Establish the Business in Totalitarian or Democratic System free essay sample

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they expand in diverse countries with the intention of increasing profits, market, revenues, as well as to prosper and grow (Dlabay and James 15). Political systems play a significant role in ensuring all this aspects occur; therefore, it is vital to consider which political system a country has in order to ensure a stable business environment for international companies. This report will critically examine the common statement â€Å"Democratic political system, as contrasting to totalitarian political systems, present international companies with more stable business environments to invest†. Personally, I agree with the statement because of diverse reason that justifies democratic political system to be the ideal form of government that provides a stable business environment for international companies. The report will address why I agree with this statement and it will include all the supporting evidences from diverse countries using either of the political system. . Overview of democratic and totalitarian political systems Democratic political system is a system whereby the government leaders of a country are elected directly by a wide or broad participation of the population or their representative. It is noted that a pure democratic political system is one that all citizens of a given country or state participate or get involved in the pol itical process (Schaffer, Filiberto and Beverley 40) This form of the political system is considered more of an ideal or perfect system than a workable system. In democratic political environment, there is a representative democracy, which entails the nomination of individuals from groups with the intention of representing the political needs, as well as views of citizens. An example of a state that practices a democratic political system is Britain and also, all the European Union, Japan, all Latin America except for Cuba, Russian Federation and the USA. On the other hand, totalitarian political system is a form of the political regime whereby a country or nation is governed by a person or a single political party that exercises total control and power over all spheres of human life. This political system prohibits any opposing political parties in the country. It is whereby individuals in a country govern the country without the support of its citizens. Totalitarianism political systems are of different categories, which include theocratic and secular totalitarianism. Secular totalitarianism includes communist, right wing and tribal totalitarianism. In totalitarianism, all activities in the government are administered by a single person, who is a dictator or a group of people who take orders from the dictator. This political system strives to control and take over all aspects of both public and private behavior by influencing the entire country towards the common policies and goals of the government (Cernak 23). An example of the country that practices totalitarianism is North Korea. 3. Critical analysis of business environments in democratic and totalitarian politic systems. Democratic way of governance is more ideal and stable for businesses internationally. One of the key reasons is because democracies have laws that protect individual property rights. These laws ensure that rights of individuals are protected and secured. International companies prosper and grow when there are laws protecting the business. According to research, commerce prospers or is successful when business sector includes independently owned companies that exist to make and increase profits (Axtmann 89). A country such as Britain uses a democratic form of governance or political system, and because of this, the country is one out of the many countries that diverse companies want to venture their business it. This makes the country a stable business environment of international companies. Democratic political system business laws ensures all businesses especially in the private sectors are independent in that they carry out their own business operations with the intent of making profits and revenues; thus grows and improves the economy. In a totalitarianism political system, there is a difference in that this form of government has vague business laws. There is no guarantee that international enterprises would prosper in countries practicing this government. For example in North Korea, the business laws are nebulous in that multinational companies are not protected. The international firms can be taken by the government, and this occurs when there are international issues or wrong movements by the companies. This shows that it is risky to do business with totalitarian nations such as North Korea; thus it is not a conducive environment for international companies or businesses. The other reason that justifies that democracy government is a more stable environment for international businesses than the totalitarian government is the aspect of freedom. Freedom is all about liberty of people doing their own things though, not in violation of the country’s laws. Countries such as the US, Britain, Greece and many others ensure the freedom of businesses and market, which in turn attracts several companies to invest in the countries contributing to a high economic growth. The laws have freedom rights that secure individuals and their properties including their businesses. These freedom rights are essential for businesses because they contribute to the prosperity of the business. The freedom rights are also essential for a stable business environment because they ensure that business is done with liberty, in that companies carry out their own operations making their own decisions in regard to the growth of the business. This will ensure the growth of the company; thus essential for a stable environment for international business. Totalitarian governance lacks freedom in that it imposes authority. Totalitarian governance is all about dictating. This means that what the government says is followed with strictness. This is not appropriate for businesses if they want to grow and make profits of their own. Examples of a country that controls businesses include the Asian countries such as Iraq, North Korea and many others. These countries control the businesses that are carried out in the countries respectively. This aspect is not considered for international business because it imposition of authority would not make the international businesses make their own profits. This imposition of authority by government leaders control how the business will be operated, what they will sell and also how they will sell it. This control limits a company’s mode of growth in acquiring and making profits and revenues benefiting the company. Because of this, such countries with this government form are risky to carry out business with; thus not an essential environment for international business (Tanasoiu and Aniela 265). In practice, there are compared different aspects and situations of establishing business in California and North Korea (Table 1) Main aspects of Music Business in California and North Korea California| North Korea| 1. Survey age group and the type of music that the people listened to. In the United States, people are allowed to listen any type of music that | 1. The government determines the type of music that the people are allowed to listen | 2. Design an Internet web site| 2. A huge stumbling block is the information technology in North Korea. Very little, if any, Internet access exists| 3. Scout out the perfect location and rent a building in a very populated area| 3. Travel would be very restricted and this would hamper efforts to find a good location for business. There are necessary to know someone who could help through the complicated process there. 