INTERNATIONAL BUSINESS

CHAPTER 1 “BEYOND BORDERS: EMBRACING THE GLOBALIZATION ERA” INTRODUCTION Chernilo, (2021), In the current era of globalization, the world is experiencing profound changes in various aspects of life. The process of globalization has opened the door to cultural, economic and technological exchange between countries around the world, (Fu et al., 2022). This phenomenon has created new opportunities as well as complex challenges, (Hall, 2020). On the one hand, globalization enables the exchange of ideas and innovation across borders, expands access to knowledge, and brings rapid economic growth, (Ricci, 2022). However, on the other hand, this phenomenon also gives rise to social inequality, presents global environmental problems, and results in economic vulnerability that can affect countries, especially developing ones. In this context, it is necessary to understand how society, government and the private sector respond to challenges and opportunities brought about by globalization, (Nobari, 2021). This research aims to investigate the impact of globalization in various sectors of life, analyze effective strategies for taking advantage of globalization opportunities, and overcome emerging challenges. Through a deep understanding of the dynamics of globalization, it is hoped that sustainable solutions can be produced to guide countries in facing an increasingly connected and complex future, (Madden, 2022). In addition, globalization also opens the door to deep cross-cultural cooperation, (Ahmad & Wu, 2022a). The exchange of art, music and traditions between nations creates invaluable cultural wealth, enriching the experience of people around the world, (Ghosh et al., 2022). This intercultural interaction builds tolerance, reduces prejudice, and fosters understanding between different groups of people, (Adedoyin et al., 2021). However, this global change also requires adjustments in all fields, (Ahmed et al., 2021). The rapid development of communications technology, for example, requires new skills and sensitivity to global business dynamics. Likewise in the field of education, where the curriculum must be redesigned to prepare the younger generation to face greater challenges and opportunities at the global level, (Chien et al., 2021a). By understanding the complexity of globalization and analyzing its various aspects carefully, it is hoped that we can take wise steps to exploit the opportunities of globalization while maintaining human values and environmental sustainability, (Ramzan et al., 2023a). Through in-depth research and dialogue, the international community can create solutions that promote social inclusion, sustainable economic growth, and world peace in this era of globalization, (Ahmad & Wu, 2022b). In facing the complexity of globalization, the importance of international cooperation and multilateral partnerships is increasing, (Chien et al., 2021b). Collaboration between countries in formulating fair and sustainable trade regulations, as well

as protecting workers' rights globally, is very important, (Chien et al., 2021b). Additionally, investment in education that prioritizes future skills, research and technology development, and infrastructure that supports global connectivity, are key steps to ensure continued participation in an inclusive global economy, (Rehman et al., 2023). LITERATURE REVIEW AND DISCUSSION Understanding the concept of "globalization" is important in efforts to understand the complexity of the world today, (Farooq et al., 2022). Globalization refers to the process of increasing interconnectedness and interdependence between countries, economies, cultures and societies at the global level, (Ma & Wang, 2021). It is characterized by the flow of goods, services, information, ideas, and individuals across national boundaries, facilitated by advances in technology, communications, and transportation, (Jahanger et al., 2023a). This phenomenon transcends geographic, political, and cultural barriers, changing the way the world operates and interacts.Globalization is driven by several main factors, (Cuervo‐Cazurra et al., 2020). First, technological developments play a central role in promoting globalization. Rapid advances in the internet, telecommunications, and transportation have significantly reduced barriers to communication and cross-border trade, (Dabwor et al., 2020). Second, economic liberalization, which involves reducing trade barriers, has facilitated the movement of goods, services and capital at the international level, (BalsalobreLorente et al., 2023). Third, the global economy has undergone a transformation through the emergence of multinational companies operating in various countries and often having a major impact on international trade and production, (Bashir et al., 2022). Changes in the nature of the global economy are one of the main characteristics of globalization, (Ramzan et al., 2023b). This involves a shift from a state-centric economy to an interconnected global economic system, (Gouthro, 2022). These changes are characterized by complex global supply chains, an emphasis on service and information-based industries, and an increased reliance on knowledge and technology as key drivers of economic growth, (Ahmad & Wu, 2022c).The debate regarding the impact of globalization is a multidimensional one, with various arguments put forward by its supporters and critics, (Chien et al., 2021c). Proponents highlight positive outcomes, including increased economic growth, broader access to global markets, and cultural exchange. However, critics argue that globalization can exacerbate income inequality, cause unemployment, and contribute to environmental degradation, (Jahanger et al., 2023b). Ongoing debate revolves around the extent to which the benefits of globalization outweigh its negative impacts, (Gozgor et al., 2022). Globalization also creates opportunities and challenges for management practices, (Tsaramirsis et al., 2022). On the one hand, this opens up access to broader markets, diverse human capital, and

potential cost savings through global resource allocation, (Boratyńska, 2021). On the other hand, management must also face challenges such as managing cultural diversity, dealing with complex global supply chains, and complying with various international regulations, (Sánchez‐Ancochea, 2021). In addition, management must also address ethical and social responsibility aspects arising from operating in an increasingly globalized world, including sustainability and ethical business conduct, (Jacobs et al., 2023). Overall, understanding globalization is the main basis for understanding the contemporary world, (Alessandria et al., 2021). Globalization is driven by technological advances, economic liberalization, and the emergence of multinational companies, (Fehrer et al., 2022). Changes in the nature of the global economy involve interconnected global supply chains and an emphasis on knowledge and technology, (Aghbashlo et al., 2022). The debate regarding the impact of globalization is multidimensional, and management practices must be prepared to seize opportunities and overcome challenges in an increasingly globalized environment. While globalization opens the door to various opportunities, it needs to be recognized that not all groups or countries benefit equally from this phenomenon, (Ilzetzki & Jin, 2021a). Inequality in the distribution of global economic benefits remains a major issue, with most of the benefits of globalization often flowing to developed countries, while developing countries still struggle to reduce economic disparities, (Ilzetzki & Jin, 2021b). Additionally, there are concerns regarding the loss of cultural diversity and homogenization in global culture driven by media and global consumption trends, (Beugelsdijk et al., 2022). We must consider ways to maintain cultural diversity and encourage positive cultural exchange in this era of globalization. One of the most striking changes in the era of globalization is the transformation in the way companies operate, (Georgieva & WeeksBrown, 2023). Global companies must now face the challenges of managing complex global supply chains and addressing issues such as the environment, social responsibility and business ethics, (Babić & Dixon, 2022). However, they also have the opportunity to leverage global resources, diversify markets and access global talent, (Keller & Utar, 2023). Management must incorporate strategies focused on sustainability and social justice, while taking advantage of the business opportunities presented by globalization, (Irwin et al., 2022). As we enter the era of globalization, it is important to realize that the challenges and opportunities we face are multidimensional, (Collet & Rémy, 2023). In order to achieve maximum benefits from globalization, we need to develop solutions that address inequalities, promote cultural diversity, and ensure that management understands the complexity of global supply chains and adheres to ethical and social responsibility principles, (Alquist et al., 2020). With a balanced approach, we can embrace this era of globalization more effectively and sustainably, (Beckert et al., 2021). Understand What Is meant by The Term Globalization

Globalization is the process of increasing interconnectedness and interdependence between countries, cultures, and economies around the world, (AsSaber & Härtel, 2023). This involves the global exchange of goods, services, information, ideas, technology and cultural aspects, (Kuada, 2022). The development of communications, transportation and technology drives this phenomenon, eliminating restrictions between countries and allowing interaction and integration between them to a greater extent than before, (Pananond et al., 2020). In the context of globalization, boundaries between countries become less relevant because business, culture and society are increasingly interconnected, (Richardson & Fernqvist, 2022). Globalization has a widespread impact on various aspects of life, including economics, politics, culture, the environment and social dynamics, (Meyer & Li, 2022). Although it brings opportunities such as economic growth and cultural exchange, globalization also raises challenges such as cultural homogenization, economic inequality, and environmental degradation, (Baker et al., 2023). Overall, globalization is a complex process that shapes the modern world in various ways. In this era of globalization, information and communication technology plays a very vital role, (García et al., 2023). The internet and social media facilitate interaction and exchange of information regardless of geographic boundaries, (Zwart & WertheimHeck, 2021). This not only accelerates the exchange of knowledge and ideas, but also changes the way businesses operate and interactions between cultures, (Schirpke et al., 2023). In addition, globalization also increases access to education and health services, triggers changes in consumption patterns, and stimulates innovation in various sectors, (Young-Jin et al., 2023). Nevertheless, these rapid changes raise questions about how to manage social, economic and political adaptation in the face of the evergrowing dynamics of globalization, (Sun & Liang, 2021). In a social context, globalization has stimulated the exchange of values, beliefs, and ideologies between different societies, (Russo et al., 2020). This triggers a process of cultural acculturation, where people have the opportunity to explore a deeper understanding of different points of view and traditions, (K. Wang et al., 2023). However, globalization also brings debate and tension in a number of societies that try to maintain their cultural identity amidst the rapid flow of globalization, (Askarpour et al., 2020). A deep understanding of cultural diversity and social values around the world is an important key to embracing pluralism and respecting human rights at all levels of society, (Yun-Casalilla, 2022). The importance of international cooperation in overcoming global problems is increasingly felt in this era of globalization, (Hosseinzadeh et al., 2022). Issues such as tackling climate change, poverty alleviation, and global health require a collaborative approach involving countries, international organizations, and the private sector, (Dadashpoor & Malekzadeh, 2020). Collective engagement in the search for solutions to these global challenges creates the foundation for world peace and longterm stability, (Mady et al., 2022).

Recognize the main Drivers of Globalization Globalization is driven by a number of complex and interrelated key factors. First, technological advances, especially in the fields of communication, transportation and information technology, have reduced distance and time barriers, (Stafford, 2020). The internet, mobile devices, and rapid transportation have facilitated instant communication and the movement of goods and people across national borders, (Miao et al., 2022). Second, trade liberalization through trade policies and agreements between countries has opened markets and reduced tariffs and trade barriers, (Di Paola et al., 2023). Organizations such as the World Trade Organization (WTO) play an important role in promoting global trade and economic integration, (Sánchez‐Ancochea, 2021). Third, cross-border capital and investment flows play a key role in globalization. Multinational companies invest their capital in foreign markets, resulting in the integration of financial markets and increased economic interdependence, (Boratyńska, 2021). Fourth, large multinational companies operate globally by establishing production facilities, supply chains and markets in various countries, (Tsaramirsis et al., 2022). Their role in expanding cross-border operations is critical in driving globalization, (Gozgor et al., 2022). Fifth, the global exchange of culture and media, such as films, music, and literature, has led to cultural homogenization and greater understanding among various societies, (Jahanger et al., 2023b). Global media networks and social platforms also contribute to the spread of information and ideas around the world. Sixth, political factors also play a key role, (Chien et al., 2021c). Political policies, both at the national and international levels, can facilitate or hinder globalization, (Ahmad & Wu, 2022c). Political stability and cooperation between countries supports global trade and economic integration, (Ramzan et al., 2023b). Seventh, increasing human migration also contributes to cultural exchange and global workforce diversity, (Bashir et al., 2022). Finally, international institutions such as the International Monetary Fund (IMF), the World Bank, and the United Nations play an important role in shaping global economic policy and facilitating cooperation between countries, (Balsalobre-Lorente et al., 2023). All these factors interact and reinforce each other, forming a complex network that describes the contemporary global world, (Dabwor et al., 2020). Describe The Changing Nature of The Global Economy The changing nature of the global economy is marked by a series of fundamental shifts and transformations that have occurred in recent decades, (Delios et al., 2021). These changes reflect evolving dynamics in the global economic landscape, (Dube & Campbell, 2023). Several key aspects that define the changing nature of the global economy are the emergence of emerging markets as major players in the global economy, (Swart, 2021). Countries such as China, India, Brazil and others have experienced rapid economic growth and become important contributors to global GDP, (Cleveland & McCutcheon, 2022). The growing middle class in these countries is also creating new

