BGEN 360-700 International Business Chapter 2

Select the accurate description of a common law system

A common law system has a degree of flexibility that other legal systems lack

In the early 20th century, communists differed from social democrats in that communists believed in

A strategy of revolutionary action

Solar Solutions, a U.S.-based company, is planning to expand operations to a foreign country. Considering the factors that make a country attractive as a place in which to do business, which country should Solar Solutions consider for entry?

Country D, which has democratic institutions and a market-based economic system

Political systems that emphasize individualism tend to promote

Democracy

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

Democracy

Which of the following factors would make a country desirable to do business with?

Democratic political institutions, a market-based economy

Nations adopting the pure form of democracy would

Directly involve citizens in the decision making of the country

According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor

False

Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system

False

In the United States, citizens have the freedom to pursue the economic and political activities that interest them. This is an example of the philosophy of

Individualism

Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent

Intellectual

_____ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the chemical formula for a new drug

Intellectual

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

Who among the following should apply for a copyright?

Jude, a musician who is composing his maiden album

The _____ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them

Legal

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country

Legal

Product _____ is the area of law that holds a firm and its officers responsible for injuries caused by their product

Liability

In a pure _____ economy, all productive activities are owned privately—not by the state

Market

Companies wishing to pursue business opportunities in Sweden would find that while some industries are privately owned, others are state-controlled. What type of economy does this represent?

Mixed

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

Patent

Millie, a research associate at an information technology firm, develops a program that allows more than six parties to interface at the same time. In order to prevent the competition from duplicating her invention, the company should apply for a

Patent

The system of government in a nation is called the _____ system

Political

An energy company based in Houston often deals with piracy issues when exporting fuel in tankers to parts of Africa. This piracy is a form of _____ action

Private

In the last half of the twentieth century, Britain's Conservative Party sold state-owned enterprises to individual investors in order to create a free market economy. What process was Britain using to create this economy?

Privatization

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

Privatization

Josef told the management team that the company would have to find a new way to produce the Walk-A-Lot Doll because the government had recently banned "exposed component parts in toys" and the doll's walking mechanism was visible on her back. The standard set by the government is a type of

Product safety law

_____ set certain safety standards to which a manufactured good must meet

Product safety laws

_____ rights determine how a resource or economic good is owned and used

Property

In a(n) _____ democracy, elected individuals represent the citizens and make decisions on behalf of the electorate

Representative

The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced to

Resolve disputes that arise in international trade regarding which country's laws to apply

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 production of goods in a pure market economy is determined by

Supply and demand

Even though there are many state-owned businesses in China, many Western businesses feel that they should still invest in the country because

The nation is moving toward a market-based system

In a command economy, businesses are owned by

The state

A form of government in which political power is monopolized by a party, group, or individual that governs according to religious principles is called what type of totalitarianism?

Theocratic

Which characteristic is typical within a totalitarian country?

There is no questioning of the ruler's decisions

Which of the following are ways in which property rights can be violated?

Through public action, through private action

Under Vladimir Putin, the government of Russia is becoming increasingly

Totalitarian

In a country governed by a totalitarian system, you would find that

Basic civil liberties are denied to citizens

Which of the following are examples of private action and a violation of property rights?

Blackmail, theft

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

Social democrats advocate for

Achieving socialism through non-violent means

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

Karl Marx would agree that

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

A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system

Common

Until recently, what was the most common form of totalitarianism in the world?

Communist

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

_____ law is the body of law that governs the written agreements specifying the conditions under which an exchange is to occur

Contract