International Business Ch. 2: National Differences in Political, Legal and Economic Systems
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 individuals should apply for a copyright?
Jude, a musician who is composing his maiden album
What statement characterizes social democrats?
They believed in achieving socialism through non-violent means.
What condition must be present to create an ideal representative democracy?
a nonpolitical state bureaucracy
Which countries have experienced tribal totalitarianism rule?
african
What is the objective of a pure command economy?
allotment of resources for the overall god of society
A _____ law system is based on a detailed set of laws organized into codes.
civil
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
Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.
communist
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
Aristotle (384- 322 BC) argued in favor of individualism by noting that
diversity and private ownership are beneficial to society
True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.
false
Compared to the United States, the piracy of computer software is _____ in China.
higher
______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.
individualism
______ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.
intellectual
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
The most widely practiced theocratic legal system in the modern world is ______ law.
islamic
In a pure ______ economy, all productive activities are owned privately -- not by the state.
market
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.
mixed
In a ______ economy, both private enterprise and some state monopoly co-exist.
mixed
Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.
philosophers and soldiers
Lax enforcement of intellectual property rights in the computer software industry has lead to stealing of software applications. This illegal process is also known as
piracy
In a common law system, ______ refers to cases that have come before the courts in the past.
precedent
______ refers to the process of selling state-owned enterprises to private investors.
privatization
In a theocratic law system, the law is based on
religious teachings
In a(n) ______ democracy, elected representatives 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 you needed to describe 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
What does individualism emphasize?
the importance of guaranteeing one's freedom and sel-expression
In a pure market economy, production of goods is determined by
the interaction of supply and demand
_____ often back(s) right-wing totalitarianism governments.
the military
A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.
trademark
To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards. What is one of those safeguards?
universal adult suffrage
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 country under totalitarian rule would experience which situations?
-denial of civil liberties -censored media
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.
Paris Convention for the Protection of Industrial Property
Which Greek philosopher is credited with advocating the origins of collectivism?
Plato
A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.
common
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 statement BEST defines right-wing totalitarianism?
it restricts political freedom, frequently on the grounds that it would lead to the rise of communism, but does allow some economic freedom
The ______ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them.
legal
A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.
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
patent
The term ______ is used to stress that the political, economic, and legal systems of a country are connected.
political economy
A country that is ruled based on theocratic totalitarianism is governed based on
religious principles
In the early 20th century, communists differed from social democrats in that communists believed in
strategy of revolutionary action
According to individualism, economic interests should be dictated by _____.
the individual
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 are the three broad types of economic systems?
-mixed economy -market economy -command economy
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 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?
a trademark
______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.
democracy
What three systems make up the political economy of a country?
legal, economic and political systems
According to Aristotle's philosophy on individualism,
private property receives greater care compared to communal property
When discussing a common law system, a country's legal history is known as ______.
tradition
T/F: Communism is in decline worldwide
true
True or false: Patents provide a reassurance for companies to pursue extensive research projects.
true
______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.
tribal
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
______ refers to a political system that values the needs of society over that of an individual.
collectivism
The system of government in a nation is called the ______ system.
political
When considering how intellectual property rights are viewed around the world, it can be said that
they are subjected to various forms or protection from country to country
T/F: According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.
false
T/F: History shows that state ownership of the means of production never ran counter to the public interest.
false
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.
intellectual
In a totalitarian country, you would find that
the ruler's decisions are not questioned by individuals
What is an accurate depiction of Karl Marx's arguments on socialism?
Capitalists take the value created by workers for their own use.
