Ch. 2

Which of the following nations is most likely to be unappealing as a place for doing business? A. A nation that has a market-based economic system B. A nation that has a strong legal system C. A nation that has a democratic political institution D. A nation that enforces strong property rights E. A nation that has a totalitarian political system

A nation that has a totalitarian political system

Which of the following is a feature of representative democracy? A. Restrictions on an individual's right to freedom of expression, opinion, and organization B. Inability of the citizens to vote out elected representatives who fail to perform their job adequately at the next election C. An unlimited term for elected representatives D. A court system that is linked to the political system E. A nonpolitical police force and armed service

A nonpolitical police force and armed service

Which of the following is true about the three main types of legal systems? A. Judges under a civil law system have more flexibility than those under a common law system. B. The common law system evolved in the United States over hundreds of years. C. Although Islamic law is primarily concerned with moral behavior, it has been extended to cover certain commercial activities. D. A theocratic law system is based on a detailed set of laws organized into codes. E. Common law cannot be altered, clarified, or amended to deal with new situations.

Although Islamic law is primarily concerned with moral behavior, it has been extended to cover certain commercial activities.

_____ argued that private property is more highly productive than communal property and will thus stimulate progress. A. Aristotle B. Friedrich Engels C. Plato D. Karl Marx E. Charles Darwin

Aristotle

In the context of property rights, which of the following best exemplifies private action? A. Levying excessive taxes B. Requiring expensive licenses or state permits from private property holders C. Taking assets into state ownership without compensating the owners D. Government bureaucrats demanding bribes from businesses in return for the rights to operate in a country E. Business owners stealing their competitors trade secrets and intellectual properties

Business owners stealing their competitors trade secrets and intellectual properties

Which of the following is true about communism? A. Communism propagates the idea of "private profit rather than public good." B. By the mid-1990s communism started rising worldwide. C. China has moved sharply away from strict adherence to communist ideology in the economic sphere. D. Communists committed themselves to achieving socialism by turning their backs on violent revolution and dictatorship. E. Communism stresses that the interests of the individual should take precedence over the interests of the state.

China has moved sharply away from strict adherence to communist ideology in the economic sphere.

In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context, which of the following is most likely to be the political system adopted by Normian Republic? A. Individualism B. Democracy C. Collectivism D. Capitalism E. Protectionism

Collectivism

Which of the following legal systems is most likely to be based on tradition, precedent, and custom? A. Common law B. Civil law C. Autocracy law D. Monarchy law E. Universal law

Common law

_____ is a form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship. A. Tribal totalitarianism B. Democratic totalitarianism C. Communist totalitarianism D. Theocratic totalitarianism E. Right-wing totalitarianism

Communist totalitarianism

Which of the following statements is true about the difference between contracts in common law and civil law systems? A. Contracts drafted under a common law system tend to be longer than those drafted under a civil law system. B. Contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system. C. It is more expensive to draw up contracts in a civil law system than in a common law system. D. Resolving contract disputes tend to be less adversarial in common law systems than in civil law systems. E. Civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems.

Contracts drafted under a common law system tend to be longer than those drafted under a civil law system.

The _____ 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. A. Contracts for the International Sale of Goods B. Bill of Exchange C. United Nations Charter D. International Forwarding Agent Contract E. International Promissory Note

Contracts for the International Sale of Goods

In which countries are we likely to find free market economies? A. Countries where the good of the society has precedence over private profit B. Countries where individual goals are given primacy over collective goals C. Countries where state-owned enterprises have monopoly in certain industries D. Countries that have adopted communism as their political system E. Countries where the government plans the goods and services produced

Countries where individual goals are given primacy over collective goals

In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations? A. Tradition B. Precedent C. Custom D. Interpretation E. Culture

Custom

Which of the following terms refers to a political system in which government is by the people, exercised either directly or through elected representatives? A. Despotism B. Democracy C. Totalitarianism D. Theocracy E. Communism

Democracy

T or F: A common law system tends to be less adversarial than a civil law system.

