chapter 2

Question 1

what are political systems

Answer 1

the system of gov in a nation

Question 2

how is the political system assessed

Answer 2

emphasis on collectivism or individualism
degree to which they are democratic or totalitarian

Question 3

what is collectivism

Answer 3

emphasizes collective goals over individual goals

Question 4

what is socialism

Answer 4

Public ownership of the means of production for the common good.
Karl Marx: the few benefit at the expense of the many in a capitalist society where individual freedoms are not restricted.

Question 5

what is individualism

Answer 5

-An individual should have freedom in economic and political pursuits.
-The interests of the individual should take precedence over the interests of the state.

Question 6

what are the two tenets of individuals

Answer 6

-Guarantee of individual freedom and self-expression.
-Welfare of society best served by letting people pursue their own economic self-interest.

Question 7

what is democracy

Answer 7

government is by the people, exercised either directly or through elected representatives.

Question 8

what is totalitarianism

Answer 8

one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Question 9

democracy and —- go hand in hand

Answer 9

individualism

Question 10

collectivism and — go hand in hand

Answer 10

totalitarianism

Question 11

what is a representative democracy

Answer 11

citizens periodically elect individuals to represent them.

Question 12

what are the safeguards in constitutional law for a representative democracy

Answer 12

freedom of expression
free media
universal adult suffrage
fair court system

Question 13

what is communist totalitarianism

Answer 13

socialism can be achieved only through a totalitarian dictatorship.

Question 14

what is theocratic totalitarianism

Answer 14

monopolized by a party, group, or individual that governs according to religious principles.

Question 15

what is tribal totalitarianism

Answer 15

a party, group, or individual that represents the interests of a particular tribe monopolizes political power.

Question 16

what is right wing totalitarianism

Answer 16

generally permits individual economic freedom but restricts individual political freedom, including free speech, on the ground that it would lead to the rise of communism.

Question 17

what are pseudo democracies

Answer 17

-Lie between pure democracies and complete totalitarianism systems.
-Authoritarian elements have captured some or much of the machinery of state and use this to deny basic political and civil liberties.

Question 18

what are market economies

Answer 18

-are productive activities are privately owned
production is determined by supply and demand
- to work, supply cant be restricted

Question 19

what is the role of gov in market economies

Answer 19

Role of government is to encourage vigorous free and fair competition.

Question 20

what are command economies

Answer 20

-Government plans the goods and services, quantity and price, then allocates them for “the good of society.
-All businesses are state owned.
-No incentive for individuals to look for better ways to serve needs.

Question 21

where are command economies found

Answer 21

communist countries

Question 22

what are mixed economies

Answer 22

-Some sectors are privately owned, some are government owned.
-Government may aid troubled firms whose operations are vital to national interests.

Question 23

what are legal systems

Answer 23

refers to the laws that regulate behaviour , the process through which these laws are enforced,

Question 24

what are the 3 types of legal systems

Answer 24

common law, civil law, theocratic law

Question 25

what is common law based on

Answer 25

common law is based on tradition, precedent and customs

Question 26

what is tradition

Answer 26

refers to a countrys legal histroy

Question 27

what is precedent

Answer 27

cases that come before the courts in the past

Question 28

what are customs

Answer 28

ways in which the laws are applied in specific situations

Question 29

what is civil law based on

Answer 29

based on detailed set of laws organized into codes

Question 30

what do justices in a civil law system do

Answer 30

they have less flexibility, they cannot interpret the law they can only apply it as it is

Question 31

what do justices in the common law system do

Answer 31

they can interpret the law and apply it in a way they see fit

Question 32

what is theocratic law

Answer 32

theocratic law system is one that is based on religious teachings

Question 33

what is the main difference in common law and civil law

Answer 33

the way they approach contract law

Question 34

what is contract law

Answer 34

the body of law that governs contract enforcement

Question 35

what is a contract

Answer 35

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

Question 36

how does common law enforce contract laws

Answer 36

common law is ill specific so contracts under common law need to be extremely detailed

Question 37

how does civil law conduct contract law

Answer 37

contracts under civil law are much shorter and less specific because many issues are already covered in the civil code

Question 38

where is it more expensive to draw up a contract

Answer 38

under common law systems

Question 39

what happens to contracts drawn during international trade

Answer 39

they are subject to the UN convention of contracts for the international sale of goods CISG

Question 40

what are property rights

Answer 40

refer to the legal rights over the use to which a resource is put and over the use made of any income that is derived from that resource

Question 41

what are the 2 ways in which property rights can be violated

Answer 41

through private action and through public action

Question 42

what is private action

Answer 42

violations of property rights that refer to theft, piracy, blackmail by private individuals or groups

Question 43

what is public action

Answer 43

a violation of property rights that occurs when public officials extort income, resources, or the property itself from the property holder

Question 44

what is the foreign corrupt practices act (FCPA)

Answer 44

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

Question 45

what are product safety laws

Answer 45

laws that set a certain safety standard to which products must adhere

Question 46

what is product liability

Answer 46

involves holding a firm and its officers responsible for if a product causes injury, death or damage.

Question 47

what did the Organisation for economic cooperation and development (OECD) adopt

Answer 47

the Convention on Combating bribery of foreign public officials in international business transactions

Question 48

what is the (convention on Combating bribery of foreign public officials in international business transactions)

Answer 48

a convention that obliges the member states to make the bribery of foreign officials a criminal offense

Question 49

what is intellectual property

Answer 49

refers to property that is the product of intellectual activity

Question 50

what are patents

Answer 50

documents that grant the inventor of a new product of process exclusive right for a defined period to the manufacture use or sale of that invention

Question 51

what are copyrights

Answer 51

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

Question 52

what are trademarks

Answer 52

designs and names officially registered by which merchants or manufacturers can differentiate their products

Question 53

what is the world intellectual property organization

Answer 53

organization in which members have signed international treaties designed to protect intellectual property

Question 54

macro environment influences the market attractiveness through, why

Answer 54

through which political, economic and legal systems they have. what are the ethical implications of doing business in a country with a totalitarian political system with denied human rights, lots of corruptopn and bribes are necessary to do full business

Question 55

what is the ideal macro environment for market attractiveness

Answer 55

democratic political system, market based economic system, stong legal system that protects property rights and limits corruption