Global Business Ch.2

Communist Totalitarianism

China

According to the _________, it is illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.

Foreign Corrupt Practices Act

What is the most widely practiced theocratic legal system in the modern world?

Islamic law

Which of the following is a typical function of a trademark?

It allows merchants or manufacturers to designate and differentiate their products.

Which of the following is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties?

Totalitarianism

The organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the

World Intellectual Property Organization

John Smith, a U.S. based businessman, paid the equivalent of $20 to an official of the country of Murundi to expedite the overnight delivery of critical documents. When questioned, John Smith claimed this was not a bribe. The $20 is an example of

a grease payment

Which of the following nations is most likely to be unappealing as a place for doing business?

a nation that has a totalitarian political system

Which of the following is a law system based on a detailed set of laws organized into codes?

civil

A legal system which is based on a detailed set of laws organized into codes is referred to as a

civil law system

The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on

collectivism

Which of the following legal systems is most likely to be based on tradition, precedent, and custom?

common law

Which of the following is a form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship?

communist totalitarianism

Those who believe that socialism can be achieved only through violent revolution and totalitarian dictatorship are called

communists

Some countries consider bribes to be

compensation for work that would otherwise not be completed by underpaid government workers

Product safety and product liability laws are enforced to protect

consumers

Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights and obligations of the parties involved?

contracts

A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n)

copyright

Which of the following refers to a political system in which the government is by the people, exercised either directly or through elected representatives?

democracy

Which of the following is most likely to be the result of a country having lax intellectual property laws?

firms will be reluctant to enter into such a country.

In a pure command economy, the prices at which goods 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

Which of the following does the U.S. law and OECD convention allow as an exception?

grease payments or speed money

Some economists support the practice of paying small bribes based on the argument that they

help promote economic growth

Patents, copyrights, and trademarks establish ownership rights over what type of property?

intellectual

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

intellectual property

The practices of bribery

is a normal part of business in some countries

Which of the following refers to an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced?

market

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning?

mixed

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should

move toward a market-based system

Your U.S.-based company wants permission to build a factory in a foreign country. You have been asked to pay a bribe in order to get the paperwork approved. You should

not pay because doing so is prohibited by the Foreign Corrupt Practices Act

ABC Medical Corporation has developed a new medication to treat a rare disease. Which type of legal protection grants ABC Medical Corporation exclusive rights for a defined period to the manufacture, use, or sale of the new medication?

patent

Which of the following grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention?

patent

The sale of state-owned enterprises to independent, nonpublic investors is referred to as

privatization

Which of the following type of laws hold a firm and its officers responsible when a product causes injury, death, or damage?

product liability

Intellectual property rights are intended to

protect original ideas/work

In what type of economy are all businesses state owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals?

pure command

The philosophy behind intellectual property rights is to

reward the creator of an idea

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

Jewish law is an example of what type of law system?

theocratic

Which of the following protects the Nike "swoosh" logo from being used by any other shoe manufacturer?

trademark

In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was

"clearly malicious"

Tribal Totalitarianism

A political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power.

Right-wing Totalitarianism

Italy in the 1930's

Countries that emphasize individual goals over collective goals tend to have what type of economic system?

Market

Theocratic Totalitarianism

a political system in which political power is monopolized by a party, group, or individual that governs according to religious principles