Chapter 2: National Differences in Political, Economic, and Legal Systems

civil

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

contract

A(n) ______ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties.

public

Governments that levy excessive taxes or require expensive permits from property holders are both examples of ______ action.

False

History shows that state ownership of the means of production never ran counter to the public interest.

strong protection of property rights democratic political institutions market-based economic system

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

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

If you needed to describe the concept of individualism, you would say that individualism

mixed

In a ______ economy, both private enterprise and some state monopoly co-exist.

the interaction of supply and demand.

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

the ruler's decisions are not questioned by individuals.

In a totalitarian country, you would find that

representative

In a(n) ______ democracy, elected representatives represent the citizens and make decisions on behalf of the electorate.

It is a political system in which rulers govern based on religious rules and principles.

Kent needs to describe theocratic totalitarianism to his classmates. Which of these statements should he use?

liability

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

the government

Public action to violate property rights exists when _____ is responsible for the action.

the United States

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.

legal

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

contract

The body of law that governs oral and written agreements associated with the exchange of goods, services, money and property is known as ____ law.

property

The legal rights regarding the use of a resource by a business or individual are known as _____ rights.

Paris Convention for the Protection of Industrial Property

The members of the World Intellectual Property Organization have signed international treaties designed to protect intellectual property, including the oldest such treaty known as the ______, which dates to 1883.

command

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

True

True or false: Communism is in decline worldwide.

Capitalists take the value created by workers for their own use.

What is an accurate depiction of Karl Marx's arguments on socialism?

Allotment of resources for the overall good of society

What is the objective of a pure command economy?

patent

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

copyright

A ______ refers to a legal right that enables the creator of an original work the right to publish and distribute their work as they see fit.

trademark

A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.

communist

Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.

market

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

a strategy of revolutionary action.

In the early 20th century, communists differed from social democrats in that communists believed in

intellectual

Michael 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.

patent

Peter, a research associate at a biotechnology firm, develops a diagnostic kit for the rapid detection of malaria. In order to prevent his competitors from duplicating his invention, Peter should apply for a

private

Property rights violation that occurs through theft or piracy is an example of _____ action.

political

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

political economy

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

Intellectual

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

Individualism

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

Tribal

______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.

the importance of guaranteeing one's freedom and self-expression

What does individualism emphasize?

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 statement BEST describes a totalitarian system?

command

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

mixed

During the economic downturn of 2008-2009, the U.S. government "bailed out" AIG to prevent that financial institution from collapsing because it felt that if AIG collapsed, it would lead to serious consequences for the entire U.S. financial system. By helping out this troubled firm because it appeared vital to national interests, the U.S. government was acting as a ____ economy.

common

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

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

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

False

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

religious principles.

A country that is ruled based on theocratic totalitarianism is governed based on

censored media denial of civil liberties

A country under totalitarian rule would experience which two of these situations?

Democracy

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

Collectivism

______ refers to a political system that values the needs of society over that of an individual.

Privatization

______ refers to the process of selling state-owned enterprises to private investors.

mixed economy market economy command economy

What are the three broad types of economic systems?

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

Which of the following statements about political systems is TRUE?

A trademark

Which of these intellectual property protections should Juliet, the CEO of a fast food restaurant chain, apply for to prevent competitors from copying her restaurant logo?

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

Which statement accurately describes a civil law system?

False

According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.

the individual

According to individualism, economic interests should be dictated by _____.

product liability

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

The pure form of democracy believes that laws and policies should be made directly by citizens.

Carrie's professor asked her to describe democracy. Which of these statements should she use?

restricts an individual's right to do something on the grounds that it runs counter to the "good of society".

Collectivism refers to a political system that

They believed in achieving socialism through non-violent means.

What statement characterizes social democrats?

economic system political system legal system

What three systems make up the political economy of a country?

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

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

private

Organized crime, such as the "Russian Mafia" that existed following the collapse of communism in Russia and extorted money from businesses is an example of _____ action.

African

Which countries have experienced tribal totalitarianism rule?

they are subjected to various forms of protection from country to country.

When considering how intellectual property rights are viewed around the world, it can be said that

Foreign Corrupt Practices Act

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

Jude, a musician who is composing his maiden album

Which one of these individuals should apply for a copyright?

property

Sharon's company developed a new method for sealing medication bottles and has decided to license their patented method to the leading drug manufacturers in the United States. Sharon's company has the legal right to do this based on the _____ rights they have for this method.