FALSE

T or F: All right-wing dictatorships display an affinity toward socialist or communist ideas.

FALSE

T or F: Bribes are legal payments meant to facilitate performance of duties that the recipients are already obligated to perform.

FALSE

T or F: By the mid-1990s, communism was rising worldwide.

FALSE

T or F: Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.

FALSE

T or F: Compared to common law system, it is more expensive to draw up contracts in a civil law jurisdiction.

FALSE

T or F: Historically, pure market economies were found in communist countries where collectivist goals were given priority over individual goals.

FALSE

T or F: In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.

FALSE

T or F: In a representative democracy, elected representatives who fail to perform their job adequately cannot be voted out of office at the next election.

FALSE

T or F: In countries where individual goals are given primacy over collective goals, we are less likely to find market-based economic systems.

FALSE

T or F: In most democratic states, those who question the right of the rulers to rule find themselves imprisoned, or worse.

FALSE

T or F: In practical terms, collectivism creates a more favorable environment for international businesses to operate in than individualism.

FALSE

T or F: Liability laws are typically least extensive in highly developed nations.

FALSE

T or F: One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.

FALSE

T or F: Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian.

FALSE

T or F: Private action to violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders.

FALSE

T or F: The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems.

FALSE

T or F: The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

FALSE

T or F: The term "public action" refers to the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

FALSE

T or F: The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other.

FALSE

T or F: When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.

FALSE

In the 1970s, the United States passed the _____ following revelations that U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts. A. International Sale of Goods Act B. Foreign Exchange Management Act C. Foreign Corrupt Practices Act D. Sarbanes-Oxley Act E. Foreign Investment in Real Property Tax Act

Foreign Corrupt Practices Act

Which of the following is most likely to be advocated by individualism? A. Communal property is more highly productive than private property. B. Public good should be preferred over private profit. C. State-owned companies should monopolize certain industries. D. The welfare of society is best served by some collective body such as government. E. Free market ideologies should be followed for achieving better standards of living.

Free market ideologies should be followed for achieving better standards of living.

As per the U.S. law and OECD convention, which of the following will most likely to be considered as a grease payment? A. Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country. B. Gold Fire Inc. made a small payment of $20 to speed up some paper work related to tax returns in a less developed country. C. The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution. D. Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product. E. Gold Fire. Inc made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.

Gold Fire Inc. made a small payment of $20 to speed up some paper work related to tax returns in a less developed country.

Which of the following best exemplifies public action? A. The mafia in Cedia Republic demands "protection money" from successful domestic business owners. B. Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups. C. Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic. D. The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners. E. To promote the Cedian culture, the government has made Cedian movies, which are based on Cedian history, tax-free.

Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.

In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle? A. Guaranteeing individual freedom B. Government dictating what is in best interest of society C. Guaranteeing self-expression D. Committing to private ownership E. Treating individual diversity as desirable

Government dictating what is in best interest of society

Which of the following is true about grease payments? A. Grease payments are more offensive than bribes. B. Grease payments facilitate performance of duties that the recipients are not obligated to perform. C. A grease payment is a form of penalty. D. Both the U.S. law and OECD convention include language that opposes grease payments. E. Grease payments are technically bribes, however they are distinguishable from bribes.

Grease payments are technically bribes, however they are distinguishable from bribes.

Which of the following does the U.S. law and OECD convention allow as an exception? A. Bribing a foreign government official to obtain a contract B. Failure to keep records that would reveal if a violation of the Foreign Corrupt Practices act has occurred C. Grease payments or speed money D. Private action E. Breach of the rule of law

Grease payments or speed money

Which of the following is true about the three broad types of economic systems? A. For pure market economy to function efficiently product supply must be restricted. B. In a command economy, state-owned enterprises have little incentive to control costs and be efficient. C. The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers. D. Mixed economies were once uncommon throughout much of the world, although they are becoming much popular now. E. Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

In a command economy, state-owned enterprises have little incentive to control costs and be efficient.