4. Have employees that would be responsible for details and create communication with them| 4. Problem with communications because of close mind and probably different education, religion and culture | 5. Go to the county and get a building permit. | 5. There are necessary to convince the government officials that company would only sell music that they agreed to. Bribes are accepted. | 6. Hire someone to desi gn the store. | | 7. Use television, radio and billboards to advertise the store| 7. Bringing supplies for the business into the country would be a real challenge. Since the country is technology challenged, it is uncertain if people even own the electronics that are necessary to play music. | 8. Numerous financial institutions in the United States where the company will be able to borrow money without any problems and use banking service in general| 8. Poor financial sector. | Table 1 In totalitarianism countries, international businesses or companies are at risk of downfall due to the extensive political risk involved. For example, Iraq, the country has numerous political risks, which include terrorism, violence and property seizures cause the downfall of a business. A country such as China, which includes political risks such as local content requirements and policy changes do not portray a stable environment for international companies. These political risks can cause international companies to fall; thus lose their businesses, profits, sales and market. This environment is not ideal for business (Peng 36). However, the democracy nations such as, Canada, Russia, India, the US and others also have political risks, but they are not extensive as the totalitarian countries. These countries have laws that protect companies in cases such as political risks or any other risks. These laws are what makes international companies venture in democratic nations making these nations more stable for the business environment than the totalitarianism governance nations. Conclusion Political systems do matter when it comes to international business venturing or investment. This is because they play a fundamental part in ensuring companies do grow and prosper. Democratic political system nations provide a more stable environment for international business because they are governed by laws, entails freedom of individuals and property, rights and no censorship. These factors are highly essential for a business environment in regard to political structures. Totalitarianism political system nations have imposed authority, vague business law and they lack constitutional guarantee on business. These factors make these countries practicing this form of governance, not an ideal environment for international business. Because of these factors, I support the statement that democratic political system provides a more stable international business environment than the totalitarianism political regime. Executive summery We live in a world in which counterfeiting, plagiarism and piracy are on the increase. A world in which products are unlawfully imitated, trademarks and designs are infringed, copyright is violated and music is downloaded illegally. Intellectual Property rights are infringed in more and more territories worldwide. The need for brand protection and anti-counterfeiting has therefore never been as urgent as it is now. This report will seek explain what is the current level of the agreed intellectual property protection under the World Trade Organisation (â€Å"WTO†) TRIPS Agreement and how the proposed Anti-Counterfeiting Trade Agreement (â€Å"ACTA†) would change that. Also there are will be determine the actions companies and governments can take to ensure that products cannot be easily pirated. Introduction Concern about piracy and counterfeiting is growing. Research by the European Commission shows that more than 100 million counterfeit products are seized every year in the EU alone. A significant portion of the counterfeit products come from China (64%), but other countries like the United Arab Emirates (Abu Dhabi and Dubai) and Taiwan are also creating unprecedented flows of counterfeit products. Counterfeit products are flooding the markets and also stimulate unwanted parallel imports, not only harming businesses but also consumers. Due to the growth of the internet as a sales channel, international markets and sales channels are getting closer and closer. Of course, online sales provide a fantastic opportunity for businesses, but it can be worrying at the same time. While it used to be only counterfeit watches or clothes that were traded online, these days medicines, vitamins, and even aircraft parts are also being replicated. International law: intellectual property protection In 1994, the United States, the EC and its Member States and other developed countries, created a new trade treaty on Intellectual property in part in recognition of â€Å"the need for a multilateral framework of principles, rules and disciplines dealing with international trade in counterfeit goods † among other reasons. That treaty, which is part of the Agreement Establishing the World Trade Organization (WTO), is called the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The TRIPS Agreement established for the first time a single, comprehensive, multilateral set of rules covering all kinds of Intellectual property rights. The TRIPS Agreement is, by its coverage, the most comprehensive international instrument on international property rights. The agreement establishes minimum standards on copyright and related rights, including computer programmes and databases, trademarks, geographical indications, industrial design, patents, integrated circuits and undisclosed information. The standards of protection relate both to the availability of rights as well as their enforcement. This means that member countries cannot, in the specific areas and issues covered by the agreement, confer a lower level of protection than provided under the agreement. It is difficult to comprehend what it is that ACTA seeks to add to the already comprehensive TRIPS Agreement. However one of the major justifications for ACTA is that