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3. Governments and Citizens (1)

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Governments
and Citizens
DR. NELIA M. PELIPADA
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Introduction
 The dynamics of governance do
not play out solely within the
boundaries of nation-states.
 Max
Max Weber
Weber'
definition
of
the state as a human community
that
successfully
claims
the
monopoly of the legitimate use of
physical force within a given
territory (Weber, 1946).
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Definition of State
 A State is an independent, sovereign government exercising control
over a certain spatially defined and bounded area, whose borders
are usually clearly defined and internationally recognized by other
states.
 States are tied to territory
 States have bureaucracies staffed by state’s own personnel
 States
monopolize
(sovereign)
certain
functions
within
its
territory
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Definition of Nation
 A nation is a stable community of people formed on
the basis of a common language, territory,
history,
ethnicity,
or
psychological
make-up
manifested in a common culture. A nation is more
overtly political than an ethnic group;
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Difference between Nation and State

A state is specifically a political and geopolitical entity, while a
nation is a cultural and ethnic one.
STATE
• Elements
NATION
• Territory is not essential
• Fixed Territory
• Common political aspirations,
social cultural and emotional unity
• Sovereignty
• Moral, emotional and spiritual
power
• Political organization
• Police power
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Nation-States and Sovereignty

A nation-state is a type of state that conjoins the political entity of
a state to the cultural entity of a nation, from which it aims to
derive its political legitimacy to rule and potentially its status as a
sovereign state

The term “nation-state” implies that the two coincide, in that a
state has chosen to adopt and endorse a specific cultural group
as associated with it. The nation-state concept can be compared
and contrasted with that of the multinational state, city-state,
empire, confederation, and other state formations with which it
may overlap. The key distinction is the identification of a people
with a polity in the nation-state.
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Political Risk
 The risk of loss when investing in a given
country caused by changes in a country's
political structure or policies, such as tax
laws, tariffs, expropriation of assets, or
restriction in repatriation of profits.
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Political Risk

Non-economic risk (Meyer 1985, Ciarrapico 1984);

Unwanted government interference with business operations
(Eiteman and Stonehill 1973, Aliber 1975, Henisz and Zelner 2010);

The probability of disruption of the operations of MNEs by political
forces or events (Root 1972, Brewers 1981, Jodice 1984, MIGA
2010);

Discontinuities in the business environment deriving from political
change, which have the potential to affect the profits or the
objectives of a firm (Robock 1971, Thunell 1977, Micallef 1982);

Substantially equated to political instability and radical political
change in the host country (Green 1974, Thunell 1977 ).
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International Law
 Is the set of rules, norms, and standards generally
accepted in relations between nations.
 It establishes normative guidelines and a common
conceptual framework to guide states across a broad
range of domains, including war, diplomacy, trade,
and human rights.
 International law allows for the practice of stable,
consistent, and organized international relations.
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