National Differences in Economic Development

Summary for Chapters 3, 4, and 5
Student's Name
Institutional Affiliation
Instructor
Date
Chapter Three: National Differences in Economic Development
The chapter reviews how the legal, economic, and political systems vary from one another and how they affect the economic development of a state. The opening case in the chapter explores the Argentinian economy, which was previously referred to as the wealthiest country globally with a promising future. Today, Argentina is a middle-income nation that stumbles from crisis to crisis due to poor governance through economic policies that have led to price inflation and low economic growth. A Gross National Income is used per nation resident to measure economic development. According to Amartya Sen, economic development should be assessed by people's capabilities and opportunities but not by the GNI per capita.
It is often argued that a nation's political and economic systems contribute to its economic development. In this regard, the economic progress rate depends on how much the country upholds property rights in its markets. Conversely, the reflection of a country as an opportunity for the international market depends on weighing the risks, costs, and benefits of investing in that nation. The risks are contributed by a lack of a dynamic legal system, economic mismanagement, and political instability. On the other hand, the benefits are a function of future growth prospects, population, and purchasing power.
Chapter Four: Differences in Culture
The chapter focuses on how variances in cultures across and within nations impact an enterprise's strategies, international business transactions, and operations. In this regard, organizational success in the global set-up demands cross-cultural literacy. International companies must build a...