Which of the following is true about property rights? A. Ideas are not considered a part of "property." B. The legal systems defining and protecting property rights are the same worldwide. C. In China, still nominally a communist state, individuals do not have the same legal protection for their property as the state has. D. A "private action" to violate property rights is said to have occurred when politicians and government bureaucrats extort income, resources, or the property itself from property holders. E. In many countries, laws protecting property rights are not enforced by the authorities and the rights are violated.

In many countries, laws protecting property rights are not enforced by the authorities and the rights are violated.

Which of the following can be traced to the ancient Greek philosopher, Aristotle? A. Collectivism B. Individualism C. Socialism D. Totalitarianism E. Communism

Individualism

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm? A. Income arising from renting lands and buildings B. Profits arising from the sale of agricultural crops C. Interest earned by lending capital to other firms D. Innovations and capabilities, and skills of the employees E. Investments made in raw materials and machinery

Innovations and capabilities, and skills of the employees

In the context of "knowledge" economy of the twenty-first century, which of the following statements is true about intellectual property? A. Intellectual property has become an increasingly important source of economic value for businesses. B. Protecting intellectual property has become increasingly easy in the twenty-first century. C. Intellectual property laws limit the creativity and the ability of people to search for novel ways of doing things. D. Firms always choose to stay out of countries where intellectual property laws are strict. E. Companies in a country are more likely to commit themselves to extensive basic research if the country prohibits the use of patents.

Intellectual property has become an increasingly important source of economic value for businesses.

Which of the following terms best defines the relationship between the level of corruption and economic growth rate in a country? A. Directly proportional B. Inversely proportional C. Independent D. Positive correlation E. Zero correlation

Inversely proportional

_____ is the most widely practiced theocratic legal system in the modern world. A. Christian law B. Islamic law C. Jewish law D. Hindu law E. Buddhist law

Islamic law

Which of the following is a typical function of a trademark? A. It marks the sales territory for which individual salespeople are assigned. B. It restrains authors, composers, playwrights, artists, and publishers from trading their creative work. C. It signifies that a country is a member of the World Trade Organization. D. It acts as a permit to expand a business globally. E. It allows merchants or manufacturers to designate and differentiate their products.

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

Which of the following statements is most likely to be true regarding private ownership? A. It reduces a nation's dynamism and its investments in innovation and creativity. B. It is most commonly found in command economies. C. It eliminates competitors and reduces pressure to lower production costs. D. It gives entrepreneurs an incentive to search for better ways of serving consumer needs. E. It is based on the philosophy that "the good of society is more important than the interests of an individual."

It gives entrepreneurs an incentive to search for better ways of serving consumer needs.

Modern socialism traces its intellectual roots to: A. Aristotle. B. David Hume. C. Karl Marx. D. Adam Smith. E. Milton Friedman.

Karl Marx

Which of the following systems is a part of the political economy? A. Religious system B. Value system C. Demographic system D. Legal system E. Technological system

Legal system

Which of the following best exemplifies facilitating or expediting payments in business? A. Making payments to government officials not to cancel the business license after violating local laws B. Paying a lump sum amount in order to win a government tender for road construction in a foreign country C. Making unsolicited payments to the concerned officers in return for employing child labor D. Making payments to customs officials in order to ship pirated merchandise E. Making small payments to government officials in order to speed up the work they are already obligated to perform

Making small payments to government officials in order to speed up the work they are already obligated to perform

Which of the following is most likely to be protected by a copyright? A. A new manufacturing process invented in a company B. A newly invented telecommunication device C. Tangible property like land and building D. Movies produced and directed by a person E. A new type of car invented by an automobile company

Movies produced and directed by a person

Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape? A. Warrant B. Patent C. Copyright D. Trademark E. Writ