the proliferation of counterfeit goods poses an ever increasing threat to the sustainable development of the world economy. It is a problem with serious economic and social consequences. Recently there have been a number of challenges which have made the problem more pervasive and harder to tackle; namely, the speed and ease of digital reproduction; the growing importance of the internet as a means of distribution; the sophistication and resources of international counterfeiters; and the increase in the volume and types of dangerous counterfeit goods . Whilst this is recognized as a threat to world wide economies it is difficult to see how this aim differs from that of the TRIPS agreement, . . e. the need for multilateral framework of principles rules and disciplines dealing with international trade in counterfeit goods to support the need for this treaty. Therefore the main thrust of ACTA is to provide safe harbour for service providers so that they may not hesitate to provide information about infringers; this may be used, for instance, to quickly identify and stop infringers once their identities are c onfirmed by their providers. Similarly, it provides for criminalization of copyright infringement, granting law enforcement the powers to perform criminal investigation, arrests and pursue criminal citations or prosecution of suspects who may have infringed on copyright. It also allows criminal investigations and invasive searches to be performed against individuals. Also, Stop Online Piracy Act (SOPA) and Protect Intellectual Property Act (PIPA) are two bills take aim at Web sites that promote piracy and theft of intellectual property. But now it is sharp and controversial issue as there are many negative views about the benefits of these laws. On the one hand it will reduce the level of piracy, but on the other hand, it is inconsistent with the law on the free right to receive information. In addition, it will have enormous impact on students and the scheme of doing business in general because of large number of transactions conducted through the Internet. Actions which can help to protect brands from piracy A Patent is an exclusive right granted for a new invention â€Å"The Patent System added the fuel of interest to the fire of the genius†, that was a famous quote by Abraham Lincoln. Similar to copyrights, patents are intended mainly to promote the progress of science and useful arts, that’s through encouraging the disclosure of the invention which may add to and enrich its technical field. Moreover, patents are considered as a kind of recognition and material reward for the inventors, as well as incentives that induce innovation. Unlike copyrights, a patent must be registered to obtain legal protection. A patent is registered by simply filling in a Patent Application. This application should include all information concerning the invention, such as its title, its technical field, a detailed background and description of the product or the process. Such description should be very clear and detailed and should include visual illustrations such as drawings and diagrams so that any other one in the field could be able to understand and reproduce that invention. The Application should also, contain claims of the extent of protection granted by the patent. In general, inventors must apply for patents in each country where they wish to commercially exploit their invention. In each country, there’s a National Patent Office, through which inventors can register their patents. There are also Regional Offices such as the European Patent Office, where an applicant can obtain a European Patent that will be equivalent to a national patent in each of the member countries designated by the patent. The WIPO had administered a Patent Cooperation Treaty in 1970, whereby an applicant can apply for an International Patent Application and obtain protection in as many member countries as he wishes. Basically, a trademark is a distinctive sign that distinguishes certain goods or business. According to a code adopted in 1963 by the International Assembly for the Protection of Industrial Property, this identifying symbol could be could be, a word, a slogan, a drawing, a symbol, a color, the shape of the product or its packaging, audible signs such as music or a sound. A trademark could also be a brand name such as IBM computers or BMW motors. Companies are developing special decals of their products which are difficult to fake pirates. For example, Nemiroff Company since 2002 to protect their vodka against counterfeiting with a laser. After spending $ 1 million, Nemiroff has mastered the technology of the pplication date of manufacture of the product on the neck and cap of the bottle so that the numbers are strictly located one above the other. In 2007, the Ukrainian producer has spent another $ 6. 6 million, equipping the original bottle more visible landmark a cap-detector, in which, after first opening the bottle there is a red ring. Thus the development of special stickers and protective signs on products allow to distinguish the original from a fake. Recommendations Registering Domain Names A company has to register an Internet domain name similar to the name of the brand it wants to protect from piracy. Then it can host a website where customers can find information about the genuine product. To prevent other people from registering a similar name with different domains, company can register the same domain name with various extensions such as . info, . org and . us. Properly organize and trademark the company name. A company always should be formally incorporated or organized as a limited liability company. However, in many cases, the name of the company also should be trademarked. For example, Google is a corporation organized in the state of Delaware. At the same time, the word Google is a registered trademark of Google Inc. By both incorporating and trademarking the name, the founders of Google were able to gain the most legal protection for this very important brand. Trademark all derivatives of the company name and its products. For example, Pepsi has trademarked the names and logos of products such as Pepsi Next, Pepsi Vanilla, Cherry Pepsi and so on. Before going into a new market or introducing a new product, thoroughly research the prospective name or names and secure their protection. Even when the company has taken precautions, people may still pirate the brand, so its important to conduct brand monitoring. Make routine Internet searches to find out if someone is selling a product with the same brand name online. Send people to stores for random checks to see if any business has stocked a pirated version of product. Enforcement Procedures Protect the brand by using enforcement procedures in the government jurisdictions where the brand could be pirated. For example, a company in a particular country may copy the brand and produce it. Ask the government there about the procedures it uses to enforce trademarks. This may act as a deterrent.