consumer markets, influencing global trade and investment patterns, (Paplekaj, 2021). The digital revolution has fundamentally changed the way business is conducted globally, (Liu, 2021). Technological advances, particularly in information technology and the internet, have facilitated cross-border communication, e-commerce, and the development of digital services, (Asiegbu & Chukwuokolo, 2020). This not only changes the way companies operate, but also opens up new opportunities for innovation and entrepreneurship, (Guriev & Papaioannou, 2022). Additionally, the global economy has seen significant shifts in the organization of global supply chains, (Winter, 2020). Companies increasingly rely on complex global supply chains to acquire materials, manufacture goods, and distribute products, (Yeganeh, 2020). This interconnectedness enables efficient production, but also makes businesses vulnerable to disruptions, such as natural disasters and political instability, (Walker, 2022). Along with this, there is a transition from a traditional manufacturing-based economy to a knowledge and servicebased economy, (Maswood, 2021). The value of services, including finance, technology, health care, and education, has grown significantly, (Underhill et al., 2020). Additionally, trade agreements and economic blocs, such as the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have seen significant improvements in the global economy, (Konrad, 2021). These agreements have facilitated cross-border trade and investment, while changing the dynamics of global trade flows, (Ng & Zhang, 2022). Trade negotiations, tariff terms and regional cooperation are increasingly becoming factors influencing global business strategy, (Pham & Bright, 2022). Therefore, changes in trade regulations and cooperation between countries have a significant impact on a company's ability to access global markets, (Moran, 2021). Environmental and sustainability issues have also become a major concern in the changing global economy, (Wong Villanueva et al., 2022). Concern about environmental sustainability and climate change has driven a focus on green and sustainable industries, (Cook, 2023). Many governments and companies are adopting environmentally friendly business practices and investing in renewable energy sources to overcome these challenges, (Guzmán-Valenzuela, 2023). Additionally, the global financial environment has become increasingly connected, with global financial institutions and markets playing a central role in capital allocation and investment, (Schrooten, 2021). This interconnection has implications for financial stability and financial risk management globally, (Randa & Arsyam, 2023). In this changing global economic era, adaptation and innovation are the keys to success, (Alexiadou & Rönnberg, 2022). Companies must be able to keep up with change and take strategic steps to take advantage of the opportunities offered by an increasingly connected global economy, (Aman & Seuring, 2023). Meanwhile, they must also pay attention to the challenges that come with these developments, such as sustainability, regulatory compliance and global risk management, (Galperin et al., 2022). Awareness of these changing

dynamics is critical for stakeholders around the world who wish to remain relevant and sustainable in an ever-changing global economic environment, (Nudurupati et al., 2021). Explain the main Arguments In The Debate Over The Impact of Globalization In the debate regarding the impact of globalization, there arevarious arguments that come from different points of view, (Prasetyo et al., 2021). On the side of globalization, the main arguments involve increasing economic growth, job creation, and reducing poverty in various parts of the world, (Higgins-Desbiolles, 2021). They also emphasize that globalization drives efficiency and innovation through global competition, as well as enabling cultural exchange that increases understanding between different societies, (Vecchi et al., 2021). On the other hand, critics point out that globalization exacerbates economic inequality, with unequal benefits, and results in unemployment and lower wages in some countries, (Uddin et al., 2023). They also highlight negative impacts on the environment, cultural homogenization, and dependence on global actors that can threaten national sovereignty, (Lu et al., 2020). Given these diverse arguments, the impact of globalization remains a topic of deep and growing debate in various contexts and levels, (Abuhussein & Koburtay, 2021). In the global debate regarding the impact of globalization, it is important to remember that its effects are not always evenly distributed across the world, and their impacts can differ greatly depending on the context, (Akpinar & Ozer-Caylan, 2022). For example, economic dependence on international trade may make some countries more vulnerable to global market fluctuations, while others, which have successfully integrated themselves into global markets, may have experienced rapid economic progress, (Rodgers et al., 2022). Therefore, it is important to recognize that the impact of globalization is a complex phenomenon and can vary greatly depending on the situation, (Malik & Garg, 2020). Overall, the debate on the impact of globalization reflects a variety of views and approaches, (Afshan et al., 2021). Proponents of globalization highlight the economic benefits, efficiency, innovation, and cultural exchange that result from globalization, while critics emphasize issues such as inequality, environmental impacts, cultural diversity, and dependency, (Rubel et al., 2021). The impact of globalization is an issue that continues to grow and is important in global discussions, which requires a deep understanding and a balanced approach in managing it, (Kafetzopoulos et al., 2020). Challenges for Management Prentice The globalization process opens up very significant opportunities and challenges for management practices, (Al-Kwifi et al., 2020). On the opportunity side, globalization allows access to vast global markets, opening up new growth and revenue potential for companies, (Akkermans et al., 2020). For example, a small e-commerce business can easily sell its products to customers all over the world through platforms like Amazon and eBay, (Amankwah-Amoah et al., 2021). Additionally,

globalization opens the door to diverse human resources from around the world, allowing companies to recruit individuals with specialized skills and diverse skill sets, which can support innovation and create a dynamic workforce, (Mangaliso et al., 2022). Management also has the opportunity to optimize resource allocation in a more efficient manner, such as outsourcing tasks to lower cost areas. Additionally, globalization facilitates global networks that allow companies to build partnerships and collaborations with other companies around the world, creating opportunities for mutual growth and expansion, (Jonsson & Vahlne, 2023). Darmawan & Grenier, (2021), However, globalization also brings a number of challenges to management practices. Management must confront the complexities of managing cultural diversity in the workplace, including differences in cultural norms, communication styles, and work practices that may require a more nuanced leadership approach, (Y. Wang et al., 2023). Complex global supply chains can be a source of problems, especially when disruptions occur due to factors such as political instability, natural disasters or trade disputes, (Butzbach et al., 2020). Compliance with international regulations is also a challenge, and failure to fulfill these obligations can result in legal issues and reputational damage, (Ben-Daya et al., 2021). Finally, management must also consider ethical and social responsibility issues at a global level, such as sustainability and ethical business practices, (Al Shraah et al., 2022). Thus, management practices in the era of globalization require adaptability, the ability to communicate across cultures, and a comprehensive understanding of the opportunities and challenges that surround it, (Fonseca & Picoto, 2020). In the era of globalization, company management is not only faced with increasingly fierce competition in the global market but also with changes in the way business operations are carried out, (Hsieh, 2020). This involves adapting to the continued development of information and communications technology, enabling crossborder teamwork and enabling real-time communications with clients and business partners around the world, (Ciulli & Kolk, 2023). Management must integrate advanced technology systems, maintain data security, and ensure that their teams have the technological skills necessary to meet these challenges, (Schneider & Thomson, 2023). This also means that management must focus on innovation in the development of products and services that are relevant to diverse global markets, (Akova & Kantar, 2021). Lierse, (2022) ,In addition, management must consider the role of ethics and social responsibility in making business decisions in the era of globalization. This includes ensuring that business operations comply with strict environmental and social standards, as well as paying attention to the social impacts that may arise from business decisions, including the impact on local communities, (Teece, 2022). Concern for ethical and social issues is increasingly becoming a focus for consumers and stakeholders, (Tamunomiebi & John-Eke, 2020). Therefore, management must take sustainable and responsible actions to maintain the company's image and support longterm sustainability, (Hassan et al., 2022).

Thus, management in the era of globalization is not only about optimizing profits, but also about running a business responsibly and integrating ethical values in corporate culture, (Paddison & Hall, 2022). CONCLUSION Overall, globalization is a complex and profound phenomenon that encompasses various aspects of modern life. While it brings positive economic opportunities and cultural exchange, it is also accompanied by serious challenges. On the one hand, globalization has created broader global markets, motivated innovation, and facilitated cross-border interactions. It has raised living standards in many regions of the world and enriched the human experience through intensive cultural exchange. However, on the other hand, economic disparities are increasing between countries, as well vulnerability The global economy, which is vulnerable to crisis, is a major concern. In addition, concerns regarding the loss of cultural identity under the impact of globalization are also increasing. In facing the complexities of globalization, it is important to take a balanced approach. While the opportunities of globalization need to be fully exploited, it is also crucial to overcome its negative impacts. International collaboration and cooperation are key to reducing economic inequality, protecting cultural diversity, and building a stable global financial system. With a deep awareness of these challenges, we can embrace the benefits of globalization while protecting fundamental human values and ensuring the sustainability of the global ecosystem.

CHAPTER 2 EXPLORING NATIONAL DIFFERENCES IN POLITICAL, ECONOMIC, AND LEGAL SYSTEMS FOR INFORMED MANAGEMENT PRACTICES INTRODUCTION Global industries are typically dominated by a few disproportionately large and influential transnational corporations, or keystone actors. While concentration of economicproduction is not a new phenomenon, in an increasingly interconnected and globalized world, the scale of the impacts of keystone actors on diverse social-ecological systems continues to grow.(Hileman et al., 2020). By delving into the intricate tapestry of global political, economic, and legal landscapes, organizations can enhance their adaptability andeffectiveness in diverse international environments (Philips, 2022). Varied economic ideologies, such as capitalism, socialism, and mixed economies, underpin the allocationof resources, wealth distribution, and market dynamics (H.- J. Chang, 2022). The success of these endeavors hinges on a nuanced understanding of the interwoven dynamics (Ofet al., 2023). In our increasingly interconnected and globalized world, businesses and organizations are extending their reach across international borders at an unprecedented rate. This expansion into foreign markets brings both opportunities and challenges, as companies navigate diverse national contexts with varying political, economic, and legal systems. These differences have a profound impact on management practices and strategies (Journal, 2022). Problem lies in the fact that many citizens are unable to finance the costs of theireducation. Some countries have implemented a system of financing that is contingent on income, seeking to improve the number of students entering HE and to increase access to educational financing; however, this system requires commitments from higher- education institutions, the country, and companies; thus, this text analyzes the challenges and difficulties regarding the implementation of the current system (Garzón-Correa et al., 2022). Particular conditionsin the external environment are associated with market-driven entrepreneurship—more specifically, startup or early-stage business activity that addresses opportunities in the market (opportunity-driven entrepreneurship), and that which offers unique and novel products or services to customers (innovative entrepreneurship) (Ali et al., 2020).

DISCUSSION LO2-1 Understand how the political systems of countries differ. However, if the utilized system of government is not synchronized, it can be assured that failures in governance will arise.In the context of international business, understanding these diverse political systems is paramount. These differences significantlyimpact economic policies, trade regulations, and business operations, making it essential for international businesses to navigate and adapt to the unique political landscapes ofthe countries they operate in. ((Azoeva et al., 2020)). In this context, the economic factoralways strives to enhance the nation's economy and is evaluated as a vital national interest. One of the national interests in the economic aspect includes bolstering the trade cooperation balance of a nation to strengthen its industrial sector, among other objectives. (Nazara, 2023). Therefore, in navigating this era of globalization, diverse political systems and effective governance are the keys to success for countries in the global economic context. Political systems that align with a nation's social, cultural, and economic conditions form the foundation that enables sustainable development on the international stage. (Said et al., 2023). Legal Compliance and Business Ethics, Differences in legal systems require businesses to carefully understand local rules and regulations. Mistakes in understanding or disregarding local legal regulations can have serious consequences, including fines andsanctions. Therefore, international businesses need strong compliance policies and must ensure that all their actions align with the local legal framework (Mickiewicz et al., 2021). Market Strategies and International Expansion, Understanding the political systemin target markets is a critical step in planning marketing strategies and exploration. Businesses need to tailor their approaches based on the political landscape of the countries they intend to operate in (Said et al., 2023). LO2-2 Understand how the economic systems of countries differ. In this era of globalization, where commodity exchange and investments swiftly cross national borders, understanding the differences in economic systems across various countries becomes a crucial key to international business success (Hedlund, 2022). The

