Establish the Business in Totalitarian or Democratic System

In 1948, Korea was divided into two countries: North Korea and South Korea. Unlike South Korea, North Korea is still a very closed economy. There is not a lot of foreign investment inside the country except from South Korea and China. North Korea is a one party controlled country so the government is everywhere. Public service is completely under government control. Everything from construction to financial services is controlled by the government. Corruption can be seen more in North Korea because of the serious shortages of foods, goods, and housing. If the company is trying to do business with North Korea, they have to seek help from government officials, which means they have to pay a bribe.

In an autocracy government, power is ruled by one person and the leader has an absolute authority over politics and business sectors. If businessmen invest their money in any business, the head of the government must be satisfied, who is the autocratic leader, otherwise it would be no way to survive. Unfortunately, today some parts of the world still struggling having autocratic leaders and their people are in turmoil in terms of investing because there is not a stable government. However, some argue that autocratic governments are stable environments for business because since one person has the control and the leader might not get involved for levying mass taxes on businesses or monopolizing business sector. On the contrary, business has grown up in democratic nations for the last decades since, businessmen are stable in democratic nations. In this essay, I talk about different points of views of scholarly writers whom they believe which government system is a better environment for business. Facts and analysis will determine the betterment of business in democracy or autocratic?

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Governments might change or new political parties might be elected, but the concern of the multinational corporation is the continuity of the set of rules or codes of behavior and the continuation of the rule of law—regardless of which government is in power.

When pursuing international growth, there are market specifications, such as technological, political-legal and sociocultural conditions11, which need to be taken under consideration as whose recognition is significant. While the technological and political-legal progresses are under continuous development (e.g. internationalization, amalgamation of countries/regions, trade zones), intercultural differences are nearly steady but due to numerous dimensions not easily measurable and of high complexity. However, related to the general decision and first steps of market entries it is essential to be fully aware of all conditions of the target

The concept of power has been seen through the decades, from the establishment of ancient civilizations such as the Romans and the Persians, to modern day countries such as North Korea. There has been no change in the fact that countries now and then want to possess power over the people that enlist under it. This is also known as a totalitarian government. A totalitarian government is defined as political authority or group that exercises absolute control over all aspects of life of an individual. The centralized government, known as The Party or INGSOC, in the book, 1984 by George Orwell demonstrates a totalitarian style of government over the Inner and Outer Party members in Oceania. The Party is headed by Big Brother, who is the original

The political-legal environment is that which consists of government bodies, pressure groups and laws. It is pertinent for companies to keep abreast of and change in political environment because these changes can have dramatic effect. Change in political environment can see legislation introduced that will not make selling or providing a product feasible or somewhat difficult. There are many political factors and laws that can affect business. Pricing, competition, fair trade packaging, labelling, advertising, product safety and minimum wages can all affect business. The

Generally, the dominant role of government in business, as many would agree, is to provide an enabling environment for economic activities that improve commerce. According to The Marketing Education Research Center (2009), this is achieved through the protection of business property, enforcement of contracts, settling business disputes, and encouraging entrepreneurship. The 21st century, with regard to globalization and

The political environment in a country affects its business environment which in turn, affects the performance of a business organization. (Asdullah, M. et al, 2015). A lack of political stability in a country causes negative effects on business operations. Therefore, businesses strive to enter countries that are relatively politically stable. The Beri Index is a tool that measures the risk to a business by rating a country’s political stability inter alia. The United Kingdom’s (UK) political stability was rated at an index of 3, which is above average, making it an ideal country to operate in (Online.uwl.ac.uk, n.d.).

The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.

Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).

International business today has exceeded more than any person has ever thought it would, countries are doing more trading and importing now than ever. International business can affect everyone, from small business owners to big companies all over the world. A country that comes to mind that does a lot of international business is the United Kingdom (UK). This paper will include the following: the background of the country, economic environment, government policies, international economic integration and business environment, and current events. By the end of this paper you will be able to know everything about the UK and if you want to construct business or take business out of this country.

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.

International business is not possible when the government of the home and host countries are not mutually interested and benefited in the trade. MNC’s always strive to build better relationship with the home and host ruling government.

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's