The political and economic institutions of a country influence a country’s economic growth and development. In international business there is considerable risk involved; risk in the political, economic and legal systems of countries. The level of development of the political and economic stability and development determine the ability of foreign investment to mange its risk. In today’s world economy, global markets are sometimes key to increased profits and expansion. The political and economic institutions set the rules of the game, providing the framework in which business can establish their market.
Economic growth can be measured in different ways including GDP (gross domestic product), HDI (human development index), and PPP (purchasing power parity). Each of which have their flaws however they are still good indicators as to the level of development.
Long run growth can be attributed to innovation and entrepreneurship. The political economy will affect the......
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Approximate Word Count: 1485
Approximate Pages: 6 (260 words per double-spaced page) |