MGT 302: National Differences

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."

If all other things are equal, what three environments would make a country more attractive as a place to do business in?

strong protection of property rights democratic political institutions market-based economic system

In a pure market economy, production of goods is determined by

the interaction of supply and demand.

If you were asked to provide a fact about a common law system, what should you say?

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

What 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.

What two broad issues for international business can be identified when considering the political, economic, and legal environments of a country? Multiple select question.

These systems raise important ethical issues that have implications for international business. These systems clearly influence the attractiveness of a country as a market or investment site.

Which of the following statements about political systems is TRUE?

Typically, political systems that place a high emphasis on individualism tend to be democratic.

What is the objective of a pure command economy?

What is the objective of a pure command economy?

A government plans the quantity of goods and services produced as well as the prices at which they are sold in a pure economy.

command

The three broad types of economic systems include a market economy, a mixed economy and a(n) ______ economy. Multiple choice question.

command

What are the three broad types of economic systems?

command economy market economy mixed economy

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

common

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 body of law that governs oral and written agreements associated with the exchange of goods, services, money, and property is known as ______ law.

contract

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

democracy

What three systems make up the political economy of a country?

economic system legal system political system

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

flase

Samuel wrote a screenplay and he is traveling to Los Angeles next week to pitch his idea to a movie studio. The screenplay is an example of ______ property.

intellectual

property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.

intellectual

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

legal

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

liability

In a pure ______ economy, all productive activities are owned privately -- they are not owned by the state. Multiple choice question.

market

During the economic downturn of 2008-2009, the U.S. government "bailed out" AIG to prevent that financial institution from collapsing because it felt that if AIG collapsed, it would lead to serious consequences for the entire U.S. financial system. By helping out this troubled firm because it appeared vital to national interests, the U.S. government was acting as a Blank______ economy.

mixed

In a Blank______ economy, both private enterprise and some state monopolies co-exist.

mixed

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

political

The term ______ is used to stress that the political, economic, and legal systems of a country are connected.

political economy

The term ______ is used to stress that the political, economic, and legal systems of a country are connected. Multiple choice question.

political economy

Corner Coffee Inc. makes coffee pots. Last year, thirty people received serious burns when water leaked down the side of the carafe of a Corner Coffeemaker while the coffee was brewing. Even though Corner Coffee pulled this coffee pot from production, all thirty people who were injured have filed a criminal case against the company. These customers can hold the company responsible based on ______ law.

product liability

Shondra's company developed a new method for sealing medication bottles and has decided to license their patented method to the leading drug manufacturers in the United States. Shondra's company has the legal right to do this based on the ______ rights they have for this method. Multiple choice question.

property

he legal rights regarding the use of a resource by a business or individual are known as Blank______ rights

property