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The document discusses Indonesia's poor economic performance in the early 2000s due to political and economic factors like President Suharto's authoritarian rule and corruption, as well as foreign firms exiting the country due to high costs and risks of doing business there. It also covers risks facing foreign companies in Indonesia like infrastructure issues, corruption and lengthy paperwork requirements.

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Frany Ilarde
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49 views4 pages

Learning Activities

The document discusses Indonesia's poor economic performance in the early 2000s due to political and economic factors like President Suharto's authoritarian rule and corruption, as well as foreign firms exiting the country due to high costs and risks of doing business there. It also covers risks facing foreign companies in Indonesia like infrastructure issues, corruption and lengthy paperwork requirements.

Uploaded by

Frany Ilarde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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LEARNING ACTIVITIES

MODULE 2

Name: Shekinah Tria T. Hermoso Score:____________


Section: BSBA-FM 2A Date: December 7, 2021

Case Discussion Questions

1. What political factors explain Indonesia's poor economic performance? What economic factors? Are
these two related?
President Suharto’s autocratic dictatorship was the primary political reason in Indonesia’s
economic collapse. His policies of “repressing internal criticism” and “crony capitalism” caused the
government to become heavily in debt. Despite the IMF’s rescue package, the corrupt government
blocked the money from being used to save the collapsing economy. Foreign investors departing,
factories closing, and a drop in foreign direct investment stock were all economic issues that
contributed to bad economic performance. Along with international investors, private investors
began to withdraw from Indonesia’s “all-important oil business,” reducing one of the country’s key
resources of revenue. The transitional administration, together with Suharto’s corruption and debt,
is a clear reason for investors to pull out of Indonesia. With such insecure conditions in the country,
the risks to enterprises are considerably exacerbated. The political and economic issues that
influence the economy are inextricably linked.

2. Why do you think foreign firms exited Indonesia in the early 2000s? What are the implications for
the country? What is required to reverse this trend?
Large firms determined that doing business in Indonesia was extremely dangerous due to the
country’s huge economic problems. Furthermore, it was incredibly costly owing to the need to pay
bribes in order to keep the enterprises running. Finally, the police pursue international corporate
figures, often to the point of incarceration, in order to extract bribes.

3. Why is corruption so endemic in Indonesia? What are its consequences?


Because government salaries are so low, employees in these jobs are more likely to accept
bribes. Because the police and prosecutors are also participating in the bribery, it is extremely
difficult to prevent such things from happening by apprehending the authorities. Many people are
put off by the fact that it takes an average of 151 days to start a frim. Many overseas investors are
turned off by this since they do not want to go through such a lengthy and costly process to enter
a new market. All of this, in turn, has a negative impact on the Indonesian economy and people.

4. What are the risks facing foreign firms that do business in Indonesia? What is required to reduce
these risks?
Low government investments in public infrastructure, limited access to electricity and modern
sewerage facilities, high oil prices, the long time it takes to complete the paperwork required to start
a business, and high levels of corruption are all high risk factors for foreign companies doing
business in Indonesia. To mitigate these risks, a foreign corporation must have broad knowledge of
current economic and political events as well as the ability to import its own resources.
ASSIGNMENT
MODULE 2

Name: Shekinah Tria T. Hermoso Score:____________


Section: BSBA-FM 2A Date: December 7, 2021

1. Why do countries have different political and legal systems?


Each country's political and legal systems are distinct. The purpose of legal systems is to
improve society. These are the rules that citizens must follow as a code of behavior. People are
equally obligated to follow these legal systems or laws, and anyone who attempts to defy them may
face repercussions. It's difficult to conceive a society without a legal system, because without it,
there would be total pandemonium. No one is going to be able to get justice. There will also be
confrontations between communities and various organizations. As a result, there is always a need
for a legal system that can defend people's rights.

