Chapter 2 - National Differences in Political, Economic, and Legal Systems

In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was

"clearly malicious".

Which of the following is a more attractive place to do business?

A nation with a market-based economic system

Which of these is a characteristic of a pure command economy?

All businesses are owned by the state.

________ refers to a philosophy that a person should have freedom in his or her economic and political pursuits.

Individualism

Which of the following is a feature of right-wing totalitarianism?

Provision of partial individual economic freedom along with restricted individual political freedom.

________ is the extortion of income or resources of property holders by public officials such as politicians and government bureaucrats.

Public action

Based on the information on political economy in the text and the case on Venezuela above, which statement best characterizes the situation in Venezuela?

There is probably a high level of corruption within the government.

Which of the following statements is true about trademarks?

Trademarks are designs and names by which businesses differentiate their products.

The organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the

World Intellectual Property Organization.

The common law system is

based on tradition, precedent, and custom.

Which of the following philosophies can be traced back to the ancient Greek philosopher Plato?

collectivism

Historically, command economies were found in ________ countries, where collectivist goals were given priority over individual goals.

communist

Using the information on political economy in your text and the case above, how would you characterize Venezuela's political economy under President Hugo Chávez?

communist totalitarian

The political system in Venezuela reflects the ideals of

communist totalitarianism

The role of the government in a market economy involves

encouraging vigorous free and fair competition among private producers.

A civil law system tends to be more adversarial than a common law system.

false

A common feature of many right-wing dictatorships is that they support socialist or communist ideas.

false

In a command economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

false

Since the demise of communism in the late 1980s, the number of command economies has risen dramatically.

false

Before Hugo Chavez took power in 1999, what type of economic system was in place in in Venezuela?

mixed

How can Venezuela's economic system best be described during Hugo Chavez's years as president?

mixed

Hugo Chavez's move to nationalize troubled firms is consistent with a

mixed economy

Venezuela's economic system can best be described as a

mixed economy

In just a few years, thanks to the policies and actions of its undemocratic and authoritarian economy, Venezuela has gone from being a prosperous country to a nation with widespread poverty. We use the term ________ to indicate that a country's political, economic, and legal system are interdependent, and influence the country's level of economic well-being.

political economy

The benefits, costs, and risks associated with doing business in a country are a function of that country's

political, economic, and legal systems.

Intellectual property rights are intended to

protect original ideas/works

The philosophy behind intellectual property rights is to

reward the creator of an idea.

The ________ committed themselves to achieving socialism without resorting to violent revolution and dictatorship.

social democrats

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system.

theocratic

In a market economy, a supply restriction occurs when a single firm monopolizes a market.

true

In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats.

true

Contracts drafted under a common law framework tend to be

very detailed with contingencies spelled out.

For companies, Venezuela

would likely be considered a highly risky destination for doing business.