chapter 2 Flashcards
The political, legal, and technological environment
what are ideologies?
ideas reflecting beliefs and values influencing the behavior and culture of nations and political systems
what are the types of ideologies? list and define.
- individualism: people should be free to pursue economic and political endeavors without restraint
- collectivism: views the needs or goals of society as a whole as more important than individual desires; does not individual as such
- socialism: a moderate form of collectivism in which there is government ownership of instruction, and profit is not the ultimate goal
what does a political system include?
the structures, processes, and activities by which a nation governs itself
what are the two dimensions that that political systems are split on?
- rights of citizens based on a form of govt (democratic to totalitarian)
- Focus of political system on individual vs. collectivism
what is democracy?
system in which government is controlled by citizens either directly or through elections
totalitarianism?
only one representative party which exhibits control over every facet of political and human life
what are the types of political risk
conflict and violence, terrorism and kidnapping, property and seizure, policy changes, local content requirement
what do what conflict and violence arise from?
arise from: people’s resentment toward government, territorial disputes between nations, ethnic, racial, or religious disputes and reduces the ability to obtain materials and equipment, manufacture and distribute product, protect employees’ lives and firm’s assets
what are the types of property seizure? list and define.
- confiscation: forced transfer of assets from a company to the government without compensation
- expropriation: forced transfer of assets from a company to the government with compensation
- nationalization: forced asset transfer to the government of an entire industry
what is the Foreign Corrupt Practices Act?
the FCPA covers bribes;
- US internal revenue service (IRS)
- Securities and Exchange Commission (SEC)
- Justice Department
What are the basic principles of international law
- sovereignty and sovereign immunity
- doctrine of comity
- act of state doctrine
- treatment and rights of aliens
- forum for hearing and settling disputes
what are the 3 types of intellectual property rights?
- patent: a right guaranteed to the inventor
- trade mark: words or symbols that distinguish a product and its manufacturer (“Cocoa-Cola”)
- copyright: give creators of original works the freedom to publish or dispose of them as they choose (“happy birthday to you”)
what are 4 global legal issues?
- standardization: interpreting and applying laws uniformly
- product safety and liability: responsibility for damage, injury, or death
- taxation: income, sales, consumption, and VAT (value-added tax)
- antitrust (anti-monopoly) laws: prevent market sharing, price fixing, and unfair advantage
Friedman view:
a company’s sole responsibility is to maximize profits for its owners (or shareholders) while operating within the law; companies don’t have social obligations
Cultural Relativism:
a company should adopt local ethics where it operates because right and wrong are determined within a cultural context, “when in rome do as the romans do”
