International Business Chapter 2
Right- Wing Totalitarianism
Permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism. Think China?
Political System
The system of government in a nation. 2 dimensions: degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian.
Legal System
A country refers to the rules or laws that regulate behavior along with the processes by which laws are enforced and through which redress for grievances is obtained.
Contract
A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.
Theocratic Totalitarianism
A party or group or individual governs according to religious principles monopolizes according to religious principles.
Market Economy
All productive activities are privately owned as opposed to being owned by the state. Production is determined by the interaction of supply and demand.
Common Law
Based on Tradition, precedent and custom. Tradition refers to the country's legal history.
Civil Law System
Based on detailed set of laws organized into codes.
Communists
Believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.
Mixed Economy
Certain sectors are left to private ownership and fee market mechanisms while other sectors have significant state ownership and government planning.
Social Democrats
Committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship.
Trademarks
Designs and names that are registered.
Socialists
From Karl Marx. , Group that believed nation's resources and industries should be owned and operated by the government on behalf of the people
Huntington's Thesis
Global Terrorism is a product of the tension between civilizations and the clash of value systems and ideology.
Patent
Grants the inventor of a new product the right for a defined period of time to make, use or sell that invention.
Product Liability
Holding a firm responsible when a product causes something bad.
Deregulation
Involves removing legal restrictions to the free play of markets....
Tribal Totalitarianism
Like the ones in Africa: Zimbabwe, Tanzania, Uganda and Kenya.
Foreign Corrupt Practices Act
Makes it illegal to bribe a foreign country official in order to let them have business in the briber's country.
Theocratic Law
One in which the law is based on religious teachings.
Democracy
Refers to a political system in which government is by the people, exercised either directly or through elected representatives.
Collectivism
Refers to a political system that stresses the primacy of collective goals over individual goals. Society's needs>individual goals.
Property
Refers to a resource over which an individual or business holds a legal title.
Property Rights
Refers 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.
Individualism
Refers to the philosophy that an individual should have freedom in his or her economic and political pursuits. 2 important things: Individual Freedom and Self- Expression, and the welfare of the society is based on the people's own pursuit of success.
Intellectual Property
Refers to the property that is the product of intellectual activity.
Private Action
Refers to theft, piracy, blackmail and so on. Think of Russia and stuff. Mafia.
The rights of people
Right to Freedom of expression, opinion and organization; free media; regular elections; universal adult suffrage; limited terms for elected representatives; fair court system that is independent from the political system; nonpolitical state bureaucracy; nonpolitical force and armed service; free access to state information.
Product Safety Laws
Set certain safety standards to which a product must adhere.
Contract Law
The body of law that governs contract enforcement.
Copyrights
The exclusive legal rights of authors, composers, playwrights atists and publishers.
Command Economy
The government plans the goods and services that a country produces, the quantity in which they are produced and the prices at which they are sold. *Dynamism and innovation are absent from command economies.
Communist Totalitarianism
The most common one.
Privatization
To change from government or public ownership or control to private ownership or control.
Political Economy
To stress that the political, economic and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being.
Representative Democracies
What most modern democratic states practice.
Public Action
When public officials are mad corrupt.
Totalitarianism
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.
