2. How Many Countries Are There in the World? Have you ever wondered how many countries there are in the world? Did you know that there is not an accepted answer to this question? Depending upon which country or organization you ask, the answers vary from 199 to 266!

3. What is “politics” The art or science of government competition between competing interest groups or individuals for power and leadership (as in a government)

4. Political System System of government in a country Means by which people in any society make the rules by which they live

5. Political System Classified by two factors: Individualism vs. collectivism Democratic vs. totalitarianism Look at: Who makes the decisions in the system Number of personal freedoms and rights

6. Individualism Individual freedoms People pursue self-interest for good of society Collectivism State must manage enterprises to benefit society

7. Democracy Extensive individual rights and freedoms All people take part in making the rules that govern them Totalitarianism Most people excluded from making rules; political control is held by one person or small group Limited rights and freedoms

8. In reality…

9. Forms of government Democracy – population take an active role in government Constitutional Monarchy – royal head of government with limited role Absolute Monarchy – holds central power and rules Dictators – monarchs/civilians/military rulers with central power

10. Political Parties Organized group of individuals who try to exercise power in a political system by winning control of the government or influencing governmental policy

11. Some countries have just a few political parties (U.S. and U.K. have 2) Some have a one party system where the person nominated by the party gets position (Japan) Some countries have many parties (South Africa has 8; Bolivia has 28)

12. Political environment matters because When economic freedoms are restricted, so may the ability of an international business to operate in the most efficient manner When political freedoms are restricted there are ethical and legal risks that have to be considered

13. Governments make the rules under which companies must operate

14. International Businesses most hope for…. stability

15. Governments that change 32 “new countries” since 1990 Slovenia, Croatia, Bosnia and Herzegovina and Macedonia used to be Yugoslavia

16. USSR is now Estonia, Latvia, Lithuania, Belarus, Ukraine, Turkmenistan, Azerbaijan, Kazakhstan, Tajikistan