Entendiendo Política, Leyes y Economía Understanding Politics, Laws, and Economics

Después de esta clase, deberán ser capaces de: Objetivos Después de esta clase, deberán ser capaces de: Entender el concepto de “instituciones” y su factor de importancia para reducir la incertidumbre Identificar las diferencias básicas entre democracia y totalitarismo. Entender las diferencias entre derecho civil, ley común y ley teocrática Entender la importancia de los derechos de propiedad y derechos de propiedad intelectual Diferencias entre economía de mercado, among market economy, command economy, y economía mixta Participate in three leading debates on politics, laws, and economics Draw managerial implications

INSTITUCIONES FORMALES E INFORMALES INSTITUCIONES – se les conoce como ”las reglas del juego” y pueden ser formales e informales institution-based view - leading perspective on global business in which firms constantly monitor, decode, and adapt to the changing rules of the game to survive and prosper

INSTITUCIONES FORMALES E INFORMALES Marco Institucional – instituciones formales e informales que rigen el comportamiento individual y organizacional. Instituciones Formales – leyes, regulaciones y reglas. regulación pilar o eje - el poder coercitivo de los gobiernos (a fuerza)

INSTITUCIONES FORMALES E INFORMALES Instituciones Informales – son representadas por normas, culturas y etica. pilar normativo - como los valores, creencias y acciones de otros actores relevantes - conocidos colectivamente como las normas - influyen en el comportamiento de los individuos y las empresas. pilar cognitivo - interiorizado, que se da por sentado los valores y creencias que guían el comportamiento individual y la empresa

QUE HACEN LAS INSTITUCIONES? Su rol es reducir la incertidumbre influyendo en la toma de decisiones de personas y empresas señalando qué conducta es legítima y aceptable y cual no lo es. costos de transacción - los costos asociados con las transacciones económicas, los costos de hacer negocios oportunismo - que buscan su propio interés con engaño transiciones institucionales – modificaciones que se aplican a las reglas formales e informales del juego que afectan a las organizaciones participantes

QUE HACEN LAS INSTITUCIONES?

SISTEMAS POLITICOS Riesgos politicos – relacionados con cambios politicos que pueden impactar negativamente empresas locales y extranjeras. Venezuela China Bolivia Irak Estados Unidos Mexico Etc

SISTEMAS POLITICOS Democracy – DEMOS (pueblo) CRATOS (poder/gob) Political system in which citizens elect representatives to govern the country on their behalf Los ciudadanos eligen a sus gobernantes. An individual’s right to freedom of expression and organization is a fundamental aspect of democracy that is relevant to the effective conduct of global business Derechos individuales, libertad de expresion y organizacion son aspectos fundamentales de la democracia y ejes centrales para los negocios globales.

SISTEMAS POLITICOS Totalitarianism (or dictatorship) - political system in which one person or party exercises absolute political control over the population Una persona o partido controla a la población Communist totalitarianism centers on a communist party (China, Cuba, Vietnam) Right-wing totalitarianism characterized by intense hatred of communism with one party, typically backed by the military, restricts political freedom, arguing that such freedom would lead to communism – fuerza militar (Taiwan, Sudafrica, Korea)

SISTEMAS POLITICOS totalitarianism (or dictatorship) - political system in which one person or party exercises absolute political control over the population Theocratic totalitarianism - monopolization of political power in the hands of one religious party or group (Iran, Araia Saudita) Tribal totalitarianism - one tribe or ethnic group (which may or may not be the majority of the population) monopolizes political power and oppresses other tribes or ethnic groups (Seris en la Isla del Tiburon)

SISTEMAS LEGALES legal system/sistema legal- rules of the game on how a country’s laws are enacted and enforced – como se manejan las leyes en algun país. civil law / derecho civil - derived from Roman law and strengthened by Napoleon’s France, it is the oldest, most influential, and most widely distributed law around the world common law / ley común - shaped by precedents and traditions, English in origin, based on previous judicial decisions theocratic law /ley teocrática- based on religious teachings

PROPERTY RIGHTS property rights / derecho de propiedad - legal rights to use an economic property (resource) and to derive income and benefits from it / derecho legal para usar una propiedad economica y obtener recursos a cambio patents / patentes- legal rights awarded by government authorities to inventors of new products or processes, who are given exclusive (monopoly) rights to derive income from inventions through activities such as manufacturing, licensing, or selling / otorgado por autoridades a inventores de nuevos productos o procesos para su uso exclusivo y obtener beneficios.

PROPERTY RIGHTS intellectual property / propiedad intelectual - intangible property that results from intellectual activity (such as books, videos, and websites) / propiedad intangible que resulta de actividades intelectuales. intellectual property rights / derechos sobre propiedad intelectual - rights associated with the ownership of intellectual property. copyrights / derecho de autor- exclusive legal rights of authors and publishers to publish and disseminate their work trademarks / marca registrada - exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others piracy / pirateria- unauthorized use of intellectual property rights

SISTEMAS ECONOMICOS economic system / sistema economico- rules of the game on how a country is governed economically market economy /economia de mercados- characterized by the “invisible hand” of market forces / oferta- demanda. Mercados mandan (capitalismo) command economy / economia dirigida - all factors of production are government- or state-owned and controlled, and all supply, demand, and pricing are planned by the government (socialismo) mixed economy - characterized by elements of both a market economy and a command economy

Drivers of Economic Development: Culture, Geography, or Institutions? Some African countries such as Burundi so underdeveloped (poor)? More generally, what drives economic development in different countries?

Speed and Effectiveness of Institutional Transitions: China versus Russia If democracies favor economic growth, how do you explain the fact that China, a totalitarian regime, boasts the fastest growing economy in the last 30 years?

Measures of Political Risk: Perception vs. Objective Measures How to actually measure political risk has led to a significant debate. One side suggests that political risk is based on perception and that the best measures can be found through surveys of international executives on their perceptions. However, critics argue that perception can be deceiving and misleading. They point out that perception-based rankings in the 1990s failed to provide warning of political changes in Indonesia, Malaysia, South Korea, and Thailand. Critics advocate objective measures of political risk that take into account a country’s underlying political and regulatory structures.