Totalitarianism is a political structure whereby the state does not recognize the limitation of its authority from any sector and it monopolizes power hence regulating all aspects in its jurisdiction such as the public and the private perspectives. This kind of political system is characterized by some elements which are opposed to a democratic environment. Totalitarianism is associated with autocratic were nobody can resist the power and authority of the president since that is a criminal issue highly punishable by law (ppt.2).
Features of totalitarianism
Absolute military control is an aspect which is experienced in Totalitarian State whereby citizens are not allowed to exercise their rights freely since they are limited by the rules set by the government. The military has no limitations in their responsibilities and duties, and it can make crucial decisions for the country. In most cases the military is headed by the head of state that has absolute power over his or her subjects. The president is not questionable by law or by any policies since he is like the state's god (ppt.2).
A totalitarian state has a single party; hence, it does not receive any opposition during elections. The party decides on whom to rule hence hindering citizens their democratic right to choose their preferred candidates.
Secular activities are practiced in totalitarian powers since the president is the state's god. Religious beliefs and practices are of less importance since they are not followed since they can initiate punishment by the state. There are some punishments which lawbreakers are subjected which are not religious at all.
Fascism is experienced in totalitarian countries in which the government has absolute powers and control over business operations and labor in which opposition is not encouraged. Every sector in such countries' economies is subjected to strict rules
Constitutional guarantees are not enjoyed in States experiencing such kind of leadership since the president is the ruler and the key decision maker in the society. Citizens of such counties do not have stipulated constitutional rights to protect them from unnecessary harm.
Communism is the main feature of totalitarian states in which individual property ownership is not acceptable. The property is publicly owned as per the policies made and implemented by the president and the military.
Authoritarian rule is the leadership style which is used in such states since the government has to be respected and obeyed. Strictness in ensuring all citizens obeys the government policies and rules made by the president.
Totalitarianism is not a form of political risk. A political risk is a kind of risk faced by entrepreneurs, corporations and government from political instability. This type of risk is highly experienced in totalitarian states (ppt.2).
Centrally planned economy is a type of economy whereby the government makes all market decisions. The government makes decisions such as, what to be produced, how much to be generated, how to create and generally how the economy grows. There are several factors which contributed to the decline of this type of economy and they are; international competition, political self -interest, human incentives and socialist economic calculation difficulties (ppt.2).
Economic transition is the change of an economy from centrally planned to market economy. This kind of transition entails the transformation of the previous financial operations to inculcate the newly introduced policies (ppt.2).
Chinese planned economy has succeeded as compared to USSR since USSR tried to cop up with communism but it failed since it did not incorporate economic interdependence (ppt2). Most economies in the recent times are inculcating depending on each other to ensure economic growth. There are a number of issues which defines China's success in communism and reflects the causes of USSR failure to advance command economy.
China allowed open economy where foreign countries can sale their commodities but under certain restrictions to be adhered followed (ppt 2).The above aspect is also based on different social classes to persist in its market an issue which USSR did not consider necessary instead it introduced classless society in which it did not consider the availability of various ethnic groups in the country. China valued the potentiality of all its citizens from different ethnic communities and this aspect aided the government to get support from the community in implementing its policies had per communism rules and policies.
China has encouraged globalization in its economy compared to USSR which did not (ppt2). China globalization aspect is supported by the fact that it is experiencing difference economic market because majority rule is considered in establishing the government. USSR did not give people their chance to contribute to the establishment of the administration, and this aspect defines the difference between it and China. Democracy is reflected in the Chinese operations which have enhanced economic growth since unity and solidarity are experienced from all ethnic groups in the entire country.
China's communism have the market economy hence allowing for international competition as opposed to USSR were market economies were allocated to the authoritarian regimes (ppt2). The market economy in China gave some modernization of Socialist economy which they don't like preferring to as semi or capitalist since they belief communism is all they should stand for in building and developing their economy. USSR valued only the authoritarian regimes since they thought the masses were important than the rest.
Chinese government created the national identity to enhance globalization and recognition in foreign markets (ppt 2). By it, citizens could identify with even though it has many ethnic groups. The above issue is opposed to USSR perspective where by its communism government did not value the national identity perspective. National identity enhanced unity and cooperation in China whereby the Chinese were focused to work towards developing their country's economy as per the policies and principles advocated for by the communism theory.