Patent

Which of the following terms best represents the system of government in a nation? A. Common system B. Political system C. Environmental system D. Command system E. Social system

Political system

Which of the following law systems is most likely to be used by a law court if it solves a complicated case related to property rights, by basing his judgment on similar, old cases that have come before the courts? A. Theocratic law system. B. Civil law system C. Precedent law system D. Religious law system E. Monarchy law system

Precedent law system

_____ laws hold a firm and its officers responsible when a product causes injury, death, or damage. A. Product equity B. Product failure C. Product liability D. Product parity E. Product testing

Product liability

Which of the following statements is true about product safety and liability laws? A. There are no criminal product liability laws, only civil product liability laws exist. B. Liability laws are typically most extensive in less developed nations. C. A boom in product liability suits and awards in the United States resulted in a dramatic decrease in the cost of liability insurance. D. Product liability can be much greater if a product does not conform to required safety standards. E. If product safety laws are tougher in a firm's home country than in a host country, the ethical thing to do is to adhere to host-country standards.

Product liability can be much greater if a product does not conform to required safety standards.

Veronica had been getting red patches on her face after using a protein-based lotion manufactured by Nature Life Research Lab. On consulting a dermatologist, she learnt that the lotion's steroid levels were beyond the standard levels permitted by the government and the damage caused by the lotion was irreversible. Which of the following will address Veronica's grievances? A. Laws related to property rights B. Product liability laws C. Intellectual property laws D. Foreign Corrupt Practices Act E. Sarbanes-Oxley Act

Product liability laws

_____ generally permits individual economic freedom, but restricts individual political freedom on the grounds that it would lead to the rise of communism. A. Pure democracy B. Right-wing totalitarianism C. Free market capitalism D. Representative democracy E. Communist totalitarianism

Right-wing totalitarianism

Which of the following is inconsistent with the Marxist philosophy? A. Concern over public good rather than private profit B. Monopoly of state-owned companies in certain industries C. Opposing the ideologies of capitalist societies D. Substantial limits on individual political freedom E. Selling state-owned enterprises to private investors

Selling state-owned enterprises to private investors

_____ attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship. A. Pure capitalists B. Social democrats C. Individualists D. Anarchists E. Aristocrats

Social democrats

Which of the following has been advocated by Karl Marx? A. Capitalist Society B. Individualism C. Selling state-owned enterprises to private investors D. Socialism E. Private profit over public good

Socialism

The regulations imposed under the _____ agreement, oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years. A. CIGS B. TRIPS C. NAFTA D. UN E. IMF

TRIPS

T or F: By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that it will treat the convention's rules as part of its law.

TRUE

T or F: Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out.

TRUE

T or F: In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual's right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens.

TRUE

T or F: In practical terms, individualism translates into an advocacy for democratic political systems and market economics.

TRUE

T or F: Intellectual property laws stimulate innovation and creative work.

TRUE

T or F: International businesses lobby their respective governments to push for international agreements to ensure that intellectual property rights are protected and that the law is enforced.

TRUE

T or F: Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.

TRUE

T or F: Judges under a civil law system have less flexibility than those under a common law system.

TRUE

T or F: Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e., businesses).

TRUE

T or F: Other things being equal, a nation with democratic political institutions, is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

TRUE

T or F: Plato did not equate collectivism with equality.

TRUE

T or F: The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.

TRUE

T or F: The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging market-based economic reforms.

TRUE

T or F: When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes.

TRUE

T or F: When intellectual property laws are lax, firms are at a greater risk of having their ideas stolen by local entrepreneurs.

TRUE

T or F: When product safety laws are tougher in a firm's home country than in a foreign country, the ethical thing to do is to adhere to home-country standards.

