Principles of International Business

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Democracy

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Principles of International Business

Definition

Democracy is a system of government in which power is vested in the people, who exercise that power directly or through elected representatives. This form of governance emphasizes individual freedoms, political equality, and active participation of citizens in decision-making processes. In the context of political systems and economic development, democracy is often associated with higher levels of economic growth, social stability, and greater protection of human rights.

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5 Must Know Facts For Your Next Test

  1. Countries with stable democracies tend to have higher GDP per capita, showing a correlation between democratic governance and economic prosperity.
  2. Democratic systems can vary widely, ranging from direct democracy where citizens vote on policies to representative democracy where elected officials make decisions.
  3. Elections are a critical component of democracies, providing legitimacy and a mechanism for accountability between the government and the citizens.
  4. Political pluralism is encouraged in democracies, allowing multiple political parties and ideologies to compete for power and influence.
  5. The presence of a free press is vital in democracies, as it helps inform the public and fosters transparency and accountability in governance.

Review Questions

  • How does democracy impact economic development in various countries?
    • Democracy often positively influences economic development by promoting stability, attracting foreign investment, and ensuring accountability through transparent governance. Democratic nations tend to create better conditions for economic growth by protecting property rights and fostering innovation. Furthermore, when citizens have a voice in their government, they are more likely to advocate for policies that support sustainable economic practices and social welfare.
  • Evaluate the role of civil liberties in supporting democratic governance.
    • Civil liberties are essential for democracy because they ensure individuals have the freedom to express themselves, assemble peacefully, and participate in political processes without fear of repression. These rights foster an environment where diverse opinions can be voiced and debated, leading to more informed decision-making. In societies where civil liberties are upheld, citizens are empowered to hold their governments accountable, ultimately strengthening the democratic system.
  • Analyze the challenges faced by democracies in maintaining effective governance and citizen engagement.
    • Democracies often face significant challenges such as voter apathy, misinformation campaigns, and political polarization that can undermine effective governance. In many cases, citizens may feel disillusioned or disconnected from the political process, leading to lower voter turnout and engagement. Additionally, the rise of populism can strain democratic institutions by prioritizing short-term interests over long-term policy solutions. To address these challenges, democracies must enhance civic education, promote transparency, and engage citizens actively in decision-making processes.

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