Chapter 2 International Business

Which statement BEST describes a totalitarian system?

It is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life.

Who among the following should apply for a copyright? Manuel, an engineer, who is building a supersonic jet Sun-Jun, a scientist, who is formulating a new pharmaceutical drug Amanda, an entrepreneur, who owns a chain of department stores Jude, a musician, who is composing his maiden album

Jude, a musician, who is composing his maiden album

Companies wishing to pursue business opportunities in Sweden would find that while some industries are privately owned, others are state-controlled. What type of economy does this represent?

Mixed

In the last half of the twentieth century, Britain's Conservative Party sold state-owned enterprises to individual investors in order to create a free market economy. What process was Britain using to create this economy?

Privatization

______ refers to the process of selling state-owned enterprises to private investors.

Privatization

______ set certain safety standards to which a manufactured good must meet.

Product safety laws

______ rights determine how a resource or economic good is owned and used.

Property

Karl Marx would agree that _____.

capitalists take the value created by workers for their own use.

A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.

common

A ______ refers to a legal right that enables the creator of an original work the right to publish and distribute their work as they see fit.

copyright

Political systems that emphasize individualism tend to promote _____.

democracy

Nations adopting the pure form of democracy would

directly involve citizens in the decision making of the country.

The philosopher Aristotle argued in favor of individualism when he said that

diversity and private ownership are beneficial to society.

Theocratic totalitarianism is described as a political system

in which rulers govern based on religious rules and principles.

Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.

intellectual

The ______ system of a country refers to the rules, or laws that regulate behavior along with the system that enforces them.

legal

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country.

legal

In a pure ______ economy, all productive activities are owned privately—not by the state.

market

The _____ often back(s) right-wing totalitarianism governments.

military

In a ______ economy, both private enterprise and state ownership co-exist.

mixed

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

patent

Millie, a research associate at an information technology firm, develops a program that allows more than six parties to interface at the same time. In order to prevent the competition from duplicating her invention, the company should apply for a

patent

The system of government in a nation is called the _____ system.

political

The term ______ refers to the interconnection of the political, economic, and legal systems of a country.

political economy

In a nation where right-wing totalitarianism is present, you would find that

political freedom is restricted, frequently on the grounds that it would lead to the rise of communism.

An energy company based in Houston often deals with piracy issues when exporting fuel in tankers to parts of Africa. This piracy is a form of _____ action.

private

Levying excessive taxes or requiring expensive permits from property holders are both examples of ______ action.

public

Collectivism refers to a political system that

restricts an individual's right to do something on the grounds that it runs counter to the "good of society".

When describing intellectual property rights, it can be said that they are

subjected to various forms of protection from country to country.

The production of goods in a pure market economy is determined by

supply and demand.

Even though there are many state-owned businesses in China, many Western businesses feel that they should still invest in the country because ______.

the nation is moving toward a market-based system

In a command economy, businesses are owned by _____.

the state

A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.

trademark

Which of the following are examples of private action and a violation of property rights? (Check all that apply.)

Blackmail Theft

______ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the chemical formula for a new drug.

Intellectual

What should Stephen, the CEO of an athletic clothing company, obtain to prevent competitors from copying the company logo?

A trademark

______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.

Individualism

Which of these statements would Aristotle agree with based on his arguments for individualism?

Private property receives greater care compared to communal property.

A nation that fosters individualism would

stress that the interests of the people are more important than the interests of the state.

In a(n) ______ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate.

representative

Under Vladimir Putin, the government of Russia is becoming increasingly _____.

totalitarian

Select the accurate statement about intellectual property laws. Intellectual property regulations are uniform across the globe. Intellectual property laws do not include patents and copyrights. Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things. Intellectual property laws strongly discourage firms from undertaking expensive and time-consuming basic research.

Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.

The newspaper story said that the city council was corrupt and had recently taken over three businesses without compensating the owners for them. This type of corruption is an example of _____.

public action

Select the accurate description of a common law system.

A common law system has a degree of flexibility that other legal systems lack.

______ refers to a political system that values the needs of society over that of an individual.

Collectivism

Until recently, what was the most common form of totalitarianism in the world?

Communist

______ law is the body of law that governs the written agreements specifying the conditions under which an exchange is to occur.

Contract

______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.

Democracy

Which of the following factors would make a country desirable to do business with? (Check all that apply.)

Democratic political institutions A market-based economy

Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?

FCPA

True or False: According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.

False

True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.

False

What is one of the tenets of individualism?

The welfare of society is best served by allowing individuals to follow their own economic self-interest.

Which characteristic is typical within a totalitarian country?

There is no questioning of the ruler's decisions.

Which of the following are ways in which property rights can be violated? (Check all that apply.)

Through private action Through public action

______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.

Tribal

In the early 20th century, communists differed from social democrats in that communists believed in

a strategy of revolutionary action.

Social democrats advocate for _____.

achieving socialism through non-violent means.

What is the objective of a pure command economy?

allotment of resources for the overall good of society

In a country governed by a totalitarian system, you would find that

basic civil liberties are denied to citizens.

The members of the World Intellectual Property Organization have signed international treaties designed to protect intellectual property, including the oldest such treaty known as the ______, which dates to 1883.

Paris Convention for the Protection of Industrial Property

The United States passed the Foreign Corrupt Practices Act in response to _______ issues between U.S. companies and foreign countries.

bribery

A(n) ______ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties.

contract

The Declaration of Independence is an ideal example of the tenets of _____, which emphasize the importance of individual freedoms.

individualism

Product ______ is the area of law that holds a firm and its officers responsible for injuries caused by their product.

liability

Intellectual property laws are said to

stimulate innovation and creative work.