Internatoinal business mangement Essay Example | Topics and Well Written Essays - 750 words

Internatoinal business mangement - Essay Example It helps to stimulate the economic growth. On the other hand, under the stated directed economies income and resources are funneled to the governmental central agency. It is the responsibility of the governmental central agency to allocate appropriate financial resources back into the action that the central agency deems important. State directed economies are high risk associated. If the organizations find it difficult to allocate appropriate financial resources then it can stifle the economic growth. Democratic political system can be considered as an important condition for the sustainable economic growth. There are several advantages of the democratic political system as it helps an economy to betterment the income distribution. In addition to this, democratic political system helps to adopt and develop free market economy system. Free market economy system can increase the buying and selling activities in an organization. In addition to this, it reduces the level of corruption in a country. Adoption and development of free market economy can help a country in several ways. First of all, it motivates several foreign players to invest in the country. It helps a country to increase the buying and selling activities. In addition to this, it helps to increase the employment generation aspect as the number of businesses or organizations increases due to these political systems. The market growth rate increases of an economy under this democratic political system as it helps to incr ease the market demand for a particular products and services. Intense market competition as well as demand for differentiated products and services can help a country to overcome several economic challenges, such as inflation, recession and depressions as the democratic political system motivates the business enterprises to produce goods and services according to the existing market demand. Therefore, limited threat of oversupply can help a country to gain effective