title, "Understanding the Varieties of Economic Systems Across Countries," explores the crucial concept of economic systems, which form the foundation of a nation's financial framework. These systems encompass the rules, institutions, and arrangements governing resource allocation and the distribution of goods and services within a country They exert a profound influence on a nation's economic terrain, impacting aspects ranging from employment prospects to living standards (Katusiime & Schütt, 2020). . One of the central distinctions in economic systems lies between market economies and planned economies. Market economies, or capitalism, rely on supply and demand in a free market to allocate resources (de Soysa & Vadlamannati, 2023). This approach empowers individuals and businesses to make decisions based on their self-interest, encouraging competition and innovation. Planned economies, in contrast, feature centralized government control over resource allocation, production, and distribution, asseen in socialist or communist systems (Type et al., 2023). Another significant difference in economic systems arises from the extent of government intervention. Some countries adopt a laissez-faire approach, advocating minimal government involvement in economic affairs. This model allows markets to operate with minimal regulation, aiming to foster efficiency and productivity (Bassen & Kovács, 2021). Conversely, interventionist systems involve substantial government intervention through policies like taxation, subsidies, and regulatory frameworks to address market failures and ensure social welfare (Murschetz, 2020). The prevalence of private ownership and control of resources is another pivotal aspect of economic systems. In capitalist economies, the majority of resources are ownedby private individuals or entities, who can utilize, sell, or trade them based on market dynamics (Rakhimova et al., 2021). In contrast, in socialist or mixed economies, there isoften a combination of private and public ownership, with certain crucial industries or services under government control (O’Neill, 2020). Economic systems also manifest disparities in their approach to income distribution. For instance, capitalist systems tend to yield a broader range of income disparities, with some individuals accumulating substantial wealth while others may struggle to meet basic

needs (van Doorn & Badger, 2020). Conversely, socialist models often strive for more equitable wealth distribution through progressive taxation, social safety nets, and public services (Picciotto, 2022). LO 2-3 Understand how the legal systems of countries differ. The legal systems of nations are pivotal in shaping their societal, economic, and political landscapes, encompassing laws, regulations, and judicial processes (Berger, 2021). Understanding the distinctions and variations between these legal frameworks is crucial for individuals and businesses involved in global activities. It equips them to effectively navigate legal environments and make well-informed decisions (Mende, 2023). The primary differentiation in legal systems stems from their origins and bases. Common law systems, prevalent in countries like the United States and the United Kingdom, rely heavily on precedent and case law for interpreting and applying legal principles (Wardhani et al., 2022). Conversely, civil law systems, typically found in continental Europe, place greater emphasis on codified statutes and comprehensive legal codes as their primary legal sources . This core distinction influences the resolution of legal disputes and the interpretation of laws . The role of the judiciary and legal professionals also varies considerably across different legal systems . In some nations, judges are seen as impartial interpreters of thelaw, while in others, they may play a more active role in investigating and establishing facts. Additionally, the legal profession itself, including the qualifications and responsibilities of lawyers, may differ, affecting the provision and accessibility of legal services (Putra, 2020). The process of creating and amending laws is another crucial aspect that sets legal systems apart. Certain nations have a centralized legislative process, where a singleentity is responsible for formulating and modifying laws (Crystallography, 2020). Others may have a more decentralized system, involving multiple branches or levels of government in the legislative process (Konashevych, 2020). This diversity can lead to variations in the speed and ease of legal changes.

Additionally, the level of codification in legal systems significantly contributes to their divergence (Ludwig & Mullainathan, 2021). Civil law systems often rely on comprehensive codes that cover various legal areas, providing a structured and clear framework. Conversely, common law systems may adopt a more adaptable and flexible approach, allowing for greater evolution of legal principles through case-by-case decisions(Yelvita, 2022). The treatment of contracts and property rights can also differ significantly amonglegal systems. Some countries may emphasize written contracts and prioritize the sanctityof contractual obligations (Man, 2021). In contrast, others may attach greater importance to relational and verbal agreements. Similarly, the concept of property rights, including ownership, transfer, and protection, can vary, impacting how assets are managed and utilized (Jakobsson et al., 2021). Human rights and civil liberties are vital elements of legal systems, and their interpretation and protection may diverge widely (Endsjø, 2020). Some nations may haverobust legal frameworks dedicated to safeguarding individual freedoms, while others may adopt a more restrained approach (Phillip Esavwede et al., 2023). This disparity can influence areas such as freedom of speech, privacy rights, and due process. Criminal justice systems also demonstrate significant differences, particularly regarding procedures, penalties, and rehabilitation efforts (MacUlan & Gil Gil, 2020). Some legal systems prioritize punitive measures, focusing on deterrence and punishment. Conversely, others may emphasize rehabilitation and the reintegration of offenders into society (Izuchukwu, 2023). The role of administrative law and regulatory bodies further contributes to the diversity of legal systems (Laird, 2021). Some countries have extensive regulatory frameworks governing various industries and activities, while others may adopt a more hands-off approach. This variance can impact areas such as business operations, environmental compliance, and consumer protection (Rodiyah et al., 2023). To summarize, comprehending the distinctions among legal systems is imperative for anyone engaging in global affairs, whether individuals, businesses, or policymakers

(Dionysis et al., 2022). It empowers them to anticipate and navigate legal challenges, promotes effective cross-border collaborations, and ultimately ensures adherence to the laws of the countries in which they operate (Y. Chang et al., 2020). By acknowledging and respecting these differences, stakeholders can foster stronger global relationships and contribute to a more harmonious and legally informed international community. LO 2-4 Explain the Implication for management practice of national differences in political economi. Specifically, we consider the juxtaposition of national differences and levels of firm interaction with the different contexts. Thus, we develop the concept of friction to assess levels of economic and political differences. We further argue that economic friction will have a curvilinear (U-shaped) effect on foreign divestment, whereas political friction will produce a monotonic (positive) effect Here iare ithe ikey iimplications ifor imanagement ipractice iresulting ifrom inational idifferences iin ipolitical ieconomy (Nguyen et al., 2022). The main purpose of the paper is to analyse the international market entry strategies in the light of globalisation processes and to propose a conceptual model of turnkey projects as market entry mode (Vassileva & Nikolov, 2021). A market entry strategy is the planned method of delivering goods or services to a new target market and distributing them there. When importing or exporting services, it refers to establishing and managing contracts in a foreign country (Philips, 2021). Risk assessment and management was established as a scientific field some 30-40 years ago (Aven, 2020). Risk assessment and management play a pivotal role in ensuring the successful execution of construction projects (Negi, 2021). Legal iand iregulatory iframeworks idiffer isignificantly. iManagers imust iensure ithat itheir ibusinessioperationsicomply iwith ilocal ilaws iand iregulations, iwhichimay iencompass iareas ilike ilabor, itrade, ienvironmental istandards, iand itaxation. iNon-compliance ican ilead ito ilegal iand ireputational irisks i(GarzónCorrea iet ial., i2022). i Although practitioners have long sought to define risk culture, itsrole in strategic decision-making is not yet well understood (Osman & Lew, 2021). Motivated by the paucity of studies examining the effects of strategic decision-making processes on accelerated internationalization, this study draws on the organizational information processing theory (Petrouet al., 2020). In summary, national differences in political economy have far-reaching

implications for management practice. Successful international management requires adaptability, sensitivity to local contexts, and a deep understanding of the political and economic landscape in each market. By considering these implications, businesses can make informed decisions that contribute to their success in a complex global business environment (Philips, 2021). CONCLUSION In today's globalized business landscape, exploring and understanding the national differences in political, economic, and legal systems is imperative for informed management practices. The complexities and nuances of these differences have profound implications for how businesses operate, make strategic decisions, and build sustainable success on the international stage. As organizations expand into foreign markets, they must recognize the diversity in political systems, ranging from democracies to autocracies,and the impact of these systems on regulatory environments and government relations. A nuanced understanding of economic systems, whether market-driven, mixed, or centrally planned, guides decisions regarding trade, currency exchange, and consumer behavior. Additionally, navigating the various legal systems, such as common law, civil law, and religious law, is crucial for ensuring compliance, protecting property rights, and resolvingdisputes. Management practices that embrace these national differences are better equipped to develop effective market entry strategies, assess and mitigate risks, and create value for stakeholders. The implications for management are vast, encompassing market entry strategies tailored to each unique environment, careful risk assessment and management, compliance with local regulations, and adaptability to diverse cultures and ethical considerations. Moreover, building positive government relations, optimizing supply chains, and making strategic decisions that align with the local context are pivotal. Collaborativeapproaches through alliances and networks, utilizing the digital realm for e-commerce, and venturing into turnkey projects demonstrate the flexibility and creativity required to thrive in global markets.

The path to informed management practices in the face of national differences in political, economic, and legal systems begins with comprehensive knowledge and recognition of these differences. As businesses acknowledge and adapt to the intricacies of political, economic, and legal systems, they are well-positioned to lead in the global arena while fostering international relationships and mutual understanding.

CHAPTER 3 Maintaining a Balance of Environment and Economy through Global Trade andInvestment INTRODUCTION Global trade and investment have become an inevitable phenomenon in recent years (Aflah et al., 2023; E. Sinaga & L. Siagian, 2023). In the era of globalization, the worldis becoming more open and connected, making international business a necessity for many companies to compete in the global market and to achieve greater profits (Gijoh, 2021; Gumilar, 2018). However, rapid economic growth not only brings benefits to companies, but can also have adverse environmental impacts (kementrian keuangan, 2023; Sidiq, 2023). One example of the imbalance between the economy and the environment is theoccurrence of climate change, which is increasingly damaging the conditions of the earth (Utami, 2021). Climate change is caused by human activities that create a lot of greenhouse gas emissions, such as carbon dioxide, methane, and ozone (S. W. Siregar &Hasbi, 2023; Utami, 2021). Increased industrial and transportation activities are the maincause of environmental damage (Nagel & Suhartatik, 2022) . Therefore, in international business, companies need to pay attention to sustainable policies in their operations (Rifa & Hossain, 2023). B Many global companieshave already implemented sustainable principles,such as prevention action plansin theworkplace and increased supply chain sustainability (Nelson & Meiden, 2023). However,sustainable policies can only be implemented with regulations and cooperation amongcountries (Artha Madya Saragih et al., 2023). This requires actions not only from companies and society, but also from governments in strengthening environmental policies, introducing environmentally friendly technologies, and providing incentives for companies that implement sustainable business practices (Ariyadi, 2022; Nurita, 2021). On the other hand, adopting environmental policies can bring long-term benefitsto companies (If’all & Unsunnidhal, 2023). By implementing environmentally responsiblepractices, companies can find new ways to increase productivity and efficiency in theiroperations (Suradi et al., 2021). In addition, implementing sustainable policies can alsoimprove a company's reputation in the global market (Kumajas et al., 2022). In today'sdigital age, consumers and investors are becoming increasingly concerned about their environmentally friendly products and investments (Almeida & Gonçalves, 2023; Phan et al., 2023). Therefore, creating sustainable business practices can enhance a company's

image and provide better business opportunities (Dwi Lestari & Merthayasa, 2023; Sjioenet al., 2023; Vinata Wisnu Saputra et al., 2023). Maintaining the sustainability of international business indeed requires hard work and innovation from all relevant parties (Dwi Krisdianto & Gunawan, 2023).However, success in implementing sustainable business practices can provide long- term benefits for the environment and the economic prosperity and society (Mutiara, 2022; Ramadlani et al., 2023). In order to improve the sustainability of international business, companies and governments must work together to find waysto promote environmentally friendly andsustainable business practices (Sitanggang & Nasution, 2023). In addition, governments also need to encourage the development of green technology and strengthen international cooperation to achieve harmony between the economy and the environment (Lestari, 2020). Therefore, this paper discusses maintaining the balance between the environment and the economy through global trade and investment whichcan provide a better understanding of international business that can promote sustainable economic growth. LITERATURE REVIEW Level Of Economic Development In A Country The level of economic development in a country is an important parameter that reflects the development or progress of the economy in a country for the welfare of society and the competitiveness of a nation at the global level (Andriani et al., 2021). The level of economic development in a country refers to the growth and progress of its economy over aperiod of time. This can be measured through several economic indicators, with a common measure of economic development being the gross domestic product (GDP) of a country (Hill, 2023). GDP is considered a benchmark for a country's economic activity, measuring the total monetary value or market value of all final goods and services produced within a country's borders over a period of time (Cahyadi, 2019). Economic development is a long-term economic issue for a country (Gafur Masâ€TMud& Rochaida, 2022). The level of economic development is influenced by several factors, such as poverty levels, unemployment rates, income inequality, and economic growth (Yuniarti020). To measure the economic development of a country'ssociety, all of these aspectsshouldbe considered comprehensively (Hill, 2023). Countries with high levels of economic development tend to have high levels of economic growth as well (Anugrah et al., 2020). Therefore, many countries are striving to increase their level of economic development throughvarious economic development policies and programs (Firda Miftakhul Jannah, n.d.). The economy of a country is said to experience development and an increase in the growth rate of its economic activities when it is higher than what was achieved previously (Yuniarti, 2020). Economic growth is one of the key indicators in measuring the economic development of a country (Junaedi & Salistia, 2020). An analysis related to economic growth is important as a basis

