Chapter 2 International Buisness

What is intellectual property?

refers to property that is the product of intellectual activity, such as computer software, a screenplay, a music score, or the chemical formula for a new drug.

What are the four types of totalitarianism?

1. Communist Totalitarianism- most widespread decline in 1989 alive though in China, Laos, Vietnam, North Korea, and Cuba 2. Theocratic Totalitarianism-is found in states run by a certain group or individual that governs according to religious principles. Saudi Arabia and Iran 3. Tribal Totalitarianism-often in Africa when a political party that represents a tribe takes control of power 4. Right Wing Totalitarianism- permits some individual economic freedom, but restricts individual political freedom. The NAZIS or many Latin America countries, and in Indonesia

What is patent?

A patent grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention.

What are the other organizations that combat corruption?

Convention on Combating Bribery of Foreign Public in 1997 (OCED)

What is a command economy?

Government makes all economic decisions, supposedly for the collective good however this has not been proven. This is because of lack of incentives to drop the price and to find a better way.

What is Political Economy?

It means that the political, economic, and legal systems of a country are interdependent; as they interact and influence each other, and in doing so they affect the level of economic well-being.

What are Pseudo Democracies?

Lie between pure democracies and complete totalitarianism systems Authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties Example- Russia

What is a mixed economy?

Some sectors are privately owned, some are government owned. However it is also when governments save an industry like the United States and AIG. This is often called cash injection

What is a trademark?

are designs and names officially registered used to differentiate products

What is a copy right?

are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

What is democracy?

refers to a political system in which government is by the people, exercised either directly or through elected representatives.

What is socialism?

believe in public ownership of the means of production for the common good of society. Karl Marx argued that only a few benefit in a capitalist society

What did communist believe?

believed that socialism could be achieved only through violent revolutions and totalitarian dictatorship. This reached high point during the late 1970's.

What is collectivism?

refers to a political system that stresses the primacy of collective goals over individual goals.

What did social democrats believe?

committed themselves to achieve socialism by democratic means

What are the three types of legal systems?

common law- is based on tradition, precedent, and custom. civic law- is based on a set of laws organized into codes. Judges rely on these details only the power to apply the law. theocratic law- law system based on religious teachings. Many muslim countries have a blend between this and either common or civic. Concerned with moral behavior.

What is a contract?

document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

What is a market economy?

everything is privately owned. However, monopolies can form so in the United States we put things like anti trust laws in place.

What are grease payments or speed money?

exceptions within the contract that allow for governments to secure the performance of a routine governmental action.

What three things does corruption reduce?

foreign direct investment, level of international trade, and economic growth

What happens if they don't ratify to the CISG?

if there is a dispute they can go to an arbritation court such as the international court of arbitration of the international chamber of commerce. In Paris.

What is the foreign corrupt practices Act?(FCPA)

is U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions. in response to U.S companies bribing foreign governments for deals in the 1970's.

What is totalitarianism?

is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

What is the United Nations Convention of Contract for the International Sale of Goods? (CISG)

is a set of rules governing aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations. Two Big countries have not ratified to this the United Kingdom and India

What is individualism? What two tenets is it built on?

is an emphasis on the importance of guaranteeing individual freedom and self-expression. 1. Guarantee of individual freedom and self-expression 2. Welfare of society best served by letting people pursue their own economic self-interest * Adam Smith in Wealth of Nations big advocate and Decleration of independence

What is paris convention for the protection of industrial policy?

is an international agreement to protect intellectual property

What is the World Intellectual Property organization?

is an international organization whose members sign treaties to agree to protect intellectual property.

What is a contract law?

is the body of law that governs contract enforcement.

When did communism retreat?

it was by the mid 1990's.

When did social democracies decline?

late 1970's because the state owned industries were inefficient from lack of competition

What do Property rights refer to? What two ways can they be violated?

refer to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. 1. Private Action 2. Public Action Many are violated in countries even though there is written law protecting them.

What is private action?

refers to theft, piracy, blackmail, and the like by private individuals or groups.

What is a legal system?

rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained.

What is privatization?

selling state owned industries to private companies

What is political system? What are the two ways they are accessed?

the system of government in a nation. 1. emphasis on collectivism vs individualism 2.degree to which they are democratic or totalitarian

What is public action?

to violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders.