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how has Bata interacted with foreign political systems Question 1 Following the First world War the Austro-Hungarian empire was fragmented into Austria Czechoslovakia Hungary Romania and Yugoslavia During this period the Czechoslovakian state was conceived as a parliamentary democracy with the constitution of 1920 giving the central government a high degree of control over local government Czechoslovakia in particular saw rapid economic growth during the 192058808 brought about by foreign investment and advances in manufacturing technology The country proved particularly tempting for foreign investors such as the British French Belgian and Dutch due to low labour costs and readily available natural resources Only in the shoe industry the foreign capital played no important role Thanks to a monopoly position of Bata Works Czechoslovakia held the first place among the worlds leading shoe exporters in 1930s after overtaking Great Britain and the USA In 1938 interference by Hitler resulted in the old Slovak and Ruthenian demands for autonomy finally been granted Czechoslovakia was deprived of one third of its territory containing some of its most important industrial centres and most fertile farm-land leaving the country economically crippled Following this Bata realised his business did not have good future prospects if it were to remain in Czechoslovakia He sought to continue operations and preserve the business by moving to Canada as the country was viewed as a safer operating environment both economically and politically Bata58808 move to Canada along with one hundred of his staff and families would see the company and its workers having to adapt to operations in a different political system to Czechoslovakia the first of many adaptations they would have to make as the company expanded across the globe The relocation in Canada was a big change for Bata as the government there gives significant political power to the provinces which each have their own trade barriers This is a big contrast to Czechoslovakia where the central government
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