for formulating macroeconomic policies and national development targets(Nurwanda & Rifai, 2018). This is in line with efforts to create high-quality and high-growth economic development through a mix of government policies, both from a fiscal and monetaryperspective (Widjanarko, 2019). Economic policy formulations must take into account the business cycles that occur in the economy so that the policies are more targeted (Murni, 2019). The stage of economic development of a country can vary depending on factors such as poverty rates, unemployment rates, income inequality, and economic growth (Yuniarti, 2020). The first factor is poverty rates, poverty is one of the factors that influences the economicdevelopment of a country (Yuniarti, 2020). Relatively high economic growth will greatly affect the poverty rate, because with a growing economy, there will be a lot of production of goods and services produced in a region, which will ultimately absorb labor, thereby increasingper capita income, and in turn reducing poverty rates in a region (Gafur Masâ€TMud & Rochaida, 2022). The second factor is unemployment rates, high unemployment rates will hinderthe process of development and growth of an economy (Sugianto & Permadhy, 2020). The causesof unemployment can be classified into education, skills, wages, information, and job availability factors (Sugianto & Permadhy, 2020). Another factor that hinders economic development is income inequality (Yuniarti, 2020). Differences in income create a distance between the rich and poor, and unequal prosperity indicates that there are still many people in upper and lower classes (Farhan & Sugianto, 2022). The last factor is economic growth, the growth rate formed from various economic sectors indirectly reflects the level of economic change that occurs (Setiawan & Huda, 2021). The government is striving to increase the level of economic development through various economic policies and development programs (Firda Miftakhul Jannah, n.d.). On effort to increase economic development is to apply economic equalization by developing a business to avoid factors such as poverty rates, unemployment rates, income inequality, and economic growth (Normansyah, 2022). ). In addition, the government has also sought to implement inclusive economic development (Maulani, 2021). Long-term significant positive effects of inclusive economic growth have an influence on economic function, health function,education function, and per capita gross regional domestic product (Safitri, 2021). Identifying Changes In Macroeconomic And Macropolitical Factors Occurring Globally Macropolitics and macroeconomics are two crucial concepts in modern economic science (Gkiouleka et al., 2018; Prasaja, 2020). Macropolitics refers to government policies aimed at influencing the overall economy (E. I. Siregar & ., 2019). It is an effort to achieve economic goals, such as economic growth, low unemployment and inflation, and price stability(Barcelos et al., 2023). Examples of macropolitical policies are monetary policies, including central bank interest rate policies and controlling the amount of money circulating in the economy (Fajarini et al., 2023; Yusri et al., 2023). There are also fiscal policies, such as government spending and tax

regulations, which can affect consumption and investment (Sriyana, 2021; Zakiyatul Miskiyah et al., 2022). Macroeconomics is an economic discipline that studies economic activities comprehensively (Veritia et al., 2019). What is discussed is no longer parts of an economy orjust companies, but already discusses the overall economic activity in the economy (Veritia etal., 2019). This includes the analysis of economic dynamics, such as growth, inflation, and business cycles (Nihayah & Rifqi, 2022). Macroeconomics also looks at how economic policies can affect the economy as a whole (Eka Mulia Nurul Al Amin, 2020). ). In practice, macropolitics and macroeconomics are closely related because macropolitical policies are often based on macroeconomic analysis and understanding (Masfiatun, 2021). Overall, they help to understand how the economy functions and how government policies can influence economic growth and stability (Adxamovna, 2022; Ichsan & Verena, 2020) . Changes in macroeconomic and macropolitical factors occurring globally are currentlycaused by the COVID-19 pandemic, significantly affecting the world (Junaedi & Salistia, 2020) . Social restrictions, business closures, and international travel restrictions, as well as lifestyle changes, are affecting economic growth, investment, and political stability (Oeliestina, 2020). International trade tariffs, such as the trade war between the United States and China, have prompted other countries to take protectionist measures by importing fewer goodsfrom abroadand increasing import taxes as a way to protect domestic industries (Dicky, 2020; Wati et al., 2023). Furthermore, there are changes in climate. Climate change can be a significant problemfor the political stability and economic growth of countries that are highly dependent on agriculture and tourism sectors (Yusandi & Karimi, 2022; Zainuri et al., 2023). Industrialized countries that are major contributors to greenhouse gas emissions will face pressure to reducetheir carbon emissions (Prasetyo & Windarta, 2022) . Technology advancements such as the Fourth Industrial Revolution and Big Data have transformed business practices worldwide andcreated new jobs (Daniaty et al., 2022; Hidayah, 2019) This has also spurred social and political changes by promoting the desire to reduce the use of fossil fuels and change the way we work(Adelina et al., 2021). Population changes, especially population growth, can affect political stability and economic growth worldwide (Fatriani et al., 2023; Indriyani & Setyowati, 2023). An increase in the population can create competition for jobs and resources that impact poverty and unemployment rates (Rahmanto & Ratnasari, 2023; E. S. Siregar et al., 2023). On the other hand,a small population growth can also affect a country’s economy (Oppusungu et al., 2023; G. Y. G. Sinaga et al., 2023). Migration policies applied by each country can also affect political stability and economic growth worldwide (Fitriana et al., 2023; Oppusungu et al., 2023) . Such policies affect the inflow and outflow of labor, foreign investment, and international trade, which can impact economic growth (Dwi & Jalungono, 2022). Geopolitical changes, such as international competition and foreign relations, can affect political stability and economic growth

in countries worldwide (Santoso et al., 2023). Geopolitical changes can also create uncertainty in investing and doing business in other countries (Mulyawanti et al., 2023). There are several changes in macroeconomic and macropolitical factors occurring globally, such as the COVID-19 pandemic. The pandemic has had a significant impact on the world (Ariga, 2023; Maswati et al., 2023) . It has changed the way we work, interact, and do business worldwide (Siri et al., 2022; Tripalupi, 2022). Many countries have implemented lockdowns to ensure the safety of their citizens, which has impacted the economies of these countries (Markuat, 2022; Ningsih et al., 2022). Secondly, changes in trade policies have madedeveloped countries begin to consider limiting imports from developing countries to reduce their spending and strengthen their own economies (Ari et al., 2023; Ujang Badru Jaman & Endah Pertiwi, 2023). Thirdly, national economic policies contribute to changes in macroeconomic and macropolitical factors (Abdurrahman et al., 2023; Usul, 2023). Measures such as interest rate cuts, debt payment delays, and fiscal incentives are used by governments to provide stimulus

to weakened economies due to the COVID-19 pandemic (Achmad Fauzi et al., 2023; Pardede & Listari, 2023). Fourthly, the green revolution is gaining more importance as governments and companies shift towards renewable resources to reduce their dependence on fossil fuels (Afandi, 2023). The process towards a green revolution may require significant investment at its inception but will result in long-term economic and environmental benefits (Lestari, 2020).Lastly, political transitions have taken place in some countries, where new governments can cause changes in macroeconomic policies, such as tax reductions or changes in their approach to free trade (Permana et al., 2023). Describe How Transition Economic Are Moving Toward Market – Based System Transition economies undergo a set of structural transformations intended to develop marketbased institutions (Stermieri et al., 2023). These include economic liberalization, where prices are set by market forces rather than by a central planning organization (Humphrey,2019). In addition to this trade barriers are removed, there is a push to privatize state-owned enterprises and resources, state and collectively run enterprises are restructured as businesses,and a financial sector is created to facilitate macroeconomic stabilization and the movement ofprivate capital. (Koll & Watt, 2022) The transition from a centrally planned or non-market economy to a market-based economic system is a complex and multifaceted process (Atal et al., 2022). This transition ofteninvolves a shift from government control to more private sector participation in economic activities (Atmaja et al., 2023). Here is a description of how such a transition typically takes place: Policy reform in economics refers to the deliberate and systematic changes made to government policies and regulations with the aim of improving economic performance and addressing specific economic challenges (Sriyana, 2021). These reforms can vary widely in scope and nature and can encompass a range of policy areas, including fiscal, monetary, trade,labor, and social policies (Indrawati et al., 2019). The specific goals of policy reform often depend on the economic and social objectives of a country. Policy reform in economics is a dynamic process that requires careful planning,stakeholder engagement, and often, the support of international organizations (Koll & Watt, 2022). The effectiveness of policy reform is often influenced by a country's political

environment, capacity for implementation, and the existence of consensus among stakeholders (Suleiman & Waterbury, 2019a). Successful policy reforms can lead to improved economic performance and societal well-being, while poorly implemented reforms can have negative consequences (Shapiro & Willig, 2019) After a policy Reform is deregulation. Derrgulation is a key component of transitioningto a market-based system. This involves removing or loosening restrictions and controls on various industries and sectors, allowing market forces to determine prices, supply, and demand (Necoechea-Porras et al., 2021). Deregulation in the context of economic transitions refersto the process of reducing oreliminating government regulations and controls in various sectors of the economy(Necoechea-Porras et al., 2021). This is a common element in transitioning from a centrally planned or heavily regulated economic system to one that is more market-oriented (Hossin, 2023). Deregulation is a significant component of economic transitions, particularly when moving from a planned or state-controlled economic system to a more market-oriented one (Oatley & Petrova, 2022). Its success depends on careful planning, effective regulation, and consideration of social and political factors to ensure that the benefits of increased competition and market-driven efficiency are realized while mitigating potential drawbacks. (Oatley & Petrova, 2022) Privatization is a State-owned enterprises are often privatized, meaning they are sold toprivate individuals or corporations (Suleiman & Waterbury, 2019b). This transfer of ownership shifts economic decision-making power from the government to private entities . Privatizationin the context of economic transitions refers to the process of transferring ownership and control of state-owned assets, enterprises, or resources to private individuals or entities (Shapiro& Willig, 2019). This is a fundamental aspect of transitioning from a centrally planned or state- controlled economic system to a more market-oriented or capitalist one (Suleiman & Waterbury,2019b). Privatization is a significant component of economic transitions, with the potential to bring increased efficiency and dynamism to formerly state-controlled sectors (Humphrey, 2019). Its success depends on careful planning, transparent processes, effective regulation, andconsideration of social and political factors to ensure that the benefits of privatization are realized while mitigating potential drawbacks(Suleiman & Waterbury, 2019b).Market Entry and Competition is a Promoting competition by allowing new businessesto enter the market is critical. It encourages innovation and efficiency (Atal et al., 2022). This often involves removing barriers to entry, such as licensing requirements and trade restrictions(Atal et al., 2022). Market entry and competition play a pivotal role in economic transitions, particularly when moving from a centrally planned or state-controlled economic system to a market-based one (Chang & Hsieh, 2023). This transition is characterized by policies and strategies aimed at promoting competition and creating opportunities for new businesses to enter the market(Ozatbekova et al., 2022).