Government intervenes in trade because of several reasons which are of common interest to all, apart from political motive. It intervenes to protect consumers from unsafe products. Some commodities counterfeit and others are harmful to human beings and the government has been mandated to protect its subjects from such things (Lecture notes). For example; many countries have prohibited marijuana consumption, so it is the responsibility of governments in such States to ensure citizens are not lied to for them to buy it. In such a situation, the government makes and implements some laws which are meant to punish the individual who is caught engage in such an illegal business Protecting domestic industries is an aspect which makes government protects trade since some people introduce black markets which compete the local firms (ppt.1) . There some industries which are considered essential for national security such as aerospace are mostly protected from external influence and pressure which can affect its production since it generates a lot of income to the government.
Government intervenes to protect jobs for its citizens which are its political responsibility. In most cases, unions and some industries, threaten workers and in that situation, the government has to intervene to ensure workers are not treated unfairly.
The government intervenes in trade to further the objectives of foreign trade policy. The government can offer preferences to a particular country in which it can be its main trade party. The governments can also strength foreign policies and terms to restrict some States which are rogued. International trade policies are meant to create relationship between states for them to enable easy exports and imports in their markets (Wild, J. J., & Wild, K. L., 2 014).
In cases of the first mover advantages, the government, aids firms from its country to gain the offer under strategic trade policy. The objective or the reason for the government intervention is to ensure the firm befits and then it increases revenue through foreign exchange. The government is mandated to assist firms to get advantageous foreign offers since it boosts economic growth and international relations too. By facilitating the above aspect, the government enables firms overcome international trade barriers.
Infant industries are always in need of protection since they are not yet competitive in the market. Such firms are protected until they mature in which they can compete with others in the market. A firm is termed as mature when it can generate funds without the support of the government. This aspect is crucial, for the government to intervene because if left alone the firm will just collapse since it cannot fund itself (Wild, J. J., & Wild, K. L., 2 014).
. Tariffs are taxes imposed on goods which are imported and results to an increased domestic product prices. In this situation, there are two beneficial which are the government and the local producers. The government collects taxes which boost revenue donate. The domestic producers benefit from high prices since the hike their product costs. Even though tariffs are restrictions meant to protect local markets from manipulation it is beneficial.
Quotas are numerically set limits imposed on imported goods. They are harmful to consumers similarly to tariffs since they initiate increased in prices. Quotas benefits both domestic and foreign producers since they maximize their profits.
Regional economic integration is an economic arrangement or agreement made between regions or states identified by removal of trade barriers and coordination of both monetary and fiscal rules. When states agree to venture in regional economic integration, they have to compare their monetary and fiscal policies to ensure smooth trade. There some trade barriers such as tariffs and quotas which have to be eliminated to enable the free flow of goods and services between the two states. Free trade is an example of regional economic integration which is portrayed by the European Union. The European countries engage in free trade whereby trade barriers have been removed and member states are able to carry out trade freely. There are other samples of regional integration such as Southern common market which is made of countries such as Argentina, Brazil and Uruguay. Regional economic integration initiates simultaneous growth between the involved States and this aspect also enhances good relations between the members (Wild, J. J., & Wild, K. L., 2 014).
Nations find regional economic integration necessary since it strengthens trade integration in their region. When States trade for some time, they build their relationship, and this aspect initiated growth and development in the area since the customer base increases since the borders are open for entrepreneurs.
Regional economic integration enhances, private sector development since the target market enlarges and elimination of trade barriers such as tariffs and quotas enable free trade. The industry enjoys increased sales since its customer based expands hence accelerates its expansion. Many private companies emerge because regional economic integration is a promising venture since it reduces market competition for some unique commodities.
Regional economic integration also leads to improvement of cross-border infrastructure which enables entrepreneurs to transport their products to various markets. Roads, railway lines, and airlines have to be established to facilitate transportation of people and goods cross-borders. Some agricultural products are perishable, and they require faster means of transport, and this initiates the establishment of new airports. New planes will also be purchased to facilitate faster transport.
Some nations do not consider regional economic integration since the commodities produced in the area are familiar. It is hard to establish regional economic integration in an area where countries are providing similar goods and services. Heterogeneous products are crucial in trade since they will attract buyers from various regions (Wild, J. J., & Wild, K. L., 2 014). Some nations are afraid to engage in regional economic integration because they fear being manipulated by countries with stable and developed economies. Manipulation is an aspect which was experienced during colonial period and countries fear historical repetition
Wild, J. J., & Wild, K. L. (2014). International business: The challenges of globalization.