BA 310 CH 6

caveat emptor

"Buyer beware"; involves placing the burden of determining product safety on consumers

corruption

a situation where businesses are able to illegally alter relevant private and/or public decision making by way of bribes, kickbacks, blackmail, extortion, and related activities

representative democracy

form of government in which citizens vote to elect given individuals to serve as their representatives for a certain period of time

litigation

involves bringing a dispute to a publicly/governmentally run court of law for resolution

terrorism

involves unlawful acts or violence threatening the physical safety of others

criminal law

law that establishes which violations of a nation's laws are crimes punishable by possible incarceration

antitrust laws

laws to promote "fair competition" among businesses

totalitarian government

system of government in which individuals govern with- out the support or consent of the citizenry; for example, a military dictatorship

tax law

the body of law dealing with governmental levying of taxes on individuals and corporations

contract law

the body of law governing legally enforceable agreements between parties to engage in economic exchange

copyright

the exclusive legal right of authors, playwrights, publishers, artists, and composers have to publish and disseminate their work as they see fit

dispute settlement law

the law governing how disputes arising in the conduct of global business are settled

product safety law

the law that establishes the standards of product safety to which the manufacturers and sellers of products are to be held

intellectual property protections

the limited monopoly rights legally granted by a nation to the creator of intellectual property

public corruption

the practice of making illegal payments to government officials or engaging in blackmail, extortion, or other related activities in order to obtain government contracts or governmental approval for business activities

athenian democracy

the purest form of democracy, in which all adult citizens vote directly on matters affecting the community

patent

the right granted to the inventor of a product or process that excludes others from selling, making, or using the invention for a certain period of time

economic risks

the risks that economic problems or mismanagement in a given country will have a meaningful negative impact upon the conduct of business in that country

political risks

the risks that political forces or problems in a given country will have a meaningful negative impact upon the conduct of business in that country

caveat venditor

"Seller beware"; involves placing on manufacturers/sellers of products the burden of making sure products are safe or at least clearly and explicitly warning consumers about the potential safety risks of said product

democracy

Greek for "rule by the people"; form of government in which all citizens have a right to vote

micropolitical risk

a political risk that only affects a certain industry or set of firms in a given country

overseas private investment corporation (OPIC)

a U.S. government agency that sells political risk insurance to U.S. businesses operating in countries with which the United States has a bilateral investment treaty

terrorism risk insurance act of 2002

a U.S. law that after a certain deductible provides U.S. businesses government insurance coverage for the risk of terrorism

foreign corrupt practices act (FCPA)

a U.S. law that prohibits U.S. companies from bribing or otherwise corrupting foreign government officials in order to win foreign government contracts or obtain other foreign government assistance for their businesses

trademark

a distinctive phrase, name, word, picture, symbol, or design, or a combination of these, that identifies a given business's service or product and is owned by said business

civil law legal system

a legal system based on a comprehensive listing of legal rules in sets of written codes of law

theocratic law legal system

a legal system based on a religious document and religious teachings

common law legal system

a legal system where legislative bodies generally enact less specific legal rules giving judges/courts considerable authority in interpreting these rules based on precedent and other factors

macropolitical risk

a political risk that essentially affects all businesses in a given country

genericized trademark

a trademark that has become so well known or colloquial that it now describes a general class of product or service, as opposed to a specific product or service as intended by the trademark's owner

arbitration

an alternative dispute resolution process whereby the par- ties designate a neutral private person or group of persons to hear and decide the case

capitalism

an economic ideology where businesses are privately owned, strong individual incentives exist, and the government plays very little role in the economy

communism

an economic ideology where the government/state basically owns and controls all major factors of production and is philosophically an economically classless society

socialism

an economic ideology where the government/state plays a strong role in the economy and may own stakes in certain businesses

private corruption

business corruption involving other private businesses, individuals, or groups

tax haven countries

countries with little or no tax transparency

collusion

practice of companies acting in a manner that secretly thwarts competition among themselves

intellectual property

property that is the product of intellectual rather than physical activity

monopoly

situation where there is only a single seller of a product in an industry, and there are very high barriers to enter this industry