Market entry and competition are central to fostering economic growth, driving innovation, and increasing overall economic efficiency during economic transitions (Zarifhonarvar, 2023). Careful planning, effective regulation, and monitoring are essential to ensure that the benefits of competition are realized while addressing potential challenges and protecting the interests of consumers and vulnerable populations (Atal et al., 2022). Property Rights and Rule of Law: Protecting property rights and enforcing contracts are essential for a market-based system (Barzel & Allen, 2023). A strong legal framework ensuresthat individuals and businesses can safely invest and engage in economic activities (Hossin, 2023). Property rights and the rule of law are foundational principles in economics and governance that have a significant impact on the functioning of markets and the overall economic system (Bhagat & Hubbard, 2022). They play a critical role in ensuring economic stability, fostering investment, and protecting individual and business interests (Ascarya, 2022). In summary, property rights and the rule of law are essential pillars in economics and governance. They provide the foundation for a stable and prosperous economic environment by protecting ownership, facilitating investment, and ensuring the equitable enforcement of contracts and laws (Bhagat & Hubbard, 2022). These principles are integral to fostering trust andconfidence in the economic system. Monetary policy in the context of economic transition involves the formulation and implementation of strategies and measures by a country's central bank or monetary authority to manage the money supply, interest rates, and exchange rates as part of broader economic reforms during a transition (Gorodnichenko et al., 2023). The primary goal of monetary policyduring economic transitions is typically to achieve macroeconomic stability, control inflation, and support the transition to a market-based economic system (Yin et al., 2022). Effective monetary policy during economic transitions is crucial for achieving economic stability and creating a conducive environment for investment, growth, and development (Boneva et al., 2022). It is a key component of the broader economic reform efforts that countries undertake when transitioning to market-based economic systems (Mahmood et al., 2022). Financial sector development is a critical component of economic transitions, particularly when shifting from a centrally planned or state-controlled economic system to a market-based one (Vo, 2022). The financial sector plays a pivotal role in facilitating economicgrowth, capital allocation, and investment (Salehi et al., 2022). Financial sector developmentis a multifaceted and ongoing process in economic transitions (Salehi et al., 2022). It is vital for fostering investment, innovation, and economic growth while maintaining financial stability. A well-developed financial sector can help channel savings into productive investments, promote entrepreneurship, and enhance overall economic performance (Khan et al., 2022). Developing a robust financial sector is crucial. This includes the establishment of banks, stock markets, and other financial institutions that can facilitate capital allocation and investment (Atmaja et al., 2023).

Monitoring and Evaluation is a continuously assessing the progress and impact of the transition is essential. Governments and institutions should collect data and analyze the effectsof policy changes to make adjustments as necessary (Kung et al., 2022). Monitoring and evaluation in the context of economic transition refer to the systematic process of assessing and measuring the progress, outcomes, and impacts of economic reforms and policies undertaken during a transition from a centrally planned or state-controlled economic system toa market-based one(Guo et al., 2022). Effective monitoring and evaluation are essential to ensure that the transition is on track, that the intended goals are being achieved, and to make informed adjustments to policies and strategies as needed (Kung et al., 2022). Transparency and accountability are fundamental principles in economics transition, especially when shifting from a centrally planned or state-controlled economic system to a market-based one (Wang & Zhang, 2022). These principles are essential for building trust amongvarious stakeholders, including citizens, businesses, and investors. Promoting transparency and accountability in government and business operations builds trust and confidence in the marketbased system (Williams et al., 2022).Transparency and accountability are not only ethical and moral imperatives but also crucial for the success of economic transitions (Saldanhaet al., 2022). They create an environment of trust and confidence, which is essential for

attracting investment, fostering economic growth, and achieving sustainable development (Williams et al., 2022). The transition to a market-based economic system is typically a gradual and complex process that requires careful planning, policy adjustments, and sometimes external assistance (Chang & Hsieh, 2023). The pace and specific strategies may vary depending on the unique circumstances of the country in transition. Successful transitions often lead to increased economic efficiency, innovation, and higher living standards, but they can also pose challengesand require careful management to avoid negative social and economic consequences. (Wang & Zhang, 2022) Explain The Implication For Management Practice Of National Difference In Political Economy The national differences in political economy can have significant implications for management practices, particularly for businesses operating across borders or in international markets (Tian & Feng, 2022). Understanding and adapting to these differences is essential for the success of multinational corporations and for managers dealing with international business environments (Liu & Li, 2022). The regulatory environment, also known as the regulatory landscape or regulatory framework, refers to the set of rules, laws, policies, and government regulations that govern and guide various aspects of economic and business activities within a specific jurisdiction orindustry (Parra-Arroyo et al., 2022). These regulations are established by governmental authorities at different levels, and they play a significant role in shaping and controlling how businesses operate (Zhao et al., 2022). The political economy of a country dictates itsregulatory environment. Differences in laws, regulations, and government policies can significantly impact management practices(Zhao et al., 2022). Managers need to be aware of and comply with various rules related to areas such as labor, environmental standards, productsafety, and taxation (Liu & Li, 2022). The stability of a country's government and its political risk can affect business operations(Askari, 2012). In politically unstable regions, managers may need to consider strategies for mitigating risks, such as investing in political risk insurance or diversifying operations to more stable areas (Athari et al., 2023). Understanding government stability andrisk is essential for businesses and investors when considering operationsin a particular countryor region. It informs risk assessments, strategic planning, and decision-making, helping to mitigate potential challenges associated with political and governance factors (Schwendner etal., 2015). Political risk assessments and country risk analyses are common tools used by businesses and investors to evaluate government stability and risk in specific locations (Davies& Ng, 2011). Trade policiesin economicsrefer to the rules, regulations, and measuresthat a countryor economic bloc (such as the European Union) implements to govern its international trade activities (Russo et al., 2023). These policies are designed to shape a country's trade relationships, protect domestic

industries, and influence the flow of goods and services acrossits borders (Caliendo & Parro, 2022). Trade policies have a significant impact on a nation's economic performance and its global trade interactions (Russo et al., 2023). National differences in trade policies, such as tariffs, trade agreements, and export/import regulations, can impact supply chain management, production processes, and market entry strategies. Managers must navigate these differences to optimize their international trade activities(Evenett et al., 2022). Differences in tax policies can impact financial management practices (Tendengu et al.,2022). Managers need to consider tax implications when making decisions about investments,capital allocation, and financial reporting (Özmen et al., 2022). taxation and fiscal policies areessential tools for governments to manage their economies, address societal needs, and achievevarious economic and social objectives (Adebayo & Samour, 2023). The design and implementation of these policies require careful consideration of their impact on economic growth, income distribution, and government finances (Mahmood et al., 2022). Effective taxation and fiscal policies can contribute to economic stability and sustainable development (Tendengu et al., 2022). Labor market conditions refer to the state of employment and job opportunities withina specific region or country (Zarifhonarvar, 2023). These conditions are influenced by variousfactors and can have a significant impact on job seekers, employers, and the overall economy.(Atal et al., 2022) Labor market conditions are dynamic and can change over time due to economic cycles, technological advancements, shifts in industry demand, and various other factors (Argyroudis et al., 2022a). Job seekers, employers, policymakers, and labor marketanalysts closely monitor these conditions to make informed decisions regarding employment, investment, and economic policies (Argyroudis et al., 2022b). A market entry strategy is a plan or approach used by a company to enter a new geographic or product market (Adxamovna, 2022). It involves making informed decisions about how to introduce products or services, establish a presence, and compete in a new market.The choice of market entry strategy depends on various factors, including the target market, the company's goals, resources, and the competitive landscape (Wood, 2023). Selecting the appropriate market entry strategy is a critical decision that can impact a company's success in a new market. It should align with the company's goals, resources, risk tolerance, andunderstanding of the local market dynamics. Flexibility, adaptability, and a well-thought-out strategy are key to successful market entry and long-term growth (Abaidoo & Agyapong, 2021). In summary, national differences in political economy have far-reaching implications for management practices in international business. Adapting to these differences, staying informed about the political and regulatory environment, and being culturally sensitive are essential for effective management in a globalized world (Krauss & Kroeber, 2021).

Conclusion Global trade and investment have a significant impact on both the economy and the environment. Maintaining a balance between these two is essential for sustainable development. While global trade provides opportunities for economic growth and development, it also leads to environmental degradation due to increased emissions and resource depletion. Therefore, it is crucial to adopt policies and practices that promote sustainable trade and investment. This can be achieved by promoting the use of eco-friendly technology, investing in renewable energy, and enforcing international environmental regulations. In conclusion, balancing the environment and economy through global trade and investment requires collaborative efforts between governments, private sectors, and individualsto ensure that economic development is achieved without compromising the environment andfuture generations' well-being.

CHAPTER 4 “CULTURE AND INNOVATION: HOW CULTURAL DIFFERENCES INFLUENCEECONOMIC GROWT INTRODUCTION Culture and innovation are two crucial factors that can influence economic growth (Kusumaningsih et al., 2023).In modern economics, innovation is of paramount importance increating value, economic growth, and job creation (Widiatmaka et al., 2023).Meanwhile, cultural capital and values can also play a role in economic growth by enhancing productivity through innovation (Izza, 2023).However, the impact of cultural differences on economic growth is not fully understood and remains an intriguing area of research for scholars and policymakers (Faisal et al., 2023).This journal aims to analyze the role of cultural capital and values in economic growth through innovation and how cultural differences can affect economic growth (Indra Sabella, 2023). Cultural differences can influence the mindset and work style of a society(Budiono & Masing, 2022). Cultures that promote creativity, risk-taking, and collaboration tend to encourage innovation (Wu et al., 2023). Conversely, more traditional and hierarchical culturesmay hinder innovation efforts due to an emphasis on conformity and strong norms (Ha et al., 2023). The values embraced by a culture can affect investment priorities and human resource development (Sulviana et al., 2023). Cultures that value education, research, and technological development are more likely to have a workforce ready to adopt innovation (Sari, 2023).Meanwhile, cultures that emphasize immediate profit and compliance may prioritize innovation less(Jantin et al., 2022). Barriers in interacting with other cultures can also impact innovation (Hariandi, 2022). Too many cultural differences can impede the transfer of knowledge and technology between countries, while cultures open to external influences tend to be more capable of leveraging global innovation (Ismanto & Pebruary, 2023). The importance of social aspects in innovation should not be overlooked (Monazam Tabrizi & Masri, 2021). Cultures that encourage collaboration, open communication, and strong interpersonal relationships can support innovation (Budiman & Budiman, 2021). Conversely, cultures that tend to be individualistic or highly competitive may hinder collaboration and the flow of ideas necessary for innovation (Essayahi & Aloune, 2022). Cultural differences can also be reflected in government regulations and policies

