IBUS CH2
What are the three broad types of economic systems?
market economy mixed economy command economy
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 ____ economy.
mixed
Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.
communist
What are the two dimensions used to assess a country's political system?
democratic vs. totalitarian collectivism vs. individualism
A country under totalitarian rule would experience which two of these situations?
denial of civil liberties censored media
A theocratic law system is one in which the law is based on
religious teachings
In a(n) ______ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate.
representative
In a(n) ______ democracy, elected representatives represent the citizens and make decisions on behalf of the electorate.
representative
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".
the cisg establishes rules that govern contracts specifically between
sellers and buyers who have companies in dfferent nations.
under the TRIPS agreement, the very poorest of countries have _____ to comply to the rules of the agreement.
10 years
jarek has been asked to give a characteristic of a command economy to the class. What should he say?
Command economies do not make innovation a priority and, therefore, tend to stagnate.
According to many business executives, what makes American businesses less competitive in the global marketplace?
High costs of liability insurance in the United States
High levels of corruption tend to affect a nation by
Reducing foreign direct investment
One way to describe collectivism is to say that it
believes that welfare of the society is best served by a governing body dictating what is in the society's best interest.
Grease payments are considered an acceptable form of a
bribe
In a ______ economy, both private enterprise and some state monopoly co-exist.
mixed
corner coffee makes coffee pots. Last year, thirty people received serious burns when water leaked down the side of the carafe of a Callie Coffeemaker while the coffee was brewing. Even though Callie 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 liabilty
If you needed to describe 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.
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
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.
what staement characterizes social democrats of the early 20th century?
they believed in achieving socialism through non-violent means.
which continent has experienced tribal totalitarianism rule?
africa
When product safety laws are more stringent in a firm's home country than in a foreign country the home country is entering, the most ethical thing to do is to follow _____ standards.
home-country
Product ______ is the area of law that that holds a firm and its officers responsible for injuries caused by their product.
liability
Antitrust laws are put into place in a market economy in order to
limit monopolies.
_____ often back(s) right-wing totalitarianism governments.
The military
What two broad issues for international business can be identified when considering the political, economic, and legal environments of a country?
These systems clearly influence the attractiveness of a country as a market or investment site. These systems raise important ethical issues that have implications for international business.
In the early 20th century, communists differed from social democrats in that communists believed in
a strategy of revolutionary action.
In the early 20th century, communists differed from social democrats in that communists believed in?
a strategy of revolutionary action.
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 the objective of a pure command economy?
allotment of resources for the overall good of society
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
______ 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
What is an accurate description of intellectual property laws?
ntellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.
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.
A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
patent
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
As used in the text, the term "______" refers to a resource that an individual or business legally owns.
property
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 market-based economic system democratic political institutions
Compared to contracts drafted in a common law system, contracts in a civil law system
tend to be much shorter and less specific
under a common law system, custom refers to
the ways in which laws are applied in specific situations.
What are the three main types of legal systems found around the world include common law, civil law, and _____ law.
theocratic
When discussing a common law system, a country's legal history is known as ______.
tradition
True or false: Patents provide a reassurance for companies to pursue extensive research projects.
true
The communist version of socialism reached its peak in the _____ and by the _____ it was in a state of collapse.
1970s; 1990s
What condition must be present to create an ideal representative democracy?
A nonpolitical state bureaucracy
What is an accurate depiction of Karl Marx's arguments on socialism?
Capitalists take the value created by workers for their own use.
______ refers to a political system that values the needs of society over that of an individual.
Collectivism
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 ______, which dates to 1883.
Paris Convention for the Protection of Industrial Property
A country that is ruled based on theocratic totalitarianism is governed based on
Religious principles.
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
If you were asked to provide a fact about a common law system, which of the following should you use?
A common law system has a degree of flexibility that other legal systems lack.
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
Democracy
Which one of these individuals should apply for a copyright?
Jude, a musician who is composing his maiden album
The most widely practiced theocratic legal system in the modern world is ______ law.
Islamic
Which 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.
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.
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.
Which Greek philosopher is credited with advocating the origins of collectivism?
Plato
______ refers to the process of selling state-owned enterprises to private investors.
Privatization
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.
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
Tribal
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 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.
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.
United States
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.
a _____ law system is based on a detailed set of laws organized into codes.
civil
what are the three main types of legal systems in use arounf the world?
civil law common law theocratic law
The Cold War is an example of how _____ can shape the course of history.
collectivism vs. individualism
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
command
in a ______ economy, dynamism and innovation are absent because private ownership does not exist and there is no incentive for individuals to look for a better way to serve customers.
command
A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.
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
The philosopher Aristotle argued in favor of individualism when he said that
diversity and private ownership are beneficial to society.
In a market economy, the government's role is to
encourage free and fair competition and minimize restrictive business practices.
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
True or 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 officail to obtain or maintain business over which that foreign official has authority.
foriegn corrupr practices act
The purpose of a(n) ______ payment is to facilitate the performance of duties that a government has already obligated itself to do.
grease
Following World War II, some nations having social democratic governments nationalized some private companies and transformed them into state-owned enterprises to be "run for the public good." This practice was most notable in _____.
great britain
_____ refers to a philosphy that promotes the free exercise of one's goals and desires in economic and political pursuits.
individualism
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
select the correct statement about democracy and totalitarianism.
it is possible to have a democratic state in which some degree of collectivism exists.
What is one way high levels of corruption affect a country?
it reduces the return on investment of a business.
In a pure ______ economy, all productive activities are owned privately -- not by the state.
market
natalia, a research associate at a biotechnology firm, develops a diagnostic kit for the rapid detection of malaria. In order to prevent his competitors from duplicating his invention, Peter should apply for a
patant
Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.
philosophers and soldiers
the system of government is a nation called the ______ system.
politcal
the term ______ is used to stress that the political, economic, and legal systems of a country are connected.
political economy
What three systems make up the political economy of a country?
political system legal system economic system
In a common law system, ______ refers to cases that have come before the courts in the past.
precedent
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
Property rights violation that occurs through theft or piracy is an example of _____ action.
private
Kent Manufacturing holds legal title to the land, buildings, and equipment associated with the business. These holdings represent the company's ______.
property
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. Sharon'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
the legal rights regarding the use of a resource by business or individual are known as______ rights.
property
Under a(n) _____, authoritarian elements are used to attempt to deny basic political and civil liberties to individuals.
pseudo-democracy
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
Governments that levy excessive taxes or require expensive permits from property holders are both examples of ______ action.
public
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.
according to the indivualism, economic interests should be dictated by______.
the individual
In a pure market economy, production of goods is determined by
the interaction of supply and demand.
In a totalitarian country, you would find that
the ruler's decisions are not questioned by individuals.
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
A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark
communism is in decline worldwide
true
the concept of individualism had significant influence on the american colonies as they fought for independence from great britain.
true
To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards. What is one of those safeguards?
universal adult suffrage