2. Compare the political system of Philippines and China.


The Philippines' present policy strives to improve relations with China at the expense of the of
latter's relationship with the United States, whilst China's current policy aims for more influence over
the Philippines and the region in general while resisting American influence. Over the years, the two
countries have signed several major bilateral agreements, including the Joint Trade Agreement
(1975), the Scientific and Technological Cooperation Agreement (1978), the Postal Agreement
(1978), the Air Services Agreement (1979), the Visiting Forces Agreement (1999), the Cultural
Agreement (1979), the Investment Promotion and Protection Agreement (1992), the Agreement on
Agricultural Cooperation (1999), the Tax Agreement (1999), and the Treaty on Mutual Judicial
Assistance on Crimi (2000). The Philippines has recently improved its relations and collaboration
with China on a variety of problems, building stronger and more stable connections as well as a
successful Code of Conduct with China and the rest of ASEAN. However, the average Filipino's
trust in China is negative 33, with some areas, such as Zambales and Palawan, having trust levels
at least negative 45. The average trust rating for the United States, on the other hand, is 66.

3. Who will be liable if the product sold not safe? Why?


When a consumer is hurt as a result of the use of a defective product, product liability laws
allow them to seek compensation from a variety of parties. In most circumstances, the product's
maker is solely responsible for any losses caused by a defective product. The consumer may not
even have to prove fault; all that is required is that the product was defective, that the consumer
used it properly, and that the product caused the injuries. Retailers have a responsibility to sell
products that are safe to use and will not hurt customers. Retailers, on the other hand, may argue
that they are not liable for a product since they did not design or produce it and had no means of
knowing it was defective. Retailers, on the other hand, must take steps to guarantee that the
products they sell are safe to use. As a result, they may be held accountable if a product they sold
causes injury to the consumer or to someone else who did not buy the goods.
4. Differentiate the ff:

Democratic and Totalitarianism


Democracy is a kind of government in which all citizens have an equal say in how their lives
are run. Totalitarianism, on the other hand, is a political system in which a single individual is
endowed with all powers and acknowledges no limits to his authority. The goal of totalitarianism is to
control all elements of public and private life. Political pundits frequently describe totalitarianism as a
blend of ideology and authoritarianism, characterized by the recognition of constraints on individual
citizens' decision-making powers. Totalitarianism is the rule of a single powerful individual, whereas
democracy is the rule of the people.

Collectivism and Individualism


The philosophy or practice of favoring collective cohesion over individual goals is known as
collectivism. Individualism, on the other hand, is a value or political viewpoint that emphasizes
personal individuality and freedom. Collectivism is a political philosophy that is linked to communism
since it maintains that authority should be placed in the hands of all citizens rather than just a few
individuals, such as those in the upper class. As a result, creating a framework that facilitates
shared goals is advantageous. Individualism, on the other hand, is related with liberalism, which
emphasizes individual liberty and has been acknowledged since the Enlightenment. It is also linked
to autarchism, which opposes centralized government and advocates for self-reliance and individual
Liberty.

5. Discuss the different types of legal system


The origins of civil law systems can be traced back to the Roman legal tradition. Civil law in
systems differ greatly in procedure and substantive law, therefore researching a country's civil
system should entail looking at that country's specific system of law, but they do share some
common traits. Civil law countries have extensive and regularly updated legal codes. Most crucially,
many jurisdictions, case law is a secondary source. A civil law system can be found in France and
Germany, for example.

Common law systems, while they often have statutes, rely more on precedent, judicial legal
decisions that have already been made. The common law system is adversarial rather than
investigative, with the judge presiding over a dispute between two parties. In the United States, the
system is based on common law (with the exception of Louisiana, which has a mix of civil and
common law).

Customary law systems are based on patterns of behavior (or traditions) that have become
established as legal requirements or standards of conduct within a country. Customary legal
systems' laws are typically unwritten and are frequently disseminated by elders and passed down
through generations. As a result, secondary sources are heavily used in customary law study.
Customary law practices are frequently seen in places with a mixed legal system, where they have
merged with civil or common law.

Religious legal systems are those in which the law is derived from the books or traditions of
a particular religion. Many Islamic countries have legal systems that are founded entirely or partially
on the Quran.

Mixed legal systems are those in which two or more of the preceding legal systems coexist.

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