(Yang et al., 2023). Cultures that emphasize strict regulation and protection of local interests may hinder innovation by restricting market access and competition (Selfana et al., 2023). On the other hand, cultures that support open markets and healthy competition tend to promote innovation (Bayyinaturrosyi et al., 2023). Approaches to failure can also vary based on culture (Setiawan & Rochim, 2023). Cultures that celebrate failure as a valuable lesson are more likely to be bold in experimentation and trying new things, which can, in turn, lead to innovation. In contrast, cultures burdened by a fear of failure may inhibit innovation efforts (Nasution et al., 2023). LITERATURE REVIEW Explain What Is Meant By The Culture Of A Society Culture in society is a collection of norms, values, beliefs, practices, and traditions shared by its members, influencing how they behave, interact, and lead their daily lives (Yuliyus & Susilawati, 2021). Culture reflects the collective identity of a group and can encompass aspects such as language, religion, art, music, food, value systems, and more(Izza, 2023). Within the culture of a society, you'll find several fundamental elements essential to itsidentity (Amelia et al., 2023). Beliefs and values represent the core principles and convictions that shape ideas of right and wrong, good and bad, and inform moral and ethical choices (Nasution et al., 2023). Customs and traditions encompass the rituals, ceremonies, and practices passed down through generations, including religious ceremonies, holidays, and cultural celebrations (Prawita & Mifti Jayanti, 2023). Norms establish the accepted standards of behavior, determining what is deemed socially acceptable and regulating how people interact with each other (Muslimah, 2023). Language is a fundamental aspect of culture, influencing how people communicate, express ideas, and transmit knowledge (Yang et al., 2023). Artistic expressions through art, music, literature, dance, and more are not only creative outlets but also reflections of cultural values and aesthetics (Essayahi & Aloune, 2022). Social institutions such as family, education, religion, and government are also shaped by the prevailing culture, impacting their structure and functioning (El Fadil & St-Pierre, 2023). Material culture includes tangible objects and artifacts created and used by a society, like tools, clothing, architecture, and technology (A. Lestari & Frinaldi, 2023). The culinary traditions of a society also play a crucial role in culture, reflecting its history, geography, and values through its unique foods and culinary practices (Novan Ramadhan

et al., 2023). Belief systems and worldviews are shaped by cultural perspectives on the world, encompassing cosmology, religious beliefs, and philosophical outlook (Prajogo & Tahang, 2023). Social hierarchies within a society are similarly affected by culture, determining power dynamics, decision-making processes, and societal roles and expectations (Jainuddin etal., 2023). Culture is a dynamic entity that evolves over time, responding to historical events, technological advances, and interactions with other cultures (Pradnyani, 2023).It plays apivotal role in shaping the identities and behaviors of individuals and communities within a society, and understanding a society's culture is vital for comprehending its values, traditions, and social dynamics (Aswar, 2023). Culture play a crucial role in the economic development of a country. Various cultural elements, including social norms, values, beliefs, and practices passed down from generation to generation, have a significant impact on a society's ability to foster innovation (Hariandi, 2022). Hence, a profound understanding of how cultural differences affect innovation and economic growth becomes exceedingly important. To delve into this, it is crucial to understand how culture influences innovation and how cultural variations can shape theeconomic outcomes of a country (Ismanto & Pebruary, 2023). Moreover, culture also plays a key role in providing social support and an environment that fosters innovation (Mohd. Yusuf D.M. et al., 2022). In countries that embrace a culture promoting cooperation and social interaction, individuals tend to be more open in sharing their ideas, creating an atmosphere that supports innovation through productive idea exchange. Furthermore, differences in the dimensions of femininity and masculinity in culture also influence innovation (Monazam Tabrizi & Masri, 2021). Identify The Forces That Lead To Differences In Social Culture Understanding the factors that create differences in social culture involves an understanding of the various elements and influences that shape the distinctive characteristics of a society's culture (Budiono & Masing, 2022). Some key elements that influence cultural diversity include aspects of history and the impact of colonization, which can introduce new concepts, languages, and traditions or preserve existing cultural practices (Ponomareva et al., 2022). Furthermore, the geography and physical environmental conditions of a region can shape distinct cultural practices and ways of life (Purnomo et al., 2023). Religion and belief systems that dominate a society also play a significant role in shaping cultural values, rituals, and morals (Wu et al., 2023).

Historical factors wield considerable influence, with events such as colonization, migrations, wars, and interactions with other cultures leaving an enduring mark on a society's traditions and collective memory (Nasution et al., 2023). Geography and environmentalconditions, including climate, resources, and terrain, significantly affect how people live and engage in economic activities, thereby molding cultural norms and practices (Setiawan & Rochim, 2023). Religion and belief systems play a central role in shaping the moral and ethical codes of a society, leading to diverse rituals, customs, and values (Amelia et al., 2023). Language,another fundamental element of culture, influences thought patterns, communication, and knowledge transmission, contributing to linguistic and cultural diversity (Prawita & Mifti Jayanti, 2023). Economic structures, wealth distribution, and development levels have a direct impact on societal practices and hierarchies (Bayyinaturrosyi et al., 2023). The form of government and political ideologies can influence power structures and individual freedoms (Buchanuddinet al., 2023). Technological advancements and innovations can drive cultural shifts andadaptations (Melisa Alvionita et al., 2023). Cultural differences influence innovation, shape the mindset and behavior of individuals within a society, the unique culture of each country, from individualism to collectivism, and tolerance for uncertainty, affect creativity and the approach to risk in innovation. (Hsu & (Kellan) Nguyen, 2023). Culture encourages individualism and the exploration of new ideas, while collectivist culture prioritizes cooperation and social harmony(Hu & Qi, 2022). Cultural differences greatly influence the behavior of individuals and communities in terms of their attitudes toward risk in entrepreneurship and their ability to adapt to change (Sihombing, 2023). Culture shapes norms and perceptions in society, which play a crucial rolein driving innovation and economic growth (Pourgharib & Asl, 2022). Countries with culturesthat encourage risk-taking and rapid adaptation to change tend to be more innovative, particularly in the business and technology sectors (Al Qusaeri et al., 2023). Cultural differences also yield variations in values related to entrepreneurial risk and readiness to adapt to change (Budiman & Budiman, 2021). Countries that embrace a culture that encourages risk-taking and the ability to confront change tend to exhibit higher levels of innovation, especially in the context of business and technology (Costa & Habib, 2023).

Identify The Business And Economic Implications Of Differences In Social Culture Social cultural differences have a significant impact on the business and economic fields and need to be a focal point of understanding for individuals and companies operating on a global scale (Kai, 2023). The implications of these cultural differences involve various aspects, ranging from consumer behaviors and preferences to market entry strategies (Andin & M.Z, 2023). Understanding cultural differences allows companies to tailor their products, marketing methods, and distribution to align with local cultural preferences, thus reducing the risk of products not fitting into that cultural environment (Ha et al., 2023). Consumer choices and behaviors are shaped by cultural subtleties, affecting when, how, and what people buy (Fidorova et al., 2023). Adapting pricing, products, and marketing strategies to harmonize with these cultural distinctions is pivotal for achieving success (Satria Efandi et al., 2023). Market entry and expansion strategies must be attuned to the cultural compatibility of products and services in new markets (Widayani, 2023). Understanding the local culture is fundamental for making well-informed decisions regarding international growth (Suriadi & Frinaldi, 2023). Cultural sensitivity is crucial in marketing and advertising campaigns, as messages, symbols, and values must resonate positively with the local audience (Abdul Rohman Alasyari et al., 2023). This often requires modifications to marketing materials and strategies to prevent cultural misunderstandings or offense (Novan Ramadhan et al., 2023). Cultural differences give rise to varying management and leadership styles, and what works well in one cultural setting might be ineffective in another (Prajogo & Tahang, 2023). Businesses operating on a global scale must navigate these disparities in their management practices (Jainuddin et al., 2023). Efficiency in the supply chain and logistics can also be influenced by cultural factors (Puspita & Putra, 2023). Punctuality, business etiquette, and communication styles can impactthe flow and effectiveness of these operations (Muslimah, 2023). Cultural differences in entrepreneurial risk-taking approaches have a significant impact on the level of innovation in a country (Augusta et al., 2022). A culture that encourages measured risk-taking often creates an environment in which individuals and companies feel comfortable exploring new ideas (El Fadil & St-Pierre, 2023). In contrast, a highly conservative culture that is averse to taking risks can hinder the progress of innovation,with individuals tending to be more compliant with existing norms and

avoiding the risks associated with innovative endeavors (Essayahi & Aloune, 2022). Recognize How Differences In Social Culture Influence Values In Business Understanding how cultural differences in society impact values in the business world holds great significance in recognizing the impact of cultural diversity in various aspects of global business (Rogito & Nyamota, 2022). There are several cultural factors that influence values in the business world, one of which is how culture guides work ethics and its influence on employee approaches and productivity (Sulviana et al., 2023).First and foremost, ethical values are deeply intertwined with cultural norms and moral standards (Rachmad & Sasongko, 2023). What may be deemed an ethical business practice in one culture can be seen as ethically questionable in another (Wijayanto et al., 2023). It is imperative for businesses to comprehend these variations and act ethically within diverse cultural contexts (Dolphina et al., 2023) Work ethic is another domain where cultural distinctions are vividly evident (Bustomi & Katiah, 2023). Work hours, the level of commitment to the job, and the overall attitude toward work can vary dramatically from one culture to another (Armiyanti et al., 2023). These differences influence business values related to dedication, hard work, and the balance between professional and personal life (Daraba et al., 2023). Communication styles, encompassing directness, formality, and non-verbal cues, are also heavily influenced by cultural norms (Yudistia, 2023). Understanding how diverse cultures communicate is paramount for effective business interactions and the nurturing of robust relationships (Nurul Purniasari, 2023). The hierarchical structure of a business and the exercise of authority are profoundly shaped by cultural norms (Sari et al., 2023). While some cultures favor a more hierarchical and top-down approach, others lean towards a flatter, more collaborative organizationalstructure (Taufiqurrahman, 2023). Values concerning negotiation methods can diverge significantly (Noverianto & Munahefi, 2023). Some cultures prioritize win-win approaches, emphasizing collaboration, while others may embrace competitive negotiation values (Handayani et al., 2023). Recognizing these nuances is pivotal for fruitful international business transactions (Cici Nugraheni Wirjosantosa, 2023). The perception of time and punctuality varies across cultures, affecting business values related to scheduling, meeting deadlines, and the importance placed on time (Pasiska et al., 2023).

Relationship-building is integral to many cultures, shaping values that underscore trustand loyalty (Yopy Ratna Dewanti et al., 2023). In contrast, some cultures may prioritize more transactional, less relationship-centric business interactions (Mahmudah & Pamungkas, 2023). Risk aversion, innovation, and creativity values fluctuate as well, impacting business strategies, decision-making, and adaptation to change (Widodo et al., 2023). Furthermore, corporate social responsibility, diversity, inclusion, and sustainability values are all intertwined with cultural norms, guiding a company's stance on these crucial aspects of business (Nurjatisari et al., 2023). Demonstrate An Appreciation For The Economic And Business Implications Of Cultural Change As cultural shifts occur, consumer behaviors can change significantly (Selfana et al., 2023). As culture evolves, consumer preferences and actions evolve as well (Muslimah, 2023). Therefore, for businesses, it's crucial to understand these changes because they need to adapt their products, services, and marketing strategies to remain relevant to the ever-evolvingconsumer expectations (N. I. Lestari et al., 2022). The inability to adapt to these changes can result in a decrease in market relevance and attractiveness (Bayyinaturrosyi et al., 2023). Furthermore, cultural changes also bring new market opportunities (et al Sari, 2023). With the emergence of new trends and shifts in cultural values, new opportunities open up for innovative products and services (Jantin et al., 2022). Businesses that can quickly identify and capitalize on these opportunities have the potential to gain a competitive advantage (Jantin et al., 2022). When societies face cultural changes, they also seek new solutions to emerging challenges or shifting preferences, Thiscan drive the development of innovative products and technologies, creating opportunities for businesses to develop and market these products and innovations (Ayu et al., 2022). Effective communication stands as a pivotal aspect of the business world, yet communication styles diverge among cultures (Prawita & Mifti Jayanti, 2023). Cultural norms dictate the degree of directness, formality, and the significance attributed to nonverbal cues (Amelia et al., 2023). Grasping and adapting to these variations is critical for successful cross-cultural business interactions and for forging robust working relationships (Setiawan & Rochim, 2023). Cultural values extend to the domain of management and leadership within organizations (Puspita & Putra, 2023). Hierarchical structures, decision-making procedures, and the distribution of authority can exhibit significant variation across

cultures (Nasution et al., 2023). For global businesses, navigating these divergences in management practices is paramount, respecting the cultural values associated with authority and leadership (Sudirjo, 2023). Negotiation styles equally reflect cultural values (Pourgharib & Asl, 2022). Approaches tonegotiation can range from cooperative and focused on mutually beneficial outcomes in some cultures to competitive and oriented toward individual gain in others (Kholifaturrohmah et al.,2022). Identifying and accommodating these subtleties is key for successful international business transactions and negotiations(Lestari et al., 2022). The concept of time and punctuality exhibits variation across cultures, influencing values tied to scheduling, adhering to deadlines, and the importance assigned to time management in business (Kai, 2023). Business relationships, too, are profoundly shaped by culture, with certain societies placing a strong emphasis on building trust and longterm partnerships, whileothers lean more toward transactional, less relationship-oriented interactions (Faisal et al., 2023). Ethical values, for instance, are deeply intertwined with cultural norms, and what may be considered ethical in one culture could be viewed as ethically questionable in another (Kusumaningsih et al., 2023). Similarly, work ethics, communication styles, and organizational hierarchies are significantly shaped by cultural norms (Widiatmaka et al., 2023). Values related to punctuality, relationship-building, and approaches to negotiation and risk-taking also vary across cultures (Kusumaningsih et al., 2023). Furthermore, the significance placed on time and values concerning innovation, sustainability, and corporate social responsibility fluctuate in accordance with cultural norms(Faisal et al., 2023). In conclusion, differences in social culture exert a profound impact on the values that guide business practices (Kusumaningsih et al., 2023). Acknowledging and respecting these cultural values are essential for fostering successful cross-cultural business interactions and building strong international business relationships (Ponomareva et al., 2022). Companies thatpossess a deep understanding of and adapt to these cultural values are better prepared to navigate the global business landscape and thrive within diverse cultural contexts (Ayu et al., 2022). In the realm of business and technology, countries that promote a proactive attitude towards risk tend to produce more innovative products and services (Augusta et al., 2022). They often succeed in creating an environment that supports technological advancements, as well as in fostering startup companies and breakthrough innovations (Augusta et al., 2022). Furthermore, culture also plays a significant role in the ability to adapt to change

