CHAP 2-SB Reading
What two broad issues for international business can be identified when considering the political, economic, and legal environments of a country?
1. These systems raise important ethical issues that have implications for international business. 2. These systems clearly influence the attractiveness of a country as a market or investment site.
What are the three main types of legal systems in use around the world?
1. civil law 2. theocratic law 3. common law
Which continent has experienced tribal totalitarianism rule?
Africa
What is a difference between the contracts drafted in a common law framework and those in a civil law system?
Resolving contract disputes in a common law system tends to be more adversarial than in civil law systems.
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
Tribal
Property rights violation that occurs through theft or piracy is an example of ______ action.
private
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
Under a(n)______, authoritarian elements are used to attempt to deny basic political and civil liberties to individuals.
pseudo-democracy
In a theocratic law system, the law is based on
religious teachings
In a(n)______ democracy, elected officials represent the citizens and make decisions on behalf of the electorate.
representative
Public action to violate property rights exists when ______ is responsible for the action.
the government
What does individualism emphasize?
the importance of guaranteeing one's freedom and self-expression
The three main types of legal systems found around the world include common law, civil law, and ______ law.
theocratic
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.
The three broad types of economic systems include a market economy, a mixed economy and a(n)______ economy.
Command
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
Democracy
Grease payments are considered an acceptable form of a
Bribe
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.
Individualism
Kent needs to describe theocratic totalitarianism to his classmates. Which of these statements should he use?
It is a political system in which rulers govern based on religious rules and principles.
Select the correct statement about democracy and totalitarianism.
It is possible to have a democratic state in which some degree of collectivism exists.
Organized crime, such as the "Russian Mafia" that existed following the collapse of communism in Russia and extorted money from businesses is an example of ______ action.
Private
______ refers to the process of selling state-owned enterprises to private investors.
Privatization
______ often back(s) right-wing totalitarianism governments.
The military
Communism is in decline worldwide.
True
Which of the following statements about political systems is TRUE?
Typically, political systems that place a high emphasis on individualism tend to be democratic.
Which statement accurately describes a civil law system?
Unlike a common law system, a civil law system relies on detailed codes, and therefore, can be less adversarial.
In the early 20th century, communists differed from social democrats in that communists believed in
a strategy of revolutionary action.
What is the objective of a pure command economy?
allotment of resources for the overall good of society
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
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
The ______ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them.
legal
In a ______ economy, both private enterprise and some state monopolies co-exist.
mixed
Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.
philosophers and soldiers
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.
property
The legal rights regarding the use of a resource by a business or individual are known as ______ rights.
property
Governments that levy excessive taxes or require expensive permits from property holders are both examples of Blank______ action to violate property rights.
public
High levels of corruption tend to affect a nation by
reducing foreign direct investment.
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".
Under a common law system, custom refers to
the ways in which laws are applied in specific situations.
On the democracy and totalitarianism continuum______ represents the form of government in which one political party exerts absolute control over all spheres of human life.
totalitarianism
The system of government in a nation is called the ______ system.
political
The CISG establishes rules that govern contracts specifically between
sellers and buyers who have companies in different nations.
In a pure market economy, production of goods is determined by
the interaction of supply and demand.
What are the two dimensions used to assess a country's political system?
1. democratic vs. totalitarian 2. collectivism vs. individualism
Which of these intellectual property protections should Juliet, the CEO of a fast food restaurant chain, apply for to prevent competitors from copying her restaurant logo?
A trademark
What is one way high levels of corruption affect a country?
It reduces the return on investment of a business.
What statement characterizes social democrats of the early 20th century?
They believed in achieving socialism through non-violent means.
According to individualism, economic interests should be dictated by ______.
the individual
_____ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.
Intellectual
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.
In a pure______ economy, all productive activities are owned privately -- they are not owned by the state.
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
What is an example of facilitating payment under U.S. law and the Organization for Economic Cooperation and Development (OECD) convention?
Small payments that are made for the purpose of speeding up the issuance of a permit.
