1. Answer the following questions.
a. What are the basic ingredients (or characteristics) of a healthy democracy?
b. What is “social capital” and what role does it play in a democracy?
c. Identify at least two differences between the presidential and parliamentary systems of government?
d. Compare and contrast the “no confidence” vote of a parliamentary system of government with the impeachment process in the U.S. If you could choose, which system for removing people in authority would you pick, and why?
2. Distinguish between totalitarianism, socialism, and democracy. What are the implications of each for firms that are planning to internationalize?
3. According to a recent study (Links to an external site.) by the Brookings Institute (Sept. 27, 2018), the middle class now makes up over 50% of the population of many countries. The authors see this as good news for two reasons. First, they believe the middle class is the ultimate driver of economic growth in a country. Second, they claim that governments function better when there is a thriving middle class. Please explain both.
4. Watch the IMF video “Vietnam Rising” and also read the case “Economic Transformation in Vietnam”Preview the documentPreview the document which is found in chapter 2 of your textbook. (12th edition) Then answer the following:
a. In 1986, Vietnam adopted what is calls a “Socialist-Oriented Market Economy.” Briefly explain what that is and how it compares to a “regular” market economy.
b. What internal reforms were implemented in the country? Identify at least three reforms, and briefly explain how each one benefited the Vietnamese economy.
c. The level of corruption is high in Vietnam. Why is this the case? How does this affect the country’s economic performance?
d. Do you think the Vietnamese economy can prosper in the long term without a democratic government? Please explain your answer.
5. In chapter 2 read the case “Putin’s Russia.”Preview the documentPreview the document Then answer the following questions:
a. Identify three similarities between modern day Russia and Venezuela.
b. How has Putin been able to accumulate so much power?
c. Do you feel the UN was correct in imposing sanctions on Russia for its annexation of Crimea?
d. Read the Executive Summary of World Bank’s “Russia Economic Report” (Links to an external site.) which starts on page 8, then briefly summarize the recent trends in terms of GDP, inflation, unemployment, and inward foreign investment.
e. In your opinion, does this country represent an attractive opportunity for foreign investment? Please explain.
4. Vietnam Rising https://www.imf.org/external/mmedia/view.aspx?vid=5708695025001
5. File attached
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