1. International Business Lecture No,12 By Dr.Shahzad Ansar

2. States in Transition Two Trends Democratic Revolutions
Decline in Centrally Planned
and Mixed Economies

3. Spread of Democracy Why? economic progress to the vast bulk of their
1. Totalitarian regimes failed to deliver
economic progress to the vast bulk of their
populations.
2. New information and communications
technologies, Internet, have broken down
the ability of the state to control access to
uncensored information.

4. Spread of Democracy have led to the emergence of increasingly
Economic advances of the last quarter century
have led to the emergence of increasingly
prosperous middle and working classes who have
pushed for democratic reforms.

5. FRANCIS FUKUYAMA
&
his Ideology

6. The future is in favor of Western liberal democracy
The future is in favor of Western liberal democracy. There will be an end of mankind's ideological evolution

7. Samuel Huntington
&
his Ideology

8. Clash of Civilizations
There is no “universal” civilization based on widespread acceptance of Western liberal democratic ideals.

9. The spread of Market-Based Systems
Shift
Centrally
Planned
Economies
Mixed
Market –
Based

10. The Nature of Economic Transformation
The shift to market-based economies entails:
Deregulation
Removal of legal restrictions to free
markets.
Privatization
Transfer of state ownership of property into private hands.
Legal Systems
Creation of systems to protect property
rights.

11. Implications for Business
Risks
Political
Economic
Legal
Ethics
Human rights
Regulations
Corruption
Foreign Corrupt Practices Act
Attractiveness
Benefits
First-mover advantages
Late-mover disadvantages
Costs