Practice Questions 2
Many of the world's larger tending nations, including Japan and the UK, have not ratified the UN Convention on Contracts for the International Sale of Goods (CIGS)
T
Modern socialists trace their intellectual roots to Karl Marx, although socialist thought clearly predates Marx
T
Patents, copyrights, and trademarks establish ownership rights over intellectual property
T
Property rights can be violated in two ways- through private action and through public action
T
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
T
When collectivism is emphasized, an individual's right to do something may be restricted on the groups that it runs counter to "the good of society"
T
in a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more
T
in mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests
T
most modern democratic states practice representative democracy
T
property rights refer to 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
T
the number of command economies has fallen dramatically since the demise of communism in the late 1980s
T
when law courts interpret common law, they do so with regard to tradition, precedent, and custom
T
in a ___ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning
mixed
___ refers to a state where political power is monopolized by a part, group, or individual that governs according to religious principles
theocratic totalitariansim
Not true of the legal systems in countries
they are almost the same for all countries
Judges in a common law system have the power to interpret the law so that it applies to the unique circumstances of an individual case
T
Contracts under a civil law system tend to be very detailed with all contingencies spelled out
F
In a totalitarian country, there are safeguards to protect an individual's right to freedom of expression, opinion, and organization
F
Patents discourage companies from committing themselves to extensive basic research
F
Product liability can be much lower if a product does not conform to required safety standards
F
Product liability sets certain safety standards to which a product must adhere
F
The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based
F
The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship
F
The two dimensions, according to which the political systems can be assessed, collectivism-individualism and democratic-totalitarian are independent of each other
F
a nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries
F
judges under a civil law system have more flexibility that those under a common law system
F
the Foreign Corrupt-Practices Act does not allow for grease payments
F
interdependent political, economic, and legal systems of a country make up its
Political economy
In the 1970s, the US passed the Foreign Corrupt Practices Act 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
T
It is possible to have a democratic political system that emphasizes a mix of collectivism and individualism
T
A theocratic law system is one in which the law is based on religious teachings
T
In an early individualist society, the welfare of society is best served by letting people pursue their own economic self-interest
T
In practical terms, individualism translates into an advocacy for democratic political systems and market economies
T
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
under the ___, cases are judges with reference to three characteristics: tradition, precedent, and custom
common law system
people's right to protest on issues of accountability in public expenditure would be possible in a ___ political set-up
democratic
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
Feature of a democracy
governance by people or elected representatives
the tenet of ___ is that the welfare of society is best served by letting people pursue their own economic self-interest
individualism
totalitarianism
is a form of government in which one person or political party exercises absolute control over all spheres of human life
antitrust laws in the US are designed to
outlaw monopolies
A ___ grants the inventor of a new product or process exclusive rights for a define period of time to the manufacturer, use, or sale of that invention
patent
Area of international trade 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
In several western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support led to
privatization
in a pure market economy
production is determined by the interaction of supply and demand
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
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
A civil law system tends to be less adversarial than a common law system, since ___
the judges' decisions are based on detailed legal codes