CT Module 02: Political, Legal and Technical Decision-Making

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International
Management:
Culture, Strategy, and
Behavior
Part One: Environmental
Foundation
Chapter 2: The Political, Legal, and
Technological Environment

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Political Environment

The political system or system of government in a country greatly
influences how its people manage and conduct business.
• Underlying the governmental actions is the ideology of the beliefs,
values, behavior, and culture of the nation and its political system.
• A political system can be evaluated along two dimensions.
• The first dimension is the ideology of the system.
• The second measures the degree of individualism or collectivism.

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2

Ideologies

Adopters of individualism adhere to the philosophy that people should
be free to pursue economic and political endeavors without constraint.
• Government interest should not solely influence individual behavior.
Collectivism views the needs and goals of society at large as more
important than individual desires.
• Societal goals and the decision of how to keep people focused on
them differ greatly among national cultures.
Socialism is a moderate form of collectivism in which there is
government ownership of institutions, and profit is not the ultimate goal.
• Social democracy refers to a socialist movement that achieved its
goals through nonviolent revolution.

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Political Systems

In a democracy, the government
is controlled by the citizens.

In totalitarianism, one party
controls political and human life.

• Directly or through elections.

• Power is often maintained by
suppression.

• Cannot exist without at least a
two-party system.
• They believe every citizen
should be involved in decisionmaking processes.

• Individual freedoms are
secured.

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• The most common form is
communism.

• Some parties govern based on
religious principles.
• “Right-wing” allows for some
economic (but not political)
freedoms.

4

Figure 2-1: Summary of Arab Spring Uprisings

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Source: Original graphic by Professor Jonathan Doh.

5

Legal and Regulatory Environment

There are four foundations on which laws are based around the world.
• Islamic Law: derived from interpretation of the Qur’an and the
teachings of the Prophet Muhammad.

• Found in Islamic countries in the Middle East and Central Asia.
• Socialist Law: comes from the Marxist socialist system and continues
to influence regulations in former communist countries.
• Common Law: comes from English law and the foundation of the
legal system in the U.S., Canada, England, Australia, New Zealand,
and other nations.
• Civil or code law: derived from Roman law
• Found in non-Islamic and non-socialist countries such as France,
some countries in Latin America, and Louisiana in the U.S.

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6

Basic Principles of International Law

International law is less coherent than domestic law.
• Principle of sovereignty—governments can rule as they see fit.
• There are three types of jurisdictional principles.
• Nationality principle, territoriality principle, protective principle.
• Doctrine of comity—mutual respect for the laws, institutions, and
governments of other countries in jurisdiction over their own citizens.
• Act of state doctrine—acts of other governments are considered valid
by U.S. courts, even if such acts are illegal/inappropriate in the U.S.
• Countries may refuse admission of foreign citizens and impose
restrictions on their conduct, travel, lodgings, and business they may do.
• A forum for hearing and settling disputes is a principle of U.S. justice as
it applies to international law.

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Examples of Legal and Regulatory Issues

Specific laws and situations directly impact international business.
• Financial services regulations.

• The integrated nature of financial markets means a regulatory failure
in one jurisdiction can impact other jurisdictions.
• The Foreign Corrupt Practices Act (FCPA)—it is illegal to influence
foreign officials through personal payment or political contributions.

• Restrictive foreign bureaucracies are a big problem facing MNCs.
• Privatization of state-owned enterprises opens opportunities for MNCs.
• Countries use their legal and regulatory policies on international trade
to affect the international management environment.

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8

Technology in the Next Decade

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The Internet
of Things.

Blockchain
technology.

AI and
Machine
Learning.

Robotics paired
with any of
these.

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Technological Environment and Global Shifts in Production

Technological advancements connect the world and aid in the increased
quality of products, information gathering, and R&D.

• Hunger and poor health care are worldwide
issues—biotechnology is working to raise
the standards.

With new
technological
advancement:

• MNCs are trying to improve e-business
operations in B2C transactions.

• Business costs
should decline.

• Developing economies are “leapfrogging”
telecommunications technology.

• Productivity should
increase.

• In the future, technology has the potential to
displace employees in all industries.

• Prices should go
down.

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10

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Critical Thinking Assignment
Module 02: Political, Legal and Technical Decision-Making
Question Requirements:
Complexities of Implementing AI Ethics
1. Summarize each of the three AI ethics approaches discussed in the article, “Reflections on
Putting AI Ethics into Practice: How Three AI Ethics Approaches Conceptualize Theory and
Practice”.
2. Evaluate how each AI ethics approach bridges the gap between theoretical ethical
frameworks and practical implementation in real-world AI systems.
3. Reflect on your own perspective regarding the integration of ethics into AI development based
on your analysis of the three approaches.
Directions:
• Write an essay that includes an introduction paragraph, the essay’s body, and a
conclusion paragraph to address the assignment’s guide questions. Do not address the
questions using a question-and-answer format.
Your well-written paper should meet the following requirements:
• Be 5 pages in length, which does not include the title and reference pages, which are never
a part of the content minimum requirements.
• Use Saudi Electronic University academic writing standards and APA (7th ed) style
guidelines.
• Support your submission with course material concepts, principles, and theories from the
textbook and at least two current, scholarly, peer-reviewed journal articles. Current articles
are those published in the last five years.
•

Ensure zero plagiarism. (very, very important)

In advance of submission, review the grading rubric to see how you will be graded for this
assignment.

Learning Outcomes
1. Evaluate the major environments in global business.
2. Assess the impact values have on ethical decision-making.
3. Evaluate ethical decision-making on a global level.
4. Analyze the impact of ethical issues on decision-making.
Readings
Required:
Chapter 2 The Political, Legal, and Technological Environment in International Management: Culture,
Strategy, and Behavior
Chapter 2 PowerPoint slides in International Management: Culture, Strategy, and Behavior
Bleher, H., & Braun, M. (2023). Reflections on putting AI ethics into practice: How three AI ethics
approaches conceptualize theory and practice. Science & Engineering Ethics, 29(3), 1–21.

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