International Business TB Chapter 2

modern socialism has been popularized largely through the work of _____

Karl Marx

which of the following is an example of intellectual property

a music score

who was the author of The Wealth of Nations in which it is stated that an individual who intends his own gain is led by an invisible hand to promote an end that has not part of his intention

adam smith

which of the following is a safeguard that representative democracies use to ensure that their elected officials are held responsible for their actions

an individual's right to freedom of expression, opinion, and organization

_____ argued that individual diversity and private ownership are undesirable

aristotle

the ____ associated with doing business in a country are a function of that country's political, economic, and legal systems

benefits, costs, and risks

a law system that is based on a detailed set of laws organized into codes

civil

a ______ system is based on a very detailed set of laws organized into codes

civil law

a political system that prioritizes the needs of the society over individual freedoms is called

collectivism

when ____ is emphasized and individual's right to do something may be restricted on the grounds that it runs counter to "the good of society"

collectivism

in a(n) _____ economy the government plans the goods and services that a country produces the quantity in which they are produced and the prices at which they are sold

command

judges in a(n) ____ have the power to interpret the law so that it applies to the unique circumstances of an individual case

common law system

under the ____, cases are judged with reference to 3 characteristics: tradition, precedent, and custom

common law system

the ____ believed that socialism could be achieved only through violent revolution and totalitarian dictatorship

communists

the _____ believed that socialism could be achieved only through violent revolution and totalitarian dictatorship

communists

which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

copyrights

one key components of a country's legal system is

defining the rights and obligations of those involved in business transactions

peoples' right to protest on issues of accountability in public expenditure would be possible in a ____ political set-up

democratic

Plato ____, he believed that society should be stratified into classes, with those best suited to rule

did not equate collectivism with equality

a nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries

false

contracts under a civil law system tend to be very detailed with all contingencies spelled out

false

democracy is a form of government that prohibits opposing political parties

false

in a totalitarian country, there are safeguards to protect an individual's right to freedom of expression, opinion, and organization

false

judges under a civil law system have more flexibility than those under a common law system

false

patents discourage companies from committing themselves to extensive basic research

false

product liability can be much lower if a product does not conform to required safety standards

false

product liability sets certain safety standards to which a product must adhere

false

the central message of collectivism in that individual economic and political freedoms are the ground rules on which a society should be based

false

the communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship

false

the foreign corrupt practices act does not allow for grease payments

false

the objective of the government in a command economy is to encourage free and fair competition between private producers

false

the trade-related aspects of intellectual property rights, attempts to reduce intellectual property protections to enhance trade

false

to facilitate international business, property rights are defined in a consistent way across countries

false

The ___ makes it illegal for American companies to bribe a foreign in order to obtain or maintain business over which that foreign official has authority, and requires all publicly traded companies to keep detailed records that would allow determining whether a violation of the act has occurred

foreign corrupt practices act

which of the following is a feature of a democracy

governance by people or elected representatives

a common law system is different from a civil law system because

in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law

the tenent of _____ is that the welfare of society is best served by letting people pursue their own economic self-interest

individualism

which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?

individualism

which of the following statements about individualism is true

individualism advocates for a democratic political system

in a(n) ___ society, the welfare of society is best served by letting people pursue their own economic self-interest

individualist

totalitarianism

is a form of government in which one person or political party exercises absolute control over all spheres of human life

the most widely practiced theocratic legal system in the world today

islamic

which of the following is the most widely practiced theocratic legal system in the world today?

islamic law

which of the following statements about the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement is true?

it obliged WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years

a civil law system tends to be less adversarial than a common law system because the

judges' decisions are based on detailed legal codes

modern socialists trade their intellectual roots to ____, although socialists thought clearly predates this individual

karl marx

an economy in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a ________

market economy

in a _____, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more

market economy

in 2008, the US government took an 80% stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?

mixed

in a ____ economy, cetain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning

mixed

in which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests

mixed economies

antitrust laws in the US are designed to:

outlaw monopolies

the TRIPS agreement was designed to:

oversee a much stricter enforcement of intellectual property regulations

_____ are established through patents, copyrights, and trademarks

ownership rights over intellectual property

in the 1970s, the united states _____ which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred

passed the foreign corrupt practices act

a ____ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that intervention

patent

the research and development division if a company has recently designed a new coffee vending machine that is likely to sell vert well in the market,. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of their product and to protect its product, it is now seeking a _____

patent

interdependent political, economic, and legal systems of a country make up its:

political economy

the term ____ stresses that the political, economic, and legal systems of a country are interdependent

political economy

in common law, ____ refers to cases that have come before the courts in the past

precedent

which of the following areas of international trade is regulated by the foreign corrupt practices act?

preventing bribery and unethical acts in the conduct of international business

in Russia, in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the russian mafia to demand "protection money" from business owners. any business owner who rebelled had to face violent retribution. this violation of property rights exemplifies

private action

the abolition of _____ in a command economy means there is no incentive for individuals to look for better ways to serve consumer needs

private ownership

in several western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to ____

privatization

Safety standards to which a product must adhere are set by

product safety laws

in a pure market economy:

production is determined by the interaction of supply and demand

_____ is the collective term for the legal rights relating to the use of which a resource is put and over the use made of any income that may be derived from that resource

property rights

the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource

property rights

the term used to describe a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties

pseudo-democracies

violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called _____

public action

a theocratic law system is one in which the law is based on

religious teachings

in response to increased demand, what is a monopolist likely to do?

restrict output and let prices rise

which of the following is true of criminal liability laws

results in fines or imprisonment

______ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism

right-wing totalitarianism

which system of government generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism

right-wing totalitarianism

which of the following is a reason that command economies tend to stagnate

the abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs

private action refers to

theft, piracy, blackmail, and the like by private individuals or groups

______ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles

theocratic totalitarianism

which of the following statements about the legal systems of countries is true

they can affect the attractiveness of a country as an investment site or market

systems that emphasize collectivism tend toward _____

totalitarianism

design and names by which merchants or manufacturers designated and differentiate their products are known as

trademarks

_____ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power

tribal totalitarianism

a theocratic law system is one in which the law is based on religious teachings

true

in mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests

true

many of the world's larger trading nations, including india and the united kingdom have not ratified the united nations convention on contracts for the international sale of goods (CISG)

true

most modern democratic states practice representative democracy

true

patents, copyrights, and trademarks establish ownership rights over intellectual property

true

property rights can be violated in two ways- through private action and through public action

true

the cold war was, in many respects, a war between collectivism and individualism

true

the number of command economies has fallen dramatically since the demise of communism in the late 1980s

true

the parties to an agreement normally resort to contract law when one party feels the other has violated either the letter or the spirit of an agreement

true

the political systems of a country raise ethical issues that have implications for the practice of international business

true

the _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations

united nations convention on contracts for the international sale of goods (CIGS)

although many countries have stringent intellectual property regulations on their books, the enforcement of these regulations has often been lax. This has been the case even among many of the 185 countries that are now members of the ____ , all of which have signed international treaties designed to protect intellectual property

world intellectual property organization