BUS5 187: Smartbook Chp 2

If you adhered to the concept of individualism, you would say that individualism

stresses that the interests of the people are more important than the interests of the state

In a pure market economy, production of goods is determined by

the interaction of supply and demand

Which statement accurately describes a civil law system?

unlike a common law system, a civil law system relies on detailed codes, and therefore, can be less adversarial

A ____ law system is based on a detailed set of laws organized into codes.

civil

In a _____ economy, dynamism and innovation are absent because private ownership does not exist and there is no incentive for individuals to look for a better way to serve customers.

command

What is an accurate description of intellectual property laws?

intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.

In a pure ____ economy, all productive activities are owned privately --- they are not owned by the state

market

Hanson Manufacturing holds legal title to the land, buildings, and equipment associated with the business. These holdings represent the company's ______.

property

A government plans the quantity of goods and service produced as well as the prices at which they are sold in a pure _____ economy.

command

The three broad types of economies systems include a market economy, a mixed economy and a(n) _____ economy.

command

Jarek has been asked to give characteristic of a command economy to the class. What should he say?

command economies do not make innovation a priority and, therefore, tend to stagnate

A country that bases its laws on the traditions within the country's legal history operates under a ______ law legal system.

common

____ refers to political system in which the citizens exercise power directly or elect representatives to form a governing body.

democracy

In a market economy, the government's role is to

encourages free and fair competition and minimize restrictive business practices

True or False: To date, all major trading nations have accepted the United Nations Convention on Contracts for the International Sale of Goods.

false

True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.

false

The purpose of a(n) ______ payment is to facilitate the performance of duties that a government has already obligated itself to do.

grease

Samuel wrote a screenplay and he is traveling to Los Angeles next week to pitch his idea to a movie studio. The screenplay is an example of ____ property.

intellectual

The most widely practiced theocratic legal system in the modern world is ____ law

islamic

What statement BEST describes a totalitarian system?

it is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life

What is one way high levels of corruption affect a country?

it reduces the return on investment of a business

Product _____ is the area of law that holds a firm and its officers responsible for injuries caused by their product

liability

Under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, the intellectual property regulations established by the World Trade Organization

oblige members to grant and enforce patents lasting at least 20 years

The system of government in a nation is called the ____ system.

political

The term ____ is used to stress that the political, economic, and legal systems of a country are connected

political economy

The term _____ is used to stress that the political, economic, and legal systems of a country are connected.

political economy

As used in the text, the term ____ refers to a resource that an individual or business legally owns.

property

Under the government of Vladimir Putin in Russia, elections are held for political office while there are also systems in place that limit the civil liberties of opposition groups. What type of government does this represent?

pseudo-democracy

High levels of corruption tend to affect a nation by

reducing foreign direct investment

What is a difference between the contracts drafted in a common law framework and those in a civil law system?

resolving contract disputes in a common law system tends to be more adversarial than in civil law systems

The CISG establishes rules that govern contracts specifically between

sellers and buyers who have companies in different nations

Under the TRIPS agreement, the very poorest of countries have _____ to comply to the rules of the agreement

ten years

Compare to contracts drafted in a common law system, contracts in a civil law system

tend to be much shorter and less specific

The Foreign Corrupt Practices Act was established in the 1970s following the revelation that companies in _____ had bribed government officials in foreign countries as an attempt to win lucrative contracts.

the United States

In a totalitarian country, you would find that

the ruler's decisions are not to be questioned by individuals

The three main types of legal systems found around the world include common law, civil law, and _____ law.

theocratic

True or False: Patents provide a reassurance for companies and encourage them to pursue extensive research projects.

true

When product safety laws are more stringent in a firm's home country than in a foreign country the home country is entering, the most ethical thing to do is to follow _______ standards

home-country

The _____ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them

legal

Antitrust laws are put into a place in a market economy in order to

limit monopolies

In a pure ____ economy, all productive activities are owned privately -- they are not owned by the state.

market

Select all that apply: What two broad issues for international business can be identified when considering the political, economic, and legal environments of a country?

1. these systems clearly influence the attractiveness of a country as a market or investment site 2. these systems raise important ethical issues that have implications for international business

According to many business executives, what makes American businesses less competitive in the global marketplace?

high costs of liability insurance in the United States

Which law makes it illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority?

Foreign Corrupt Practices Act

_____ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.

intellectual

Select all that apply: What three systems make up the political economy of a country?

1. political system 2. economic system 3. legal system

Select all that apply: If all other things are equal, what three environments would make a country more attractive as a place to do business in?

1. strong protection of property rights 2. democratic political institutions 3. market-based economic system

_____ refers to a philosophy that promotes the free exercise of one's goas and desires in economic and political pursuits.

individualism

In a theocratic law system, the law is based on

religious teachings

Select all that apply: What are the three main types of legal systems in use around the world?

1. common law 2. civil law 3. theocratic law

Select all that apply: What are the two dimensions used to assess a country's political system?

1. democratic vs. totalitarian 2. collectivism vs. individualism

Select all that apply: A country under totalitarian rule would experience which two of these situations?

1. denial of civil liberties 2. censored media

Select all that apply: What are the three broad types of economic systems?

1. mixed economy 2. command economy 3. market economy

If you were asked to provide a fact about a common law system, what should you say?

A common law system has a degree of flexibility that other legal systems lack

What is the objective of a pure command economy?

allotment of resources for the overall good of society

Grease payments are considered an acceptable form of a

bribe

Corner Coffee Inc. makes coffee pots. Last year, thirty people received serious burns when water leaked down the side of the carafe of a Corner Coffeemaker while the coffee was brewing. Even though Corner Coffee pulled this coffee pot from production, all thirty people who were injured have field a criminal case against the company. These customers can hold the company responsible based on _____ law.

product liability

Under a(n) _____, authoritarian elements are used to attempt to deny basic political and civil liberties to individuals.

pseudo-democracy

Which of the following statements about political systems is TRUE?

typically, political systems that place a high emphasis on individualism tend to be democratic

Which statement best exemplifies a political system?

typically, the political system of a country can be assessed by the degree to which it is democratic of totalitarian