Chapter 3 Summary Flashcards
Describe the key features of each form of political system
Totalitarian - Individuals govern w/o the support of people. Control the peoples lives and do not tolerate opposing viewpoints.
Theocratic - laws based on religion with totalitarian beliefs.
Democracy - leaders are elected by the people or by their representatives. Strives to provide freedom of expression, periodic elections, civil and property rights, and minority rights.
Explain how 3 types of economic systems differ
Centrally planned economy - gov’t owns land, factories and economic resources. Plans all economic activities. The needs of the Group are above the individual.
Mixed Economy - land, factories, economic resources are split between private and gov’t ownership.
Market Economy - Private individuals or businesses own most of the land, factories, and economic resources. The group benefits from individual incentives and rewards. Gov’t is subdued, and prices are set by supply and demand.
Summarize the main elements of each type of legal system
Common Law - based on the country’s legal history (tradition), past cases in court, and how laws are applied per situation.
Civil Law - based on written rules and statutes that constitute a legal code from which flow all obligations, responsibilities, and privileges.
Theocratic law - based on religious teachings.
Outline the global legal issues facing international firms.
Firms must:
-Protect their property rights
-Protect intellectual property (against Trademarks/copyrights)
-Know product liability laws
-Know taxation requirements
-Know how Antitrust laws influence operations
Describe the main issues of global ethics and social responsibility
Managers often encounter different views toward bribery and corruption in a host country and must abide by stringent accounting standards and reporting practices.
Firms can guarantee good working conditions and protect human rights by monitoring the actions of their own employees and those of companies with whom they do business.
Companies active in developing countries can foster social responsibility in those markets by encouraging fair-trade practices.
Businesses can pursue green initiatives that reduce operational costs and boost profits protecting the environment.
