8.2 Economic Systems

Why would a business want to consider the political-economy system of a country?

If a country has a strict political-economy system, the businesses will have less discretion over the operations of their business. For example, socialism is disliked in the US. because it limits the rights of a business to own property.

In countries with less strict political-economy systems, there is more risk involved but greater freedom in deciding how to manage the production factors of business.

Interesting fact:

German philosopher Karl Marx developed Marxism, which was a political-economy system that laid the foundation for communism and socialism.