Chapter 2 Quiz

TimeForce, 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 TimeForce consider for entry?

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

which of these companies exemplifies the globalization of markets?

Fuffy pillows, a U.S.-based pillow company, sells the same pillows worldwide

Technology is indicated as having a major impact on the declining share of national income enjoyed by labor. If this is the case, what is a logical solution to this problem?

Increasing society's investment in education

Russia: These states lie between pure democracies and complete totalitarian systems of government

Pseudo Democracy

United States: Elected representatives who fail to perform adequately will be voted out of office at the next election

Representative Democracy

Germany in the 1930s: In retreat since the early 1980s, a common feature of this type of regime is an overt hostility to socialist or communist ideas

Right-Wing Totalitarianisms

Saudi Arabia: Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles

Theocratic Totalitarianism

Kenya: Politicians from the Kikuyu tribe have long dominated the political system

Tribal Totalitarianism

Varsa Incorporated, a multinational giant, runs a number of diversified businesses. The intellectual property of the firm would include

all computer software for budgeting designed by employees

Under a civil law system, it is the responsibility of a judge only to _____ the law.

apply

What is one characteristic of a representative democracy?

citizens periodically elect individuals to act on their behalf

As a judge in France, Maurice is not allowed to interpret the law but relies on a strict set of codes to determine the outcome of a case. Which type of law is in place in France?

civil law system

A ______ economy follows the principles of collectivism as resources are allocated based on "the common good"

command

Product safety and product liability laws are enforced to protect

consumers

In order to purchase the parts from the supplier, Torc Tools Corp. had to agree with all of the terms set forth in the document the supplier provided which detailed the rights and obligations of the supplier and Torc Tools Corp. This document is a type of

contract

What was the motivation for non-U.S. firms to begin investing across national borders in the 1970s?

desire to disperse production activities to optimal locations

A country that has lax intellectual property laws will find that

firms will be reluctant to enter into such a country

In a pure command economy, the prices at which good and services are sold are planned by the

government

A payment made to expedite or to secure the performance of a routine governmental action is called a

grease payment

The Greek philosopher Aristotle argued for diversity and private ownership. This laid the groundwork for

individualism

When the American colonists fought for independence from Great Britain, the concept of _____ influenced the decision.

individualism

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute

intellectual property

Which term best represents the relationship between the level of corruption and economic growth rate in a country?

inversely proportional

The common law system enjoys a degree of flexibility not found in other systems because

it is interpreted by the law courts with regard to tradition, precedent, and custom

In 2008, the U.S. government stepped in to help some failing financial institutions as a way to prevent further collapse of the economy. Typically, the U.S. government does not interfere in these situations. What type of economy does this exemplify?

mixed

In order for a market economy to work, it is important that supply of a product must not be restricted by a producer. In other words, _____ must be banned.

monopolies

Grease payments or speed money are allowable under U.S. law as a way to expedite the

performance of a routine government action

Nathan works for a major automobile manufacturing company. His company is being sued by hundreds of customers who have been injured when the steering wheel airbags exploded upon a low-impact collision. The customers are demanding monetary damages. This lawsuit is based on

product liability

When considering the legal use of the word, _____ is the term given to a resource over which an individual or business holds a legal title.

property

The strong enforcement of intellectual property laws helps to

reduce the piracy (theft) of intellectual property

In the United States, citizens have the right to elect officials who make decisions on behalf of the public. This practice is the reason the United States is a

representative democracy

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, while laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the

the legal framework of a country reflects the rulers' dominant political ideology.

Nations that limit the freedom of religious expression with laws based on religious principles follow the political system of

theocratic totalitarianism

While he was shopping for new clothes, Manuel noticed there was a sale on shirts by Ralph Lauren. The Ralph Lauren name is an officially registered _____ in menswear clothing.

trademark

China: continues to move toward greater free market reform; at the same time, however, the country continues to deny many basic civil liberties to its citizens.

Communist Totalitarianism

Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.

false