Chapter 3: Politics, Economic, Law Flashcards
What is the definition of the political system?
the system of government in a nation that is included with structures, processes, and activities by which a nation governs itself
What is totalitarianism? What are the 3 features of it?
Is a form of government in which one person or political party exercises absolute control over their own people. The features are imposed authority, lack of constitutional guarantees, and restricted participation
What are the differences between theocratic totalitarianism and secular totalitarianism?
Theocratic totalitarianism is implemented by the state in which only one religion is regulated in that state > Saudi Arabia & Vatican City. On the other hand, secular totalitarianism is a type of government in which the states rely on military and bureaucratic power. There are 3 forms: Communist (NAZI), Tribal (Ethnic Group), Right-wing (Endorse private ownership but no political freedom)
What is democracy? What are its features?
The government is formed by people through the elections which can be stated as pure democracy. There are 5 features which are Freedom of expression; periodic elections; full civil and property rights; minority rights; nonpolitical bureaucracies
What is a centrally planned economy?
An economy that is planned by Government where the government has full control over its resources. In this system, there is no private ownership which affects the product quality and its high price which led to dissatisfaction with customer needs > Cuba & North Korea
What is a mixed economy?
The economic system is where the government and private share ownership in a certain country. However, at some point, the government would intervene in the ownership when the resources are important to national security and stability.
When a country practices a mixed economy, what are the disadvantages that it will get?
It is believed that when a government owns the business it will lack innovations and accountability because the government itself cannot focus only on business matters. Therefore, it will cause slow economic growth in that country.
What is a market economy? What is the role of government if a country applies this system?
A pure market economy is privately
owned all productive activities and the
interaction of supply and demand will
determine the production. The government will take part to encourage free and fair competition between competitors.
What is corporate social responsibility?
A practice of companies going beyond legal obligations to actively balance commitments to investors, customers, other companies, and communities. CSR consists of three layer of activities: traditional philanthropy, risk management, strategic CSR
Explain what is Freidman doctrine.
Friedman does not believe that companies should undertake expenditures beyond those mandated by law and those required for the efficient running of a business. For example, it is not necessary to pay back the community because the manager believes that it will reduce the company’s profit.
What is the Cultural relativist view?
A believe that a company should operate its business in a way that society operates its business. For example, if the area accepts bribery, it will not be a problem to bribe as it is culturally accepted by its country.
What is a doctrine that is stating which MNCs company follows the home country’s regulations in a foreign country?
The righteous belief. For instance, USA’s MNC well-known by ReeBook both in the USA and in foreign countries apply the same standard regulation because they believe that the USA ReeBook regulations are perfect
What is Naive Immoralist belief?
It is a doctrine when an MNC manager sees that the other firms do not apply the ethical norms in the host country so there is no obligation to follow the ethics as well.
What is the difference between the utilitarian and Kantian approach?
Utilitarianism is a situation when a firm promotes the greatest happiness for the greatest number. It can sacrifice specific objects to gain the greatest happiness. For instance, a firm is not willing to cover one HIV-infected employee due to the high bill. Thus, this firm is able to cover all its employees. In contrast, the Kantian approach promotes the equality and dignity for all employees
What is Human Right Focus in Business?
Human rights focus on forming the fundamental moral compass that enables every consumer’s rights to be applied in making decisions. For example, toys that are made in China have been withdrawn from the US market because they harm children.
