International business Chapter 2

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.

What condition must be present to create an ideal representative democracy?

A nonpolitical state bureaucracy

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

Which countries have experienced tribal totalitarianism rule?

African

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

All businesses are owned by the state.

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

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 three broad types of economic systems include a market economy, a mixed economy and a(n) _____ economy.

Command

What are the three broad types of economic systems?

Command, Mixed, Market

Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.

Communist

______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.

Democracy

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

True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.

False

______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.

Individualism

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

Individualism

______ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.

Intellectual

What is an accurate description of intellectual property laws?

Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.

Javabucks in China This short video clip deals with the legal issues of a hypothetical foreign-owned coffee shop opening in China and facing trademark violation issues from a Chinese competitor. In a legal sense, the term property refers to a resource over which an individual or business holds a legal title, that is, a resource that it owns. Intellectual property refers to property that is the product of intellectual activity. Patents, copyrights, and trademarks establish ownership rights over intellectual property.

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 organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the - World Intellectual Property Organization In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was - "Clearly Malicious"

The most widely practiced theocratic legal system in the modern world is ______ law.

Islamic

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.

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 one of these individuals should apply for a copyright?

Jude, a musician who is composing his maiden album

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

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

Peter, 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 _________.

Patent.

Which Greek philosopher is credited with advocating the origins of collectivism?

Plato

What three systems make up the political economy of a country?

Political system, Economic system, Legal system

______ refers to the process of selling state-owned enterprises to private investors.

Privatization

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

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

Differences in Political Systems Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian. These dimensions are interrelated and may share certain characteristics.

Right-wing totalitarianism - Germany in 1930s Tribal Totalitarianism - Kenya Psudo Democracy - Russia Communist Totalitarianism - China Representative Democracy - United States Theocratic Totalitarianism - Saudi Arabia

_____ often back(s) right-wing totalitarianism governments.

The military

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.

What statement characterizes social democrats?

They believed in achieving socialism through non-violent means.

______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.

Tribal

True or false: 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.

The common law system is

based on tradition, precedent, and custom.

A country under totalitarian rule would experience which two of these situations?

censored media & denial of civil liberties

A _____ law system is based on a detailed set of laws organized into codes.

civil

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

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

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

Aristotle (384- 322 BC) argued in favor of individualism by noting that

diversity and private ownership are beneficial to society.

The role of the government in a market economy involves

encouraging vigorous free and fair competition among private producers.

Compared to the United States, the piracy of computer software is _____ in China.

higer

Michael 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 pure ______ economy, all productive activities are owned privately -- not by the state.

market

In a ______ economy, both private enterprise and some state monopoly co-exist.

mixed

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

nation with a market-based economic system

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

patent

Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.

philosophers and soldiers

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

The system of government in a nation is called the ______ system.

political

The term ______ is used to stress that the political, economic, and legal systems of a country are connected

political economy

In a common law system, ______ refers to cases that have come before the courts in the past.

precedent

According to Aristotle's philosophy on individualism,

private property receives greater care compared to communal property.

A country that is ruled based on theocratic totalitarianism is governed based on

religious principles.

In a theocratic law system, the law is based on

religious teachings.

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

social democrats

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.

What does individualism emphasize?

the importance of guaranteeing one's freedom and self-expression

According to individualism, 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.

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

theocratic

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

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

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

Contracts drafted under a common law framework tend to be

very detailed with contingencies spelled out.