(Sudirjo, 2023). A culture that encourages rapid adaptation and flexibility tends to provide a strong impetus for innovation (Sudirjo, 2023). In cultures like these, individuals and organizations are often open to change and not bound by tradition or existing methods. They are more inclined to seek new solutions and more efficient ways to accomplish tasks (Yang et al., 2023). CONCLUSION The conclusion from these sentences is that culture and innovation play a central role in a country's economic development. Cultural factors, such as social norms, values, and inherited thought patterns, influence a community's ability to foster innovation. Cultures that encourage quick adaptation, measured risk-taking, and collaboration tend to support innovation, while conservative and risk-averse cultures may hinder it. Additionally, culture creates an environment that fosters the exchange of ideas, which in turn sparks innovation. In summary, cultural differences have a significant impact on innovation, affecting economic growth and technological advancement. In the context of business and technology, countries that embrace a culture that promotes risk-taking and rapid adaptation to change often produce more innovative products and services. They establish an environment conducive to technological advancement and provide support to startups focused on new discoveries. This culture encourages individuals and organizations to explore new ideas without being bound by tradition or existing methods, making them more inclined to seek new solutions and more efficient ways of completing tasks. Therefore, culture plays a crucial role in shaping a country's business and technology landscape, which can directly influence competitiveness and innovation in the global market.In brief, culture within society encompasses a wide range of elements such as norms, values, practices, and traditions that have a profound influence on daily life. Within this cultural framework, we find various components like beliefs, customs, traditions, norms, language, art, social institutions, material culture, culinary traditions, belief systems, and social hierarchies. Culture is not static; it evolves over time in response to historical events, technological progress, and interactions with other cultures. It is crucial to grasp a society's culture to understand its values, traditions, and social dynamics. Cultural differences arise due to factors like history, geography, religion, language, economic systems, government structures, technological advancements, and more. Thesedifferences affect innovation, risk-taking, and entrepreneurship, shaping business approaches, decision-making processes, and adaptability to change.

Social cultural variances have an impact on various aspects of the business world, including consumer behavior, market entry strategies, marketing and advertising, management and leadership styles, supply chain efficiency, and others. Understanding and adapting to these differences are essential for effective global business operations.

Cultural values also have a significant role in shaping business values associated with ethics, work ethics, communication styles, hierarchical structures, negotiation methods, viewson time and punctuality, relationship-building, and values concerning innovation, sustainability, and corporate social responsibility. In a dynamic cultural context, businesses must adjust to shifts in consumer behavior, recognize fresh market opportunities, and communicate adeptly in crosscultural settings. This adaptability is critical for staying relevant in the market and achieving global success. All in all, recognizing and respecting cultural values are fundamental for prospering in diverse cultural environments and forming robust international business relationships.

CHAPTER 5 THE ROLE OF ETHICS AND CORPORATE SOCIAL RESPONSIBILITY IN ACHIEVING SUSTAINABILITY GOAL INTRODUCTION Currently, business activities have become commonplace in everyday life, from the smallest to the largest scale (Aviatri et al., 2021). In business, of course business ethics are always needed. In an era of ever-growing globalization, Corporate Social Responsibility (CSR) programs increasingly encourage companies to consistently consider their reputation as an indicator of overall performance in the eyes of their consumers. This underscores the view that a company's reputation is the only method that can be used to assessthe character and integrity of that company (Yustien & Mirdah, 2020). Sustainable development is a development initiative that covers various dimensions, including economic, social, environmental and cultural aspects, with the aim of meeting current needs without sacrificing or reducing the needs of future generations. (Ananta et al., 2020). Driven by the understanding that achieving or maintaining previously relevant sustainable development is only possible when there is a balance between economic, social and environmental aspects, this has given rise to a new awareness among the business community in Indonesia to adopt Social and Environmental Responsibility (Hidayat et al., 2020). Today's corporate business ethics are aimed at fulfilling responsibilities towards various parties with interests (stakeholders) whose reach goes beyond economic and legal obligations. It reflects the company's commitment to shareholders and other stakeholders, in addition to economic and legal aspects, with the aim of meeting broader demands and obligations(Hanum & Fazrah, 2023). A reputable company should embrace ethical business practices to safeguard the welfare of all parties involved, encompassing employees, customers, investors, communities, and the environment (Hasoloan, 2018) in (Suprapto & Alvina, 2023). Awareness of corporate ethics enables organizations to make sustainable decisions, create a healthy corporate culture, and build strong relationships with their stakeholders. Corporate sustainability is a business approach that moves dynamically by adopting sustainability principles necessary to include stakeholders and achieve shareholder goals. (Aksoy et al., 2020). One form of company program is CSR. Corporate Social Responsibility (CSR) is a concept and practice that a company adopts as a means of fulfilling its responsibility to the community and the environment within the company's operational sphere. This includes implementing various activities aimed at improving the

welfare of the local community, building public facilities, providing scholarships to children in need, as well as providing financial donations to improve the welfare of the community in general, especially those around the company's location (Pratiwi1 et al., 2021). Activities from these CSR programs can influence the company's image, which in turn, supports improving the company's financial performance and marketing strategy. As a result, this increase in performance contributes positively to business continuity (Sari et al., 2023). Company involvement in social responsibility is very important in efforts to build a positive image of the company, this also has the capacity to create a beneficial impact to the sustainability and development ofthe company (Siti Nur Hazizah, 2021). Apartfrom providing benefits to the community and environment around the company, implementing CSR through community empowerment also improves the public perception of the company's reputation., and brings the company towards better business sustainability in the future (Nabilla & Hamid, 2021). Therefore, this article will explain how the role of ethics and corporate social responsibility is key to achieving broad sustainability goals, including economic, environmental and social sustainability. Here we will discuss various aspects of this concept, including Ethics and International Business, Ethical Dilemmas, Roots of Unethical Behavior, Philosophical Approaches to Ethics, and Managerial Implications. LITERATURE RIVIEW OF DISCUSSION Comprehend The Ethical, Corporate Social Responsibility, And Sustainability Challenges Encountered By Global Business Enterprises. Ethics originates from the Greek word 'ethos,' which signifies habitual conduct, eventually becoming an integral part of philosophy. Ethics can be described as a set of guidelines for moral behavior, aligned with moral values (Name et al., 2023). In conversations about ethics and its importance in the business world, the focus is on applying moral and ethical principles as the essential foundation of any business organization. In the course of conducting business operations, every enterprise adheres to a code of behavior that encompasses both financial and societal aspects. Typically, the determination of what is right or wrong, or what might be considered morally acceptable, is contingent upon an individual's or group's established priorities and predefined values. Furthermore, this framework is accompanied by specific responsibilities linked to the broader society (Bhushan, 2021).

The moral responsibility of every company should be a top priority, as implementing an ethical code often leads to improved financial performance. Engaging in ethical practicesentails working in a morally sound direction, making choices aligned with the right path, and discerning what is morally acceptable and unacceptable in the realm of business. It necessitates refraining from the unlawful use of copyrighted materials and processes, as well as avoiding involvement in acts of bribery. Business ethics exhibits several key characteristics, including: a) Code of behavior: Business ethics acts as a guiding code of behavior, delineating which actions are considered acceptable or unacceptable for the improvement of society as a whole. It represents a set of standards that anyone aspiring to engage in business should follow. b) Based on moral and societal principles: In essence, business ethics is grounded in fundamental principles and moral values that pertain to business conduct in general. The concept of Corporate Social Responsibility (CSR) is frequently a significant concern within Indonesian businesses. In Indonesia corporate social responsibility is required by law (Fatima & Elbanna, 2023). Corporate Social Responsibility involves a company's obligation to maintain a harmonious and equitable connection with the local community, encompassing its environment, values, customs, and culture. CSR, in addition to ensuring the environment's well-being and reducing the hazards associated with industrial production, should also demonstrate its commitment to environmental sustainability (Shayan et al., 2022).. Corporate social responsibility can also encompass business conduct tied to ethical standards within the business sphere. Consequently, companies have an obligation to uphold the social well-being associated with their business. In practice, companies should be driven to engage in more corporate social responsibility initiatives beyond mere regulatory requirements. There is a notable connection between Corporate Social Responsibility (CSR) in a company and the strategies inherent in its operational approach. CSR and a company's performance are widely regarded as paramount factors in wealth generation and enhancing overall corporate performance. When implementing Corporate Social Responsibility, it's imperative for all stakeholders within the company to look beyond short-term objectives. Corporate social responsibility might not deliver an immediate influence on financial results. In this context, it is crucial for the company's owners and top management to acknowledge that employees play a critical role in achieving the success of Corporate Social Responsibility. This is because the company invests its resources in CSR, and the organization reaps significant benefits from implementing Corporate Social Responsibility initiatives.

In the contemporary business landscape, there is a growing consciousness of environmental concerns. Decision-makers are confronted with external influences, such as a heightened public demand for eco-friendly products and shareholder expectations to protect the environment. In addition to the external impetus for greater sustainability, businesses are encountering intensified competition due to the effects of globalization and technological advancements(Dhyanasaridewi&Augustine, 2021). Studiesinvestigating the connection between sustainability innovation and company performance have been conducted previously, but the findings remain inconclusive. A substantial number of businesses perceive sustainability innovation as cost factors due to the substantial initial investments, extended payback periods, and relatively minor environmental benefits associated with their implementation (Möller & Herm, 2021). The global business landscape is increasingly concerned with the imperative of harmonizing profit generation and environmental and social responsibility, with sustainability emerging as a central preoccupation. This discussion aims to explore critical sustainability challenges in international business and underscore their significance. International enterprises often operate intricate supply chains and global networks, which can result in a substantial ecological impact. Activities related to these operations, such as carbon emissions, resource utilization, and waste production, can contribute to climate change and environmental deterioration. Prioritizing sustainable sourcing is essential, requiring companies to ensure that their supply chains adhere to ethical and environmentally conscious standards. Resolving issues like child labor, equitable wages, and responsible resource extraction is of utmost importance (Santarem & Begnis, 2021). Global companies are anticipated to adhere to ethical obligations encompassing equitable labor practices, community involvement, and fostering diversity and inclusivity among their workforce. Overlooking these facets may result in harm to their reputation (WHO, 2021). Traversing a intricate network of international and domestic regulations poses a notable difficulty for global enterprises. Adhering to labor regulations, environmental guidelines, and ethical benchmarks is imperative (Gao, 2023). International corporations must dedicate resources to sustainable innovation, which includes developing environmentally friendly products, embracing renewable energy sources, and incorporating eco-friendly technologies. Transparency in revealing endeavors related to sustainability plays a vitalrole in establishing trust with stakeholders. Numerous multinational corporationsrelease yearly sustainability reports to convey their dedication to sustainable initiatives (Yadav et al., 2021). Sustainability has shifted from being a secondary matter to a primary focus in international business. Tackling these sustainability challenges is vital not only for the protection of the planet and its