TRUE

Who among the following can claim product liability from the offender? A. Jason wants to sue a multinational company for mass manufacturing one of his inventions without purchasing the rights. B. Rebecca's patented jewelry designs have been imitated and sold at a low price under her brand name. C. The airbags in Brian's car, manufactured by Zigwheels Inc, failed to inflate when his car met with an accident. This injured Brian and damaged the car. D. Fred has accused his employer of forcing him and his teammates to work in an unsafe environment. E. Samantha claims that her neighbor has stolen valuable ancestral antiques from her house.

The airbags in Brian's car, manufactured by Zigwheels Inc, failed to inflate when his car met with an accident. This injured Brian and damaged the car.

Which of the following is true about legal systems? A. All countries have the same, uniform legal environment. B. Unlike the economic system of a country, the legal system is independent of the country's political system. C. The government of a country defines the legal framework within which firms do business. D. The attractiveness of a country as an investment site or market is unaffected by its legal system. E. Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise.

The government of a country defines the legal framework within which firms do business.

_____ 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. A. Capitalism B. Totalitarianism C. Pure democracy D. Republicanism E. Representative democracy

Totalitarianism

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that: A. U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts. B. U.S. companies were involved in bribing U.S. government officials in cases related to major corporate and accounting scandals. C. U.S. government bureaucrats demanded bribes from U.S. companies in return for the permit to operate in a foreign country. D. several companies were selling their products at lower prices in foreign countries than in the United States. E. successful business owners in the U.S. often had to pay "protection money" to the Mafia or face violent retribution.

U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts.

The Republic of Marwa has decided to open its economy to globalization. Which of the following will facilitate this decision of Marwa? A. A strong commitment to communism B. A strong presence of private action in the nation C. Adopting the Contracts For the International Sale of Goods (CIGS) D. Creating a national environment that promotes public action E. Breaking the rule of law

adopting the Contracts For the International Sale of Goods (CIGS)

Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute: A. assets which receive no protection under law. B. non-performing assets. C. tangible assets. D. an intellectual property. E. a real property.

an intellectual property

When firms do not wish to accept the rules of the CIGS, they often opt for _____ to settle contract disputes. A. UN involvement B. arbitration C. collective bargaining D. the common law system of the U.S. E. Islamic law

arbitration

Grease payments are technically _____. A. tax payments B. bribes C. company assets D. penalties E. selling costs

bribes

Democracy, in its purest form, is based on the belief that: A. citizens should be directly involved in decision making. B. political freedom of the citizens should be limited. C. citizens are responsible for their own economic health and thus need no government. D. individual freedom in the economic sphere should be restricted. E. one person should have an absolute control over all the citizens of a nation.

citizens should be directly involved in decision making.

A _____ law system is based on a detailed set of laws organized into codes. A. civil B. theocratic C. common D. traditional E. precedent

civil

When _____ is emphasized, the needs of society as a whole are generally viewed as being more important than individual freedoms. A. democracy B. collectivism C. individualism D. capitalism E. privatization

collectivism

In a pure _____ 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. A. command B. market C. mixed D. laissez-faire E. deregulated

command

In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as: A. communists. B. capitalists. C. democrats. D. individualists. E. anarchists.

communists

Product safety and product liability laws are enforced to protect: A. intellectual property rights. B. companies from their domestic competitors. C. companies from their foreign competitors. D. consumers. E. product inventors.

consumers

_____ are documents that specify the conditions under which an exchange is to occur and details the rights and obligations of the parties involved. A. Memoranda B. Manifestoes C. Contracts D. White papers E. Minutes

contracts

A composer can protect an original musical score from being copied and sold by someone else by acquiring a(n) _____ for the score. A. patent B. warrant C. trademark D. copyright E. affidavit

copyright

In comparison to market economies, command economies lack: A. government interference in allocation of resources. B. dynamism and innovation. C. concern for the interests of the nation. D. commitment to communism. E. any opposition to private ownership.

