International Business- Quiz 1 CH. 2

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 deprived from that resource.

Legal System

- Refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress from grievances is obtained.

Political Economy

- The political, economic, and legal systems of a country. - We use this terms to stress that the political, economic and legal systems of a country are interdependent; they interact with and influence each other, and in doing so, they affect the level of economic well-being.

Representative Democracy

-A political system in which citizens periodically elect individuals to represent them in government. Example-The United States

Communist Totalitarianism

-A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship

Market Economy

-An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced. -All productive activities are privately owned, as opposed to being owned by the state.

Command Economy

-An economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government. -The government plans the goods and services that a country produces, the quantity in which they are produced, and the prices in which they are sold.

Totalitarianism

-Form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited

Product Liability

-Involves holding a firm and its officers responsible when a product causes injury, death, or damage.

Individualism

-Refers to a philosophy that an individual should have freedom in his or her economic and political pursuits. -An emphasis on the importance of guaranteeing individual freedom and self-expression.

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 stress the primacy of collective goals over individual goals. the needs of a society as a whole are generally viewed as being more important that individual freedoms

Privatization

-The sale of state-owned enterprises to private investors

Political System

-The system of government in a nation.

Social Democrats

-Those committed to achieving socialism by democratic means.

Socialists

-Those who believe in public ownership of the means of production for the common good of society. Found by Karl Marx.

Contract

A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

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

A political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism.

Civil Law System

A system of law based on a very detailed set of written laws and codes.

Theocratic Law System

A system of law based on religious teachings. Example - islamic Law

Common Law

A system of law based on tradition, precedent, and custom. When law courts interpret common law, they do so with regard to these characteristics.

World Intellectual Property Organization

An international organization whose members sign treaties to agree to protect intellectual property.

Mixed economies

Can be found between market and command economies. Certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

United nations Convention on Contracts for the international Sale of Goods (CIGS)

Establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Patent

Grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention.

Paris Convention for the Protection of Industrial Property

International agreement to protect intellectual property.

Intellectual Property

Products of the mind, ideas (e.g., books, music, computer software, designs, technological know-how). Intellectual property can be protected by patents, copyrights, and trademarks.

Product Safety Laws

Set certain safety standards to which a product must adhere

Contract Law

The body of law that governs contract enforcement

Trademarks

The designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products.

Copyrights

The exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

Public Action

The extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats

Communists

Those who believe socialism can be achieved only through revolution and totalitarian dictatorship.

Foreign Corrupt Practices Act (FCPA)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

Private Action

Violation of property rights through theft, piracy, blackmail, and the like by private individuals or groups.

Theocratic Totalitarianism

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