The system of government in a nation defined as political system which divided the 200 plus world entities into 2 dimensions that include the degree of collectivism versus individualism and the degree of democracy versus totalitarianism. More practically, individuals would be tied together to achieve the common or collective goals in the high context country, like South Korea, Japan, those people focus on the benefits of society and long-term relationship; individualism means democratic political systems and free market economies like Americans have free rights to vote in election. Myanmar, North Korea act as the totalitarianism that government absolutely controlled by one person or political party. Whereas, China exist the grey area that it has been a move toward greater individual free market economies, but the government is still a totalitarian dictatorship.
If the political systems are high stable, the company would be decentralized; otherwise, the company would concentrate in the low stable situation. Although the political systems in say Japan (i.e. change in 3 prime ministers since 2007) is relatively unstable as compared to that of other Asian countries like Singapore, the Japanese government is more open in terms of local market entrance of multinational companies.