dynamism and innovation

Small legally acceptable payment made to speed up the issuance of permits or licenses, or process paperwork is typically referred to as a(n): A. facilitating payment. B. negative externality. C. opportunity cost. D. social cost. E. accrued expense.

facilitating payment

In comparison to pure command economies, free market economies lack: A. private ownership. B. incentives for entrepreneurs. C. incentives to improve products and processes. D. government control over production and pricing. E. vigorous free competition between producers.

government control over production and pricing

A common feature of many right-wing dictatorships is: A. total restriction on individual economic freedom. B. strong commitment to socialist or communist ideas. C. governments that are made up of military officers. D. politicians from a particular tribe dominating the political system. E. the direct involvement of the citizens in decision making.

governments that are made up of military officers.

In practical terms, _____ translates into an advocacy for democratic political systems and free market economics, which in general creates the most favorable environment for international businesses to operate in. A. collectivism B. totalitarianism C. individualism D. communism E. socialism

individualism

The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the Cedian ideology is "private profit over public good." In this context, it can be said that Cedia most likely follows the philosophy of: A. totalitarianism. B. socialism. C. individualism. D. communism. E. Marxism.

individualism

Patents, copyrights, and trademarks establish ownership rights over _____ property. A. intellectual B. real C. tangible D. non-performing E. stolen

intellectual

The common law system enjoys a degree of flexibility not found in other systems because : A. it is usually found in democratic republics. B. it originated from Great Britain and can be found in almost all of its former colonies. C. it is interpreted by the law courts with regard to tradition, precedent, and custom. D. it is based on a detailed set of laws organized into codes. E. it has originated recently; almost a decade ago.

it is interpreted by the law courts with regard to tradition, precedent, and custom.

Which of the following statements is true about political systems? A. The political system of a country is independent of its economic and legal systems. B. The political system of a country is of no importance to international business. C. It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. D. it is possible to have totalitarian societies that are not collectivist. E. The societal culture of a country does not influence its political system.

it is possible to have totalitarian societies that are not collectivist.

In the context of common law, the term "tradition" most likely refers to the: A. religious aspect in the law. B. ways in which laws are applied in specific situations. C. political beliefs of the majority of the people in the country D. legal history of a country. E. ways in which laws are organized into codes.

legal history of a country

A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this: A. makes American businesses less competitive in the global marketplace. B. offers American businesses greater protection from foreign competitors. C. exposes consumers to greater product risks. D. eventually makes it cheaper for foreign companies to do business in the United States. E. discourages American companies from outsourcing jobs in less developed countries.

makes American businesses less competitive in the global marketplace.

A _____ economy is an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced. A. barter B. command C. market D. regulated E. centrally planned

market

In most totalitarian states: A. free and fair elections are not denied to the citizens. B. there is free access to state information. C. all the basic civil liberties are granted to the citizens. D. the right to freedom of expression and organization is not curbed. E. media are heavily censored.

media are heavily censored

In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning. A. command B. pure market C. mixed D. centrally planned E. laissez-faire

mixed

The Boldovian government took Sea Lion Inc., a domestic, private shipbuilding firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the shipbuilding industry were raged at this decision of the government. As a result, the government had to reduce the tax burden on all other private shipbuilding firms so that both the state-owned enterprise and private firms could co-exist. According to this information, Boldovia has most likely adopted a _____ economy. A. mixed B. market-based C. command D. laissez-faire E. communist

mixed

In comparison to contracts in a civil law system, contracts drafted under a common law framework tend to be: A. shorter in length. B. more specific. C. more inflexible. D. less expensive. E. less detailed

more specific

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should: A. oppose the rule of law. B. ensure that the economic activity is heavily regulated by the state. C. move toward a market-based system. D. extensively restrict property rights. E. avoid enforcing intellectual property laws.

move toward a market-based system.

