Political-Legal, Socio-Cultural, and Economic Environment

2 The Political and Legal Environments/Structures of the Home and Global The US has a stable and predictable political system where democracy and respect for human rights and freedoms are highly valued. Public participation is encouraged to give the citizens a say in the government's policies (Hofstede, 2001). Elections are always considered free, transparent, and fair, implying there is little worry about political violence.

Legal The US legal structure is split into state and federal. Each state has its laws that govern its affairs. State laws mainly regulate business companies, although federal laws also apply based on the nature of the business. The US upholds constitutionalism in handling local and foreign businesses (Hofstede, 2001). The country is also known for its strong protection of Intellectual Property Rights. The judiciary is independent of the meddling of the executive arm, and it practices transparency in the prosecution of cases. The US legal system is more secular and does not emphasize religious correctness.

Internationally, each country has its own political and legal system that contrasts with the US's. In Saudi Arabia, the political system is monarchical, which guarantees political stability because locals embrace it as their ideal political system. However, unlike in the US, the state restricts human rights and freedoms. Freedoms of speech and association are highly controlled.

Saudi Arabia has a unitary constitution, making it easier for foreign businesses to trade (Hofstede, 2001). However, the executive controls the Saudi Arabian judiciary compared to the US. Moreover, the Saudi Arabian legal system is embedded in Islamic values and norms to emphasize religious correctness.

The Socio-Culture of the Domestic and Global Environments