GE-2

It is not possible to have democratic societies that emphasize a mix of collectivism and individualism.

False

Judges in a civil law system have the power to interpret the law, whereas judges in a common law system have the power only to apply the law.

False

The philosophy behind product safety laws is to reward the originator of a new invention, book, musical record, clothes design, restaurant chain, and the like, for his or her idea and effort.

False

Which of the following is most likely to be the result of a country having lax intellectual property laws?

Firms will be reluctant to enter into such a country.

Which of the following is true about individualism?

In individualism, private ownerships are desirable.

Which of the following political systems is most likely to advocate democratic political systems and free market economics?

Individualism

Which of the following is true about the common law system?

Judges in a common law system have the power to interpret the common law so that it applies to the unique circumstances of an individual case.

Right-wing totalitarianism generally permits some individual economic freedom but restricts individual political freedom.

True

The political, economic, and legal systems of a country raise important ethical issues that have implications for the practice of international business.

True

In Nerumbia, all businesses are owned by the state. The Nerumbian government plans production, fixes commodity price, and also gives directions on investments to ensure they benefit the nation as a whole and not only a few individuals. Nerumbia has adopted a _____ economy.

command

The product liability laws are established to protect the:

consumers in case a product causes injury, death, or damage.

In a pure command economy, the prices at which goods and services are sold are planned by the:

government

In countries with a market economy:

production is determined by the interaction of supply and demand.

Contracts for International Sale of Goods (CIGS) was introduced to:

resolve disputes that arise in international trade regarding which country's laws to apply.

A form of government where political power is monopolized by a party, group, or individual that governs according to religious principles is called _____ totalitarianism

theocratic