Perbedaan Sistem Politik, Ekonomi, Hukum, Budaya dalam Lingkungan Bisnis Internasional ~ FSAB4307

Main ideas / lessons (international business systems)

• International business is more complex than domestic business because it involves multiple countries, each with different:
  • Political systems
  • Economic systems
  • Legal systems
  • Cultural systems
• These differences affect international business through costs, risks, opportunities, and benefits.
• Companies entering a new country must study the target country’s system(s) to evaluate:
  • Risk level (including stability and regulatory changes)
  • Costs (compliance, contracting, labor, market entry)
  • Profit potential relative to those risks/costs
• A successful strategy typically requires being adaptive, not assuming strategies work the same everywhere.

---

Structured concepts and detailed instruction-like lists

A) Political system (framework + dimensions)

What a political system is (for business context)

• How a country’s government system works, including:
  • Power arrangement
  • Resource distribution
  • Links to economics and law

How to understand a country’s political system (two dimensions)

1. Individualism vs. Collectivism

   • Individualism
     • Emphasizes individual rights, freedom of opinion, and individual freedom above group interests
     • The state acts mainly as a facilitator, not the main regulator
     • Example: United States
     • Business implication: tends to support faster innovation and growth (as described)
   • Collectivism
     • Prioritizes group goals first, then individual goals
     • Government tends to be a main regulator in economy and society
     • Individual rights may be limited when conflicting with society’s interests
     • Associated with socialism (tied to Karl Marx in the explanation)
     • Consequence (as described): may limit innovation due to reduced individual freedom
     • Practical implication mentioned: governance quality matters; innovation may lag

2. Democracy vs. Totalitarianism

   • Totalitarianism
     • One person or party controls government
     • Opposition parties are forbidden
     • Centralized government; limited freedom
     • Business decisions and government regulate “everything” (not via market mechanisms)
     • Four forms listed:
       1. Totalitarian communist (example: North Korea)
       2. Totalitarian theocracy (examples: Iraq, Iran, Pakistan)
       3. Tribal totalitarian (noted in parts of Africa where historical borders do not match tribal regions; power monopolized by a small ethnic group)
       4. Totalitarian rightwing (political control remains, while the economic field may be partially “free”)
   • Democracy
     • Government comes from the people via direct elections or through parliament
     • Benefits cited:
       • More space for participation
       • Greater transparency
       • More consistent law → provides business certainty and safety

Business impacts of political systems (what to watch)

• Stability and regulation determine investor safety and legal certainty
• Key areas of impact:
  1. Market entry rules
     • Often easier entry in democratic capitalist contexts (though competition may be high)
  2. Stability
     • Authoritarian systems may offer long-term certainty, but risk sudden reversal if regimes change
  3. Ownership rights
     • Individualistic countries: stronger protection for personal/property/patent-like rights
     • Collectivist countries: state may take assets for “common interest”
  4. Negotiation and cultural interaction speed
     • Individualistic: quicker negotiation
     • Collectivist: slower negotiation due to group consensus
     • Example: Google’s difficulties entering China due to strict regulation of information flow

---

B) Economic system (three types + business strategy implications)

Three broad economic systems

1. Market economic system

   • Production guided by supply and demand and price signals
   • Claimed benefit: efficient resource allocation for consumers

2. Command economic system

   • Government determines:
     • Type, quantity, and price of goods/services
   • State controls business activities
   • Goal: mobilize resources for shared prosperity
   • Claimed issue: often inefficient and limits innovation → stagnation

3. Mixed economic system

   • Some sectors controlled by the state; others left to private sector/market mechanisms
   • Mentioned as common in Western Europe and also worldwide in practice
   • Examples discussed:
     • China: politically associated with “communist,” but described as having strong market mechanisms
     • United States: described as capitalist but also includes social/welfare programs
     • Western European “welfare states”: capitalism with socialist characteristics

How economic systems affect the “business game” (what changes in practice)

• Rules differ by system, including:
  • Market entry conditions
  • Tax rules
  • Wages / worker payment systems

Examples used to illustrate consequences

• United States (capitalist/open market)
  • Foreign companies can enter relatively freely, but competition is strong
  • Innovation matters: slower firms can be replaced quickly
• Sweden/Scandinavian democratic-socialist countries
  • High taxes and strict regulations, but stable market
  • Loyal consumers, educated workforce
  • Business culture supports global growth
• Indonesia (mixed system)
  • Space for private sector, but some strategic sectors controlled by government (example: railways and electricity)
  • Private firms (example: Gojek) can grow quickly but must follow regulations

Strategy lesson

• A strategy that works in one country may not work elsewhere because economic systems differ:
  • Higher individualism/democracy → companies may need to be more aggressive and innovative
  • Command/socialist/“guided economy” → companies must adjust strategy to regulations; profits may be lower
  • Mixed system → success depends on balancing and building relationships with government and local partners

---

C) Legal system (what it covers + main categories + impacts)

What a legal system is (business meaning)

• Rules/laws regulating:
  • How behavior is governed
  • How laws are made
  • How complaints/responses are handled
• Affects investment attractiveness through predictability and enforcement

Three summarized legal issues international businesses should pay attention to

1. Private property rights

   • Rights for individuals/groups/organizations to own and use resources to profit
   • Two violation types:
     • Private action (non-government): theft, robbery, extortion, piracy
     • Public action (government/public officials): excessive taxes, high licensing fees, forced takeover