Carrie's professor asked her to describe democracy. Which of these statements should she use?
The pure form of democracy believes that laws and policies should be made directly by citizens.
Which statement best exemplifies a political system?
Typically, the political system of a country can be assessed by the degree to which it is democratic or totalitarian
Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.
communist
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
Compared to the United States, the piracy of computer software is______ in China.
higher
Product ______ is the area of law that holds a firm and its officers responsible for injuries caused by their product.
liability
Islamic law, a form of theocratic law, is mostly concerned with
moral behavior.
A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
patent
Natalia, a research associate at a biotechnology firm, develops a diagnostic kit for the rapid detection of malaria. In order to prevent competitors from duplicating her invention, Natalia should apply for a
patent.
A country that is ruled based on theocratic totalitarianism is governed based on
religious principles.
Compared to contracts drafted in a common law system, contracts in a civil law system
tend to be much shorter and less specific.
Which one of these individuals should apply for a copyright?
Jude, a musician who is composing his maiden album
Which Greek philosopher is credited with advocating the origins of collectivism?
Plato
Under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, the intellectual property regulations established by the World Trade Organization
oblige members to grant and enforce patents lasting at least 20 years.
The term ______ is used to stress that the political, economic, and legal systems of a country are connected.
political economy
If you adhered to the concept of individualism, you would say that individualism
stresses that the interests of the people are more important than the interests of the state.
A country under totalitarian rule would experience which two of these situations?
1. denial of civil liberties 2. censored media
The most widely practiced theocratic legal system in the modern world is ______ law.
Islamic
Lax enforcement of intellectual property rights in the computer software industry has lead to stealing of software applications. This illegal process is also known as
piracy.
In a common law system,______ refers to cases that have come before the courts in the past.
precedent
As used in the text, the term ______ refers to a resource that an individual or business legally owns.
property
Hanson Manufacturing holds legal title to the land, buildings, and equipment associated with the business. These holdings represent the company's Blank______.
property
Hanson Manufacturing holds legal title to the land, buildings, and equipment associated with the business. These holdings represent the company's ______.
property
Under the government of Vladimir Putin in Russia, elections are held for political office while there are also systems in place that limit the civil liberties of opposition groups. What type of government does this represent?
pseudo-democracy
What statement BEST defines right-wing totalitarianism?
It restricts political freedom, frequently on the grounds that it would lead to the rise of communism, but does allow some economic freedom.
The Foreign Corrupt Practices Act was established in the 1970s following the revelation that companies in ______ had bribed government officials in foreign countries as an attempt to win lucrative contracts.
The U.S.
What is an accurate depiction of Karl Marx's arguments on socialism?
Capitalists take the value created by workers for their own use.
A ______ law system is based on a detailed set of laws organized into codes.
Civil
______ refers to a political system that values the needs of society over that of an individual.
Collectivism
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
A country that bases its laws on the traditions within the country's legal history operates under a ______ law legal system.
Common
A country that bases its laws on the traditions within the country's legal history operates under a______ law legal system.
Common
According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
False
History shows that state ownership of the means of production never ran counter to the public interest.
False
To date, all major trading nations have accepted the United Nations Convention on Contracts for the International Sale of Goods.
False
Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.
False
Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?
Foreign Corrupt Practices Act (FCPA)
What are the three broad types of economic systems?
1. command economy 2. mixed economy 3. market economy
In a totalitarian country, you would find that
the ruler's decisions are not questioned by individuals.
When considering how intellectual property rights are viewed around the world, it can be said that
they are subjected to various forms of protection from country to country.
A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark
If all other things are equal, what three environments would make a country more attractive as a place to do business in?
1. democratic political institutions 2. strong protection of property rights 3. market-based economic system
What three systems make up the political economy of a country?
1. economic system 2. legal system 3. political system
Under the TRIPS agreement, the very poorest of countries have ______ to comply to the rules of the agreement.
10 Years
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 Blank______, which dates to 1883.
Paris Convention for the Protection of Industrial Property
