GlobalBusinessTodayNinthEditionChapter3NationalDifferencesinEconomicDevelopmentChapterOutlineOPENINGCASE:PoliticalandEconomicReforminMyanmarINTRODUCTIONDIFFERENCESINECONOMICDEVELOPMENTBroaderConceptionsofDevelopment:AmartyaSenPOLITICALECONOMYANDECONOMICPROGRESSInnovationandEntrepreneurshipAretheEnginesofGrowthInnovationandEntrepreneurshipRequireaMarketEconomyInnovationandEntrepreneurshipRequireStrongPropertyRightsCountryFocus:EmergingPropertyRightsinChinaTheRequiredPoliticalSystemEconomicProgressBegetsDemocracyGeography,Education,andEconomicDevelopmentSTATESINTRANSITIONTheSpreadofDemocracyTheNewWorldOrderandGlobalTerrorismTheSpreadofMarket-BasedSystemsTHENATUREOFECONOMICTRANSFORMATIONDeregulationPrivatizationCountryFocus:India’sEconomicTransformationLegalSystemsIMPLICATIONSOFCHANGINGPOLITICALECONOMYFOCUSONMANAGERIALIMPLICATIONS:BENEFITS,COSTS,RISKS,ANDOVERALLATTRACTIVENESSOFDOINGBUSINESSINTERNATIONALLYBenefitsCosts©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.44GlobalBusinessTodayNinthEditionChapter3RisksOverallAttractivenessSUMMARYCRITICALTHINKINGANDDISCUSSIONQUESTIONSCLOSINGCASE:RevolutioninEgyptLearningObjectives1.Explainwhatdeterminesthelevelofeconomicdevelopmentofanation.2.Identifythemacro-politicalandeconomicchangestakingplaceworldwide.3.Describehowtransitioneconomiesaremovingtowardsmarketbasedsystems.4.Explaintheimplicationsformanagementpracticeofnationaldifferenceinpoliticaleconomy.ChapterSummaryThischapterfocusesonthedeterminantsofeconomicdevelopment.Theauthormakesthepointthatacountry’spolitical,economic,andlegalsystemshaveadirectimpactonitseconomicpotential.Theimportanceofinnovation,alongwiththetypesofsystemsthatfacilitateinnovation,isdiscussed.Next,theauthordiscussesthepartsoftheworldthatareintransitionfromonepolitical-economicideologytoanother.Finally,thechapterendswithadiscussionofthemanagerialimplicationsofdifferingpolitical,economic,andlegalsystemsofacountry.OpeningCase:PoliticalandEconomicReforminMyanmarSummaryTheopeningcaseexploresthepoliticalandeconomicreformsinMyanmarthatarechangingthenation’sfuture.Fordecades,Myanmarlanguishedunderabrutalmilitarydictatorship.Withitseconomyatavirtualstandstillthankstocorruptionandpoormanagement,Myanmar,despiteiswealthofnaturalresources,becameoneofthepoorestcountriesintheworldatatimewhenitsneighborswereexperiencingrapideconomicgrowth.SanctionsbytheUnitedStatesandtheEuropeanUnionimposedinresponsetothecorruptbehaviorofgovernmentleadersexacerbatedthecountry’splight.Since2010,however,undertheleadershipofnewpresidentTheinSein,thesituationisimproving.Politicalandeconomicreformshaveallowedforthefreerelections,thereleaseofpoliticalprisoners,privatizationofstate-runenterprises,andtheencouragementofforeigninvestment.WhileitwillbesometimebeforeMyanmarcancatchupwithitsneighbors,thereisreasonforoptimism.Discussionofthecasecanrevolvearoundthefollowingquestions:©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.45GlobalBusinessTodayNinthEditionChapter3SuggestionDisc...