2. Intellectual property protection

   • Protects knowledge-derived wealth (examples mentioned: software programs, drug formulations)
   • Instruments: patents, copyrights, trademarks
   • Protection varies by country

3. Product safety and product liability

   • Product safety: required standards so products don’t harm consumers
   • Product liability: responsibility if products cause harm (e.g., poisoning/death)
   • Civil vs criminal law application:
     • Civil law → fines
     • Criminal law → imprisonment
   • Example note: developed countries (US/UK/Canada) may have more lawsuits than developing countries, affecting business costs/revenue

Contract law + legal traditions

• Contract: document detailing transaction terms and each party’s rights/obligations
• Contract law: rules required to implement contracts
• Countries differ due to legal traditions:
  • Common law (examples: England, United States)
    • Heavily relies on court decisions/precedents
    • Contracts may need to be more detailed to anticipate loopholes
  • Civil law (example context: Indonesia described)
    • Based on written codes/statutes; regulations are clearer
    • Contracts may follow standard written rules
  • Theocratic/religious law (example: Iran, Pakistan)
    • Includes religious rules such as marriage, divorce, inheritance
    • In business: Islamic banking/profit-sharing rather than interest (example given)

Broader business impacts of legal systems

• Influence company policies such as:
  • recruitment and employment conditions
  • compensation
  • layoffs procedures
• Influence marketing and technology usage:
  • advertising rules and distribution channels
  • consumer protection
  • technology/IP rules (patents/copyright)

Specific example impacts mentioned

• Labor
  • EU example (Germany): strict rules on max working hours, annual leave, right to organize
  • Indonesia: minimum wage (UMR) requirements
• Marketing/advertising
  • EU: strict rules for food/drink advertising to children
  • Indonesia: special hours/rules for certain advertisements
  • Pharmaceuticals/cosmetics distribution: need BPOM approval (and “BPOM e-certification” for foreign companies)
• Technology/IP
  • US/Western Europe: strong patent/IP protection → lawsuits (example: Apple vs Samsung smartphone design infringement leading to damages)
  • China: weaker copyright protection → more counterfeit products

Conclusion for law

• Legal system differences affect every operational area, and failure to adapt can lead to:
  • fines
  • permit revocation
  • reputational damage (possibly extending across other countries too)

---

D) Cultural system (definition + components + business impacts)

What culture means (definitions referenced)

• Culture described using anthropologist Edward Tylor: unity of knowledge, beliefs, art, morals, customs, etc., learned as part of society
• Another definition (attributed to HSTE): “collective program of thinking” distinguishing members of groups
• Overall takeaway: culture = shared system of values and norms that becomes the foundation for life

Key cultural components

• Values: attitudes/behavior toward concepts
• Norms: social rules governing actions toward others
  • Customs: routine everyday conventions/norms
  • Mores: more formal, central norms; may be tied to morality/law
• Example contrasts:
  • Time punctuality expectations (appointment at “00:00” vs before “07:00”)
  • Alcohol norms: acceptable in some societies, prohibited/illegal in others
• Factors influencing culture:
  • social structure
  • language
  • education level
  • religion

How culture impacts international business

1. Recruitment & leadership styles
   • Social structure affects hierarchy and mobility
   • Example: India’s caste system (even if legally prohibited) affects labor market relations
   • Example contrast: more mobility in the US → more meritocracy
2. Religion
   • Shapes work ethics, consumption styles, and work calendars
   • Example: Indonesia’s Ramadan affects:
     • working hour adjustments
     • product requirements (e.g., halal)
3. Product fit with cultural values
   • Example: selling beef products in India where cows are sacred
4. Culture as opportunity vs conflict
   • Opportunity: understanding culture builds trust and relationships (e.g., how business cards are handled/handshake style)
   • Conflict: misunderstandings in communication or products that violate cultural values (e.g., alcohol in Muslim-majority contexts)
5. Negotiation and relationship concepts
   • Japan: etiquette (bowing, two-hand card handling)
   • China: guanxi (personal relationship network) can accelerate business relationships
   • Misunderstanding culture can slow negotiations or create barriers

Practical etiquette example discussed

• The discussion references sensitivity about physical gestures during meetings (example involving an ASEAN leader and a first lady in a European context), showing:
  • cultural norms can cause misunderstandings or offense if not anticipated
  • but correct cultural understanding can prevent issues

---

Overall conclusion of the episode

Across political, economic, legal, and cultural systems, each shapes:

• business operations
• business policies
• the level of risk
• the calculation of benefits vs costs

Companies should:

• analyze how big the risk is when entering a country
• ensure benefits outweigh risks and costs
• be adaptive and creative rather than afraid of differences

Mastering these differences can enable business leaders to operate domestically and succeed globally.

---

Speakers / sources featured

Speakers (as identified in the subtitles)

• Kardini (host / presenter)
• Ms. Adisti Sabrina Nurkamarani, B.Hons, M.Sc (guest lecturer)
• Ardini (speaker at the closing; likely co-host/host segment)
• Angga Yunanda (UT promotional testimonial)

Referenced sources / names

• Edward Tylor (definition of culture)
• HSTE (credited for a culture definition)
• Karl Marx (socialism explanation)
• Common law / civil law (legal traditions)
• Company/examples referenced: United States, China, Google, North Korea, Iraq, Iran, Pakistan, Sweden, Indonesia, Gojek, Apple, Samsung, BPOM (Indonesian Food and Drug Authority)
• Cultural concept: guanxi
• Religious/ethnic/cultural examples: Ramadan, Eid al-Fitr, halal, India’s caste system