International Business - National Differences in Political Economy

Although many countries have stringent intellectual property regulations on their books, the enforcement of these regulations has often been lax. This has been the case even among many of the 185 countries that are now members of the ________, all of which have signed international treaties designed to protect intellectual property.

World Intellectual Property Organization

The ________ associated with doing business in a country are a function of that country's political, economic, and legal systems.

benefits, costs, and risks

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

civil

A political system that prioritizes the needs of the society over individual freedoms is called

collectivism

When ________ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

collectivism

In a(n) ________ 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.

command

Manchu believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. Manchu was likely a

communist

Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?

copyright

One key component of a country's legal system is

defining the rights and obligations of those involved in business transactions.

People's right to protest on issues of accountability in public expenditure would be possible in a ________ political setup.

democratic

Plato ________; he believed that society should be stratified into classes, with those best suited to rule administering society for the benefit of all.

did not equate collectivism with equality

Company Zee has been found guilty of manufacturing a product that caused harm to its users, violating criminal liability laws. Which of the following is the most likely outcome for Company Zee?

fines or imprisonment

Which of the following is a feature of a democracy?

governance by people or elected representatives

A common law system is different from a civil law system because

in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.

Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?

individualism

Which of the following is the most widely practiced theocratic legal system in the world today?

islamic law

A civil law system tends to be less adversarial than a common law system because the

judges' decisions are based on detailed legal codes.

In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.

market

In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

mixed economies

Which of the following is an example of intellectual property?

music score

Antitrust laws in the United States are designed to

outlaw monopolies.

In the 1970s, the United States ________, which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.

passed the Foreign Corrupt Practices Act

A ________ grants the inventor of a new product or process exclusive rights for a defined period of time to the manufacture, use, or sale of that invention.

patent

The research and development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of its product. To protect its product, the company is now seeking a

patent

Interdependent political, economic, and legal systems of a country make up its

political economy

In common law, ________ refers to cases that have come before the courts in the past.

precedent

Which of the following area of international trade is regulated by the Foreign Corrupt Practices Act?

preventing bribery and unethical acts in the conduct of international business

The abolition of ________ in a command economy means there is no incentive for individuals to look for better ways to serve consumer needs.

private ownership

In several Western democracies, the poor performance of state-owned enterprises, because of protection from competition and guaranteed government financial support, led to

privatization

In a pure market economy,

production is determined by the interaction of supply and demand.

Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called

public action

________ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.

right-wing totalitarianism

Private action refers to

theft, piracy, blackmail, and the like by private individuals or groups.

_______ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

tribal totalitarianism

________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles

Theocratic totalitarianism

Which of the following statements about the legal systems of countries is true?

They can affect the attractiveness of a country as an investment site or market.

Systems that emphasize collectivism tend toward

Totalitarianism

Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?

Adam Smith

________ argued that individual diversity and private ownership are desirable.

Aristotle

The ________ makes it illegal for American companies to bribe a foreign government official in order to obtain or maintain business over which that foreign official has authority, and requires all publicly traded companies to keep detailed records that would reveal whether a violation of the act has occurred.

Foreign Corrupt Practices Act (FCPA)

Which of the following statements about individualism is true?

Individualism and democracy go hand in hand.

Which of the following statements about the Trade-Related Aspects of Intellectual Property Rights (or TRIPS) agreement is true?

It obliged WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

Modern socialists trace their intellectual roots to ________, although socialist thought clearly predates this individual.

Karl Marx

The TRIPS agreement was designed to

Oversee a much stricter enforcement of intellectual property regulations

Which of the following is a reason that command economies tend to stagnate?

The abolition of private ownership means there is no incentive for individuals to look for better ways to serve consumer needs.