Chapter 2 Short Answer Q's

Identify the three types of economic systems. How do these three types of economic systems differ from each other? How are they the same?

- In a pure market economy, all productive activities are privately owned. Production is determined by supply and demand, and signaled to producers through the price system. The role of the government in a pure market economy is to encourage vigorous free and fair competition between private producers. - In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government. The government's role is to allocate resources for the good of the society. In addition, all businesses are state owned. - A mixed economy is a combination of the other economic systems in which certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

Discuss collectivism. What ideals does the philosophy support? How does collectivism exist in the modern world?

A collectivist political system is one that stresses the primacy of collective goals over individual goals. In that sense, the needs of the society as a whole are viewed as being more important than individual freedoms. Collectivism can trace its roots to the ancient Greek philosopher Plato who suggested that individual rights be sacrificed for the good of the majority. Today, collectivism is reflected in the socialist movement started by Karl Marx who argued that the few benefit at the expense of the many in a capitalist society where individual freedoms are not restricted. Marx advocated state ownership of the basic means of production, distribution, and exchange. Supporters of Marx's ideals were divided into two camps in the early 20th century: communists, who believed that socialism could only be achieved through violent revolution and totalitarian dictatorship; and social democrats, who committed themselves to achieving socialism by democratic means. Today, both versions of socialism are losing followers.

Compare and contrast the four forms of totalitarianism.

In a totalitarian country, an individual's right to freedom of expression and organization, a free media, and regular elections are denied to the citizens. There are four forms of totalitarianism. Communist totalitarianism was until recently the most widespread form of totalitarianism. This form of totalitarianism advocates that socialism can only be achieved through totalitarian dictatorship. Theocratic totalitarianism is found in states where political power is monopolized by a party, group, or individual that governs according to religious principles. Tribal totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power. Right-wing totalitarianism permits some individual economic freedoms but restricts individual political freedom.

What is a country's legal system? Why is it important to international businesses?

The legal system of a country refers to the rules, or laws, that regulate behavior along with the processes by which laws are enforced through which redress for grievances are obtained. It is critical that international companies understand a country's legal system because the legal system regulates business practice, defines the manner in which business transactions are to be executed, and sets down the rights and obligations of those involved in business transactions.

Discuss the key factors that companies must be aware of before deciding to do business in other countries.

The political, economic, and legal systems of a country raise important issues that have implications for the practice of international business. For example, what ethical implications are associated with doing business in totalitarian countries where citizens are denied basic human rights, corruption is rampant, and bribes are necessary to gain permission to do business? The other important factor is that the benefits, costs, and risks associated with doing business in another country are a function of that country's political economic, and legal systems. Companies must balance the likely long-term benefits of doing business in that country against likely costs and risks.

Fat-soluble vitamins

These are absorbed by the lymph and then reach the blood stream. They are stored in body fat and therefor are only needed on periodic basis. Include Vitamin A, D, E & K

Water-soluble vitamins

These include all of the B vitamins, folate, biotin, pantothenic acid and vitamin C. They are easily absorbed and are therefore not stored by the body. It also means there is a low probability of toxicity

Explain how vitamins differ from the energy nutrients

They differ in structure, function and food content

B vitamins involved in metabolism

thiamin, riboflavin, niacin, biotin, & pantothenic acid