Contemporary Profile Trends of Political Systems - Essay Example

Political environments remain governed by various policies and regulations. The political policies regulate practices of campaigns, immoral acts, and other financial regulations. It is indispensable to fathom those political philosophies besides influencing economic, and social activities may contribute to stable practices internationally and locally.
Question 2
Contemporary profile trends of political systems involve democracy and totalitarianism. Totalitarianism constitutes a non-democratic government political spectrum with issues such as dictatorship, communism, fascism, and authority. The democratic government profile remains reactionary, liberal, radical, and conservative. Other profile trends in political systems revolve around engines of democracy and the third wave of democracy issues.
Question 3
Third-wave democracy issues and engines of democracy constitute the modern trends in contemporary political systems. Third-wave democracy relates to the main surge of democracy in history. The surge results from the vast international push towards democracy in the 21st century. Engines of democracy constitute developments that drive the success of modern political systems including improved communications technology and the failure of totalitarian regimes in delivering economic progress. Another engine of democracy for contemporary political trends includes economic dividends of increasing political freedom.
Question 4
Political risks entail perils faced by corporations, investors, and governments during economic relations. The risks also involve political decisions or events within a nation that may adversely affect the sustainability or profitability of investments.
Management of political risks consists of a three-step process that includes the identification of fundamental perils, measuring political influence on performance, and determination of the appropriate method of managing the risks. Identification involves risk managers scanning horizons for political risks and developing an inventory of specific risk types. The next step involves the assessment and quantification of the potential impacts of political risks. Quantification may involve the use of discounted cash flow methods to estimate the financial influence of certain political events. Lastly, managing political risks involves mapping potential risk management methods against those of priority risks. After establishing a course of action, the risk management team assigns responsibilities and forms a schedule for consultation, review, and reporting of risks. For instance, organizations that suffer from corruption may review their code of conduct and establish training sessions that would mitigate the embezzlement of funds (McKellar, 2010).
Question 5
The most significant drawback of passive political management is that the risks will remain recurrent as managers opt to partially hedge exposure to political perils. Passive management also assumes that it is difficult to model systematically political hazards, an assumption that may derail mitigation factors. On the contrary, proactive political risk managers believe that political events normally unfold within observable patterns that statistical methods have the capability of detecting. The managers also believe that negative and positive political events within any country are not random or independent.
Active political risk management involves rigorous quantitative analysis that assists in estimating the degree of political risks within a specific nation. On the contrary, passive political risk management is imperative in providing temporary solutions to potential hazards. Besides, passive managers typically buy insurances that aim at protecting their organizations from political risks.
Question 6
The legal environment consists of systems that create, interpret, and enforce laws and regulations in a particular jurisdiction. Common principles within the legal environment include respect and commitment to the formulated laws. In addition, the legal system practices common, civil, theocratic, and customary laws.
Question 7
Contemporary trends in legal include a preference for stability and influence from national legacies. Modern legal systems aim at establishing stable laws and regulations that society cannot violate. The systems strive in dealing with dynamic societal immoral acts following the revolution in technology. Moreover, dynamism in societal cultures and activities requires constant change in laws that prompts a consequent revolution in legal systems. Modern legal systems also face influence from national legacies including established laws and other prominent professionals.

Other legal issues relating to business operations include hiring and firing local workers. Within foreign communities, different legal issues surround processes of firing or hiring native workers including salaries and maintaining cultures. Strategic concerns facing international business managers include product safety and liability, marketplace behaviors, legal jurisdictions, and arbitrations. Product origin and local content also influence businesses operating internationally. Read More