inhabitants but also for upholding a positive brand reputation and remaining competitive in an increasingly environmentally aware global market. The cited journals offer valuable perspectives on each of these critical facets of sustainability in international business. Identify An Ethical, Corporate Social Responsibility, or Sustainability Quandary. Identifying ethical conduct and fundamental principles is a core element of moral philosophy and is frequently a subject of discussion in scholarly writings (Carlin, 2021). Recognizing ethics entailsthe identification of actions, choices, or conduct that harmonize with established moral values and principles (Jakobsen & Sunde Mæhre, 2023). While these principles may exhibit variation in different cultures, certain ones enjoy broad acknowledgment, including values like truthfulness, equity, and the regard for the rights and dignity of individuals. Within this discourse, we will delve into the notion of recognizing ethical behavior and furnish a journal citation for more in-depth study (O’Sullivan et al., 2022). Identifying ethical conduct poses a challenge due to the fact that ethical standards can differ among various cultures and societies. What is regarded as ethical in one culture may not be perceived similarly in another. Grasping the concept of cultural relativism is an essential aspect of ethical recognition (Jakubanecs et al., 2023). Ethical awareness is guided by a set of fundamental moral principles, including respect for autonomy (recognizing individuals' right to make their own choices), the promotion of beneficence (acting in the best interests of others), the avoidance of non-maleficence (preventing harm), and the pursuit of justice (ensuring fair and impartial treatment of individuals) (Różyńska, 2022). The concept of Corporate Social Responsibility (CSR) has attracted significant attention in recent years(Wu&Amoasi, 2023).It embodies a company's dedication to ethical and socially responsible business strategies that go beyond the sole objective of profit generation (Bocean et al., 2022). Conversely, it directsits attention towards evaluating the influence of an organization on society, the environment, and various stakeholders (Alsayegh et al., 2020). Within this conversation, we will explore the core principles of CSR, its significance, and how it affects businesses, society, and the environment. CSR involves a company's voluntary actions to address social and environmental issues that extend beyond its legal obligations. This encompasses charitable endeavors, sustainable business methods, ethical labor practices, and engagement with the community (Rehman & Khan, 2023). CSR frequently corresponds with the "triple bottom

line" notion, emphasizing the importance of not just financial profits but also social and environmental achievements. A company's prosperity is assessed based on its economic, social, and environmental impacts (Shim et al., 2021). An integral component of CSR involves the acknowledgment and involvement of diverse stakeholders, including employees, customers, communities, and investors. Grasping their concerns and anticipations is vital in formulating efficacious CSR approaches (Jha, 2022) . Businesses that place CSR at the forefront often experience an enhanced reputation, resulting in heightened customer confidence and loyalty to the brand. This can ultimately lead to enduring financial advantages (Il Park & Xiao, 2021). CSR efforts can draw in top-tier talent, as individuals with a social conscience often look for employers that share their principles. Additionally, a robust CSR program can elevate employee morale and enhance employee retention rates (Il Park & Xiao, 2021). CSR can aid in the reduction of risks linked to environmental, social, and governance matters. Businesses that take a proactive approach to addressing these issues are more prepared to manage crises and adapt to regulatory modifications (Dr. M. Ganesan @ Kanagaraj, K. Guru, 2021). CSR promotes sustainable business methods, which result in the reduction of a company's environmental impact and resource usage. This not only benefits the environment but can also generate cost reductions (López, 2022). CSR is far more than a mere trendy term; it stands as an essential component of contemporary business strategy. Enterprises that incorporate CSR into their practices not only contribute positively to society and the environment but also reap rewardsin terms oftheir reputation, talent attraction, and risk mitigation. The core of numerous conversations about conscientious and ethical decisionmaking in today's intricate world revolves around sustainability challenges (Fritz, 2022). The emergence of these dilemmas can be attributed to the natural discord between the preservation of the environment, economic growth, and the welfare of society. The pursuit of sustainability involvesseeking a balanced equilibrium that considersthe current requirements while ensuring the well-being of future generations. One of the most significant sustainability challenges revolves around the compromise between economic expansion and the preservation of the environment . Advancements in the economy and its growth frequently result in environmental deterioration, encompassing issues like deforestation, pollution, and the exhaustion of resources. Corporations often grapple with the quandary of giving precedence to immediate profits at the expense of enduring sustainability (Coleman, Anne; Keenan, Laura; Sidhu, 2020). The urgency to provideimmediate financial gains can entice

businesses into making decisions that may not be in accordance with long-term environmental and social sustainability (Coleman, Anne; Keenan, Laura; Sidhu, 2020). Another crucial challenge pertains to the balance between promoting social fairness and safeguarding the environment (Viano et al., 2023). Development initiatives can usher in economic prospects and improved living conditions, yet they can also potentially damage ecosystems and lead to the displacement of local communities (Khan & Yu, 2022). Consumer demand for inexpensive goods frequently incentivizes unsustainable manufacturing methods (Sun et al., 2022). Mass production and the fast fashion industry, for instance, result in substantial waste and may involve the exploitation of labor. Striking a harmonious equilibrium in this context necessitates consumer education regarding responsible choices and the encouragement of companies to embrace environmentally-friendly practices (Farvazova, 2020). Challenges related to sustainability are intricate and encompass various facets, necessitating collaborative endeavors from individuals, institutions, and governments to identify sustainable resolutions. Achieving the proper equilibrium between economic advancement, societal welfare, and environmental conservation is a continuous struggle, but it holds utmost importance for the well-being of our planet and our communities in the future. The Roots of Unethical Behavior In organizations, values contain an element of internal deliberation, the understanding that values express an individual's ideas about what is right, good, or desirable. In the study of organizational behavior, values are considered important(Hildayani & Serly, 2021) A complete ethics program should touch all business functions. This includes operations, human resources, and marketing (Yusnita Arvianti & Sari, 2021). Absolute ethical standards apply. but don't force it. Moral standards apply to all humans, they do not apply to animals, because only humans are rational. Every human action in everything. The area still faces review. Human actions are always being assessed, and at all times they are always being judged.(Fetra Bonita Sari, Risda Amini, 2020). According Khadarisman in (Putri et al., 2020) to Unethical behavior entails actions that diverge from the primary responsibilities or core goals established. Unethical conduct should not be ethically justifiable since it leads to negative consequences for both individuals and the environment. Impact Organizational Culture organizations operating in certain industries tend to behave unethically. The

culture of a particular industry can influence an organization to develop a culture that encourages its members to choose unethical actions.(Pasaribu & Radikun, 2021) Example in Corona Era the organization makes a change in work culture, namely carrying out activities remotely or reducing the number of face-to-face meetings with employees or other people. This will of course affect human relationships with other humans which are related to individual characteristics and ethics in the implementation of work.(Utami, 2021) According to Robbins dalam (Nurhasanah et al., 2022), the most recent research shows that there are seven key characteristics that together capture the essence of organizational culture, which are: The extent to which employees are not only encouraged to introduce new ideas but also to take calculated risks, The level to which employees are anticipated to showcase accomplishments, analytical skills, and meticulous attention to detail, The extent to which management places importance on the outcomes achieved, prioritizing them over the methods and processes utilized. The Influence of Personal Ethics on Unethical Behavior People want to continue to learn and seek information to develop their capacities, especially in solving ethical problems and dilemmas (Fetra Bonita Sari, Risda Amini, 2020) Thistheory,formulated by FritzHeider, positsthat an individual's actions are shaped by a blend of internal influences, particularly external elements like work challenges or fortune..(Hildayani & Serly, 2021). In (Martinelli et al., 2023) so In organizations, individual behavior is a product of the interplay between personal traits and the features of the organization itself. Each person within an organization exhibits unique behaviors, molded by their distinct environments and circumstances.(Wahjono, 2023) Citing Gartner's opinion, Schroeder (2019) in (Yusnita Arvianti & Sari, 2021) said the ethics program should do the following: Identify an ethics program tailored by each company to focus on its needs, Reduce risk of violations and monitor conditions to motivate employees to act in accordance with the ethics program, Establish clear policies and procedures within the company, If someone is accused of a violation, they must be supervised, Training and continued communication, Reinforcing the tendency to behave well, and Managing the ethical function of conduct. The Influence of Decision Making in Unethical Behavior Decision making is "a process of selecting the best alternative from several alternatives systematically to be followed up or to be used as a way of solving problems". Decision making chooses various alternatives that most benefit the various interested

parties.(Pasolong, 2023) According (Palindangan, 2021) six ethical principles discussed here will serve as a guide and a means for reflection before a decision is made : The key that can make a business easier is when an entrepreneur can apply how to carry out ethical business procedures such as being polite and courteous.(Yulia, 2023) What is meant by the principle of good behavior is that there is a prima facie obligation to do good and avoid evil. Every decision should be the best alternative with minimal risk so that unwanted risks do not occur, produce results that can be seen directly and can bring good results.(Subagia et al., 2020) The accuracy of a leader's decision making can be a criterion of competence and trust. If a leader is slow and indecisive, his followers will know that he is a leader who does not dare to take risks (Alexandra et al., 2022). To increase the intensity of ethical decision making requires a positive attitude towards ethical decision making, a positive understanding of subjective norms, and strong behavioral control towards ethical decision making.(Pasaribu & Radikun, 2021) Decisions will be increasingly difficult to make if they have to be made in conditions of uncertainty and risk. When making decisions, it is necessary to consider the assumptions used so that the decision result (payoff) that has the greatest value will be taken. (Nasution, 2021) Decision making will have an inappropriate impact if it is done in the wrong way. Numerous human service entities, particularly those in the public domain, possess inflexible cultures that may lead to decisions that do not align with evolving societal needs and expectations. To alter these outcomes, it is crucial to gain a deeper insight into the assumptions, values, and convictions that set organizational culture apart as a dynamic and evolving process..(Campos-Moreira et al., 2020) Urealistic Performance Goals performance is a difficult concept, both from definition and measurement. To get comprehensive results, performance is not seen from just one measurement dimension, but is seen from two dimensions, operational performance and market performance. Performance (Kristanto, 2020) Performance measures the extent to which a job's objectives have been attained. In contrast, Jamari posited that performance represents a demonstration of the authority, tasks, and obligations entrusted to an individual in order to accomplish the objectives defined by the organization..(Prameswari, 2020) Individuals who have ethical behavior prioritize the interests of the organization over their own interests and contribute positively to

the function and sustainability of the organization. Therefore, in the context of continuous change where innovative behavior is needed to adapt to new changes, employees who have high ethical behavior work enthusiastically.(Ali, 2020) An organization's overall performance is predominantly influenced by the quality of its workforce. When human resources are highly motivated, creative, and capable of fostering innovation, their performance tends to excel. Consequently, endeavors to enhance the capabilities of the human resources are essential..(Aini et al., 2020) The company performance assessment aims to determine the effectiveness of the company's operations and the implementation of appropriate strategies to suit the company's goals, mission and vision.(Nofrianto et al., 2021) Impact Social Cultural Leadership Leadership is a concept that is very close to success in achieving the goals of an organization. towards others to achieve the goals of an organization or cooperative effort. Leadership will greatly color, influence and even determine how an organization achieves its goals (Atijah & Bahri, 2021) Leaders influence change and achieve goals by influencing organizational members to achieve high levels. Positive employee attitudes and behavior are indicators of potential improvement in job performance (Bhayangkara & Raya, 2021) Socio-cultural, political and historical context, policy practices, both concrete and physical regarding leadership styles and the importance of cultural fluency achieved through cultural humility and cultural competence to enhance leadership in various workplaces and environments. (Campos-Moreira et al., 2020) Sustainable leaders understand and accept the world's increasing complexity, making it easier for them to adapt. Guided by strong values, they take bold steps that prioritize the organization's impact on future generations (Peran et al., 2023) Philosophical Approach to Ethics Philosophy of science seeks to restore the spirit of science itself, so that its development does not have a negative impact on human civilization. (Muktapa, 2021) Philosophy is a humble attitude in which people who philosophize feel that they do not know what exists in nature.(Muslim et al., 2022) The link between science and ethics cannot be ignored, science does not only have a ingle impact. its effect on humanity as a universal/general effect. Ethics