International Business Chapter 2

Product safety laws

set certain standards to which a product must adhere

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.

Intellectual property

A product of the intellect, such as an expressed idea or concept, that has commercial value. ( anything made from using intelligence)

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

A strategy of revolutionary action

Socialism

A system in which society, usually in the form of the government, owns and controls the means of production.

Representative Democracy

A system of government in which citizens elect representatives, or leaders, to make decisions about the laws for all the people.

Civil Law System

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

Which continent has experienced tribal totalitarianism rule

Africa

Market economy

All goods are owned by the state

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

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

Capitalists take the value created by workers for their own use

____ refers to a political system that values the needs of society over that of an indivdual

Collectivism

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

Command

An ___ is a document that specifies the conditions under which an exchange is to occur, detailing the rights and obligations of the involved parties

Contract

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

Democracy

Trademark

Designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products( example apple, google, Dior)

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

False

Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system

False

Patent

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

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

Individualism

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

Individualism

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

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

Intellectual

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

Common law

a system of law based on precedent and customs and tradition

Theocratic Law System

a system of law based on religious teachings

Communist Totalitarianism

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

what is the objective of a pure command economy

allotment of resources for the overall good of society

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

political system

system of government in a nation

contract law

the body of law that governs contract enforcement

Copyright

the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.

Public action to violate property rights exist when ___ is responsible for the action

the government

According to individualism, economic interests should be dictated by _____

the individual

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

the interaction of supply and demand

Property rights

the 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

In a totalitarian country, you would find that

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

3 main types of legal systems

common law, civil law, theocratic law

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

contract

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

copyright

Individualism

giving priority to one's own goals over group goals and defining one's identity in terms of personal attributes rather than group identifications

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

legal

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

liability

In a ____ economy, both private enterprise and some state monopolies co-exist

mixed

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

patent

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

private

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

private

In an ______ democracy, elected officials represent the citizens and make decisions on behalf of the electorate

representative

Collectivism refers to a political system that

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

If all 3 things are equal, what 3 environments would make a country more attractive as a place to do business in

Democratic political institutions, market-based economic system, and strong protection of property rights

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

False

Governments that levy excessive taxes or require expensive permits from property holders are both examples of ___ action to violate property rights

Public

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.

private

Corner Coffee makes coffee posts. Last year 30 people received serious burns when water leaked down the side of the carafe of a Corner Coffeemaker while the coffee was brewing. Even tho Corner Coffee pulled this coffee pot from production, all 30 people who were injured have filed a criminal case against the company. These customers can hold the company responsible based on ___ law

Product liability

Theocratic Totalitarianism

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

product liability

involves holding a firm and its officers responsible when a product causes injury, death, or damage

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

Patent

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

Collectivism

a political system that emphasizes collective goals as opposed to individual goals

what3 things makes a nation attractive for international business?

1) a nation with democratic political institutions 2) A market- based economic system 3) a strong legal system

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

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

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

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

which one of these people should apply for a copyright

Jude, a musician who is composing his maiden album

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

Market

What are the 3 broad types of economic systems?

Market, command, and mixed economy

During the economic downturn of the 2008-2009, the us government bailed out AIG to prevent that financial institution from collapsing bc 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 us government was acting as a ____ economy

Mixed

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

what 3 systems make up the political economy of a country?

Political system, economic system, and legal system

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

Privatization

Shondra'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. Her company has the legal right to do this based on the ____ rights

Property

Public action to violate property rights exist when ____ is responsible for the action

The government

Common economy

The government plans the goods and services that a country produces

What does individualism emphasize

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

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

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

What statement characterizes social democrats of the early 20th century?

They believed in achieving socialism through non-violent means

An ___ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source

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

Trademark

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

Tribal

____totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power

Tribal

True/ False Communism is in decline worldwide

True

Which of the following statements about political systems is TRUE?

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

mixed economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.( simply a mix between common and market)

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

Censored media and denial of civil liberties

The 3 broad types of economic systems include a market economy, a mixed economy and an ______ economy

Command

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

Common

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

Communist

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

Communist

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

Property

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

Religious principles

Contract

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