In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be _____. A. privatized B. decentralized C. liberalized D. nationalized E. deregulated

nationalized

A _____ grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention. A. copyright B. trademark C. patent D. warranty E. service mark

patent

After the collapse of communism in Dehran, successful business owners often had to pay "protection money" to the mafia or face violent retribution. In the context of property rights, the behavior of the mafia is an example of: A. active violation. B. public action. C. private action. D. boundary spanning. E. industrial espionage.

private action

In the context of property rights, _____ refers to theft, piracy, blackmail, and the like by private individuals or groups. A. private consumption B. Private practice C. privacy tort D. private action E. privacy violation

private action

The sale of state-owned enterprises to independent, nonpublic investors is referred to as: A. privatization. B. nationalization. C. collectivism. D. communalism. E. public action.

privatization

The bundle of 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 are called _____ rights. A. civil B. political C. shareholder D. property E. public

property

When state officials, such as politicians and government bureaucrats, violate property rights by extorting income, resources, or the property itself from property holders, it is described as: A. patents violation. B. public action. C. public servitude. D. private action. E. private governance.

public action

In a _____ economy, all businesses are 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. A. free market B. deregulated C. pure command D. mixed E. laissez-faire

pure command

Strong enforcement of intellectual property laws: A. reduces the piracy (theft) of intellectual property. B. reduces the attractiveness of a country as a market or investment site. C. reduces the investments made by companies on basic research. D. limits creativity and innovation among people. E. prohibits a company from having a monopoly over its breakthrough inventions.

reduces the piracy (theft) of intellectual property

A(n) _____ is built upon the ideals of an individual's right to freedom of expression and organization, a free media, and regular elections. A. autocracy B. representative democracy C. theocracy D. aristocracy E. monocracy

representative democracy

In a _____, individuals periodically elected by citizens form a government to make decisions on behalf of the electorate. A. pure democracy B. communist totalitarianism C. right-wing totalitarianism D. representative democracy E. theocratic totalitarianism

representative democracy

The philosophy behind intellectual property laws is to: A. reward the originator of a new invention, book, musical record, and the like for his or her idea and effort. B. protect the consumers from being subjected to business malpractice. C. safeguard a firm and its officers from being responsible for injury, death, or damage caused by the firm's product. D. eliminate monopoly in international trade. E. ensure that the rights to manufacture, use, or sell an invention are made available to the whole society.

reward the originator of a new invention, book, musical record, and the like for his or her idea and effort.

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted: A. right-wing totalitarianism. B. theocratic totalitarianism. C. representative democracy. D. pure democracy. E. totalitarian democracy.

right-wing totalitarianism

A(n) _____ is a person who believes in public ownership of the means of production for the common good of nation. A. socialist B. capitalist C. individualist D. monarchist E. feudalist

socialist

Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, whereas the laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the: A. economic system of a country is independent of its legal system. B. legal system of a country is not influenced by the prevailing political system. C. legal system does not affect the attractiveness of a country as an investment site or market. D. all the countries have the same legal environments. E. the legal framework of a country reflects the rulers' dominant political ideology.

the legal framework of a country reflects the rulers' dominant political ideology.

Jewish law is an example of a _____ law system. A. autocratic B. civil C. common D. theocratic E. universal

theocratic

A legal system which is based primarily on religious teachings is referred to as the: A. civil law system. B. theocratic law system. C. common law system. D. precedent law system. E. public law system.

theocratic law system

States that limit the freedom of religious expression with laws based on religious principles, most likely follow the political system of: A. theocratic totalitarianism. B. communist totalitarianism. C. right-wing totalitarianism. D. pure democracy. E. representative democracy.

theocratic totalitarianism

As a result of _____ protection, the Nike "Swoosh" logo is protected from being used by any other shoe manufacturer. A. trademark B. affidavit C. patent D. warrant E. writ

trademark

A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as: A. theocratic totalitarianism. B. communist totalitarianism. C. right-wing totalitarianism. D. tribal totalitarianism. E. democratic totalitarianism.

tribal totalitarianism