

The methods used in decision-making vary between a pure democracy and a representative
democracy. Voting on laws and policies allows citizens to actively engage in decision-making in
a pure democracy. A representative democracy, on the other hand, entails elected representatives
making choices on behalf of the populace. Large populations and a wide range of viewpoints
offer issues that representative democracies seek to solve. Representative democracies are
increasingly prevalent now because they work well in managing complex communities. Elected
officials are able to weigh arguments and make well-informed choices while striking a balance
between expediency and the requirement for broad public participation. Many nations have this
type of democracy, which makes for better government.

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6) Compare and contrast the four forms of totalitarianism.

Totalitarianism is the term used to describe political regimes in which the state tries to control
every element of public and private life and acknowledges no boundaries to its power.
Totalitarianism comes in four primary flavors: tribal, theocratic, communist, and fascist.

Fascist totalitarianism is demonstrated by excessive nationalism, dictatorial control, and the

repression of opposition. Nazi Germany and Fascist Italy are prime examples of this. Communist
totalitarianism, exemplified by Maoist China and the Soviet Union, promotes rigorous one-party
rule and state control over the means of production. Iran is an example of theocratic
totalitarianism, which combines religious and governmental authority to enforce laws based on
precepts from the religion. Less frequently seen in the past, tribal totalitarianism entails the
ultimate power belonging to a particular ethnic or tribal group. Although authoritarian control is
a common feature of both, the roles that religion and ethnicity play in government, as well as the
ideological underpinnings of power systems, are different.

7) Identify the three types of economic systems. How do these three types of economic
systems differ from each other? How are they the same?

The 3 primary forms of economic systems are: mixed economies, socialism/command economy,
and capitalism/market economy. The characteristics of capitalism in the United States include
market-driven decision-making and private ownership of the means of production. Socialism,
which is best represented by nations like Sweden, attempts to distribute wealth and promote
social welfare. It involves public or community ownership of some enterprises. Many nations,
like Canada, have mixed economies, which incorporate aspects of capitalism and socialism.
They permit private industry while still allowing for government intervention in specific sectors,
including healthcare and education. The ways in which these economic systems divide up the
function of the state, distribute wealth, and allocate resources are different. Individual initiative
and competition are key components of capitalism, community welfare is the emphasis of
socialism, and a balance between private and public interests is the goal of mixed economies.
Notwithstanding these distinctions, the three systems all strive for wealth and economic
expansion, but they differ in the extent to which the state is involved and regulates.

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8) Discuss why there is inefficiency in a monopoly situation. What is the role of the
government in such a situation?

When one party has a monopoly and there is little to no competition in the market, inefficiency
frequently results from the absence of competitive pressures. Because they have few alternatives
for customers to choose from, monopolies may not have strong incentives to lower prices or
enhance product quality. Price increases, decreased production, and a decline in innovation may
result from this. Governments frequently step in with antitrust laws and policies to combat these
inefficiencies. In order to safeguard consumer welfare, the government may be involved in
monopoly dismantling, fostering competition, and setting price controls. In order to promote a
more efficient and competitive market, governments may also encourage new rivals to enter the
market.

9) Discuss the effects of private ownership of production in a market economy.

In a market economy, private production ownership has a number of implications. First of all,
since private owners aim to maximize profits, it promotes efficiency and creativity. Efficiency is
a driving force behind many resource optimizations, cost savings, and technical innovations.
Second, private ownership encourages competition, which results in a wide variety of products
and services that satisfy the needs and preferences of customers. Because profits are concentrated
in the hands of private owners, it can also exacerbate economic inequality. Governments in
market economies frequently enact laws and policies to protect consumers, maintain fair
competition, and lessen the detrimental societal repercussions of income inequality in order to
address these problems.

10) What is a country’s legal system? Why is it important to international businesses?

The institutions, regulations, and norms that govern a nation's society and control different facets
of both public and private life are referred to as its legal system. It includes the courts, legal
processes, including civil, criminal, and administrative laws.

Understanding a nation's legal system is essential for foreign companies operating there in order
to navigate and abide by local rules and regulations. It supports businesses in adhering to the law,
resolving conflicts arising from contracts, and safeguarding intellectual property. The legal
system affects the overall risk and success of foreign operations by influencing commercial
practices, contract enforcement, and dispute resolution procedures. In order to prevent legal
issues and maintain sustainable operations, businesses must modify their plans to conform to the
legal frameworks of the nations in which they conduct business.

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11) Explain the differences between common law and civil law systems by the approach of
each to contract law.

The ways that the civil law and common law systems handle contracts vary greatly. Contract law
is mostly determined by court rulings and precedent under common law systems, such as those
found in the US and the UK. Courts use case-by-case decisions to interpret and evolve the law,
with a focus on adhering to established legal precedents, or "stare decisis"

Conversely, contract law is usually codified in extensive legal legislation in civil law systems,
such those found in many European nations. Written laws and rules that specify the rights and
responsibilities of contracting parties are prioritized. In civil law regimes, judges have less
discretion when interpreting legislation and are more concerned with enforcing the law than
setting precedent by case law.

12) Discuss the ways in which public action to violate property rights can occur.

Property rights violations by the public can take many different forms. One such instance is
eminent domain, in which the state appropriates private land for public use in exchange for
payment. Regulatory takings happen when laws significantly reduce the value of property and
affect the rights of owners. Additionally, confiscatory taxation can violate property rights by
restricting the advantages of ownership and enforcing unreasonably high taxes. Furthermore,
asset forfeiture laws provide police the authority to collect assets that may be linked to illegal
activity—often without following the proper legal procedures. A balance between the protection
of private property rights and the public interest is required because these activities, even if they
are occasionally seen to be necessary for the benefit of the public, raise questions regarding
individual property rights and the possible misuse of governmental authority.

13) What factors contribute to the attractiveness of a country as a market or investment site?

A nation's appeal as a market or location for investment depends on a number of criteria. It is

essential to have economic stability, which includes consistent growth and minimal inflation.
Investor confidence is bolstered by good regulatory conditions and political stability. Important
factors to take into account are having access to a trained labor pool, a strong infrastructure, and
an established legal framework. Attractiveness is also influenced by customer behavior, market
size, and demography. Moreover, nations that provide tax breaks, IP protection, and effective
transportation are more attractive. A nation's attraction to firms and investors looking for
possibilities is further enhanced by its technical preparedness, business-friendly environment,
and openness to international investment.

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14) Discuss the key factors that companies must be aware of before deciding to do business
in other countries.

Businesses must weigh a number of considerations before choosing to conduct business abroad.
For an entrance to be successful, it is essential to comprehend the local market circumstances,
including cultural quirks and customer preferences. Important factors include political stability,
compliance needs, and regulatory and legal frameworks. Decision-making is influenced by
economic variables such as market potential, inflation, and exchange rates. It is crucial to
evaluate the workforce's availability, logistics, and infrastructure. Businesses must assess other
possible risks as well, such as currency swings and geopolitical unpredictability. Successful
foreign commercial operations involve forging strong local alliances, adjusting to local business
methods, and guaranteeing moral and socially conscious behavior.

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