Chapter 6 Flashcards
It encompasses factors and trends related to governmental activities, specific laws and regulations that affect the global firms
Political-Legal Environment
It is closely tied to social and economic environements
Political-Legal Environment
It is a set of laws and regulations, including processes by which its laws are enacted and enforced in ways its courts hold parties accountable for their actions.
Legal System
Legal systems are frequently influenced by political moods and upsurges of _____.
Nationalism
The devotion of people to their nation’s interest and advancement
Nationalism
Have their origin in the Roman legal
tradition.
Civil Law
Nations with civil law systems
have ______.
comprehensive, frequently updated legal codes
secondary source in these
jurisdictions (civil law legal system)
Case Law
while they often have statutes, rely
more on precedent, judicial decisions that have already
been made.
Common Law System
are adversarial, rather
than investigatory, with the judge moderating between two
opposing parties.
Common Law System
are based on patterns of
behavior (or customs) that have come to be accepted as
legal requirements or rules of conduct within a particular
country
Customary law systems
The laws of customary legal systems are usually
unwritten and are often dispensed by elders, passed
down through generations.
Customary law systems
can be
found in mixed legal system jurisdictions, where they’ve
combined with civil or common law.
Customary law systems
are systems where the law
emanates from texts or traditions within a given religious
tradition.
Religious Legal Systems
refer to legal systems where two or
more of the above legal systems work together.
Mixed Legal System
The practice of ____ originated in eleventh-century England and was adopted in that nation’s territories worldwide.
common law
A common three elements:
Tradition
Precedent
Usage
A country’s legal history
Tradition
Past cases that have come before the courts
Precedent
How laws are applied in specific situations.
Usage
The common-law tradition prevails in these countries
Australia, Britain, Canada, Ireland, New Zealand, the United States, some nations in Asia and Africa
can be traced to Rome in the fifth century B.C.
It is the world’s oldest and most common legal tradition.
Civil law
A ____ is based on a detailed set of written rules and statutes that constitute a legal code.
_____ can be less adversarial that common law because there tends to be less need to interpret what a particular law states.
Civil Law
Civil law is practiced in these countries:
Cuba, Puerto Rico, Quebec, all of Central and South America, most of Western Europe, and many nations in Asia and Africa.
A legal tradition based on religious teachings is called
Theocratic Law.
Three prominent theocratic legal systems are
Islamic, Hindu, and Jewish law.
Companies must adapt to dissimilar legal systems because there is no clearly def ined body of international law that all nations accept. There is a movement toward _____ the interpretation and application of laws in more that one country, but this does not involve standardizing entire legal systems
standardizing, standardization
International Organizations that promote standardization include
United Nations (UN),
the Organization for Economic Cooperation and Development (OECD), and the
International Institute for the Unification of Private Law.
includes the structures, processes, and activities by which a nation governs itself.
A political system
Japan’s political system, for instance, features a _____ that chooses a prime minister who will carry out the operations of government with the help of Cabinet ministers.
Diet (Parliament)
The belief that every aspect of people’s lives must be controlled for a nation’s political system to be effective.
Totalitarianism
Totalitarian political systems include authoritarianism regimes such as _______
communism and fascism.
The belief that only individuals and private groups should control a nation’s political activities.
Anarchism
The belief that both private and public groups play important roles in a nation’s activities.
Pluralism
Pluralistic political systems include .
democracies,
constitutional monarchies and
some aristocracies
is a political system in which government leaders are elected directly by wide participation of the people or by their representatives.
Democracy
Two types of Democracy
Direct Democracy
Representative Democracy
Technically, every citizen has an equal say in the workings of government. (The qualifications for being considered a citizen are completely different.)
Citizens could show up at a meeting, and then directly participate in the governing process, and the process of making laws.
Direct Democracy
a type of democracy in which citizens elect individuals from groups to represent their political views
Representative Democracy
is a political system in which the government remains mostly subject to those governed.
republic
Types of republic
Crowned (a constitutional monarchy might be considered acrowned republic)
Single Party
Capitalist
Federal (the United States is often referred to as afederal republic) Parliamentary
the head of state until he or she abdicates or until death. In many cases a ____ is the final word in government.
Monarchy
The type that many of us think of as common is the_____, in which the monarch truly has the ultimate say in matters of government.
absolute monarchy
In this type of monarchy, the ruler is the head of state, but a constitution limits the power, and others make laws.
Constitutional Monarch
is based on the ideology of communism as taught byMarxand/orLenin
communist state
Another authoritarian form of government is the.
Dictatorship
One of the more common types of dictatorship is the______ in which a military organization governs, running the political system.
military dictatorship,
generally features the private ownership of the means of production (capital) and amarket economyfor coordination.
Capitalism
Some criticshave applied the term______to the power imbalance between multi-national corporations operating in afree marketvs. seemingly impoverished people indeveloping countries.
neo-colonialism
(all of which featuresocial ownershipof themeans of production) can be subdivided by their coordinating mechanism (planning and markets) intoplanned socialistandmarket socialistsystems.
Socialist economic systems
is a hypothetical stage of socialist development articulated by Karl Marx as “second stage socialism” inCritique of the Gotha Program, whereby the economic output is distributed based on need and not simply on the basis of labor contribution.
Communism
Belief that social and economic equality can be obtained only by establishing an allpowerful Communist Party by granting the government ownership and control over all types of economic activity.
Communism
Belief that social and economic equality is obtained through government ownership and regulation of the means of production.
Socialism
generally refers to market economies with substantial state interventionism and/or sizable public sector alongside a dominant private sector
Mixed economy
Theoretically, it may refer to an economic system that combines one of three characteristics: public and private ownership of industry, market-based allocation with economic planning, or free markets with state interventionism.
Mixed economy
The likelihood that a society will undergo political changes that negatively affect local business activity.
Political risk
Types of Political Risk
Macro risk
Micro risk
threatens the activities of all domestic and international companies in every industry.
Macro Risk
threatens companies within a particular industry (or more narrowly defined group)
Micro risk
we classify political risk according to actions or events that cause it to rise, including:-
conflict and violence
terrorism and kidnapping
property seizure
policy changes
local content require ments
Property Seizure
Confiscation
Expropriation
Nationalization
The forced transfer of assets from a company to the government without compensation is called
confiscation.
allows the U.S. businesses to sue companies from other nations that use their property that Cuba confiscated in its 1969 communist revolution.
1996 Helms-Burton Law
The forced transfer of assets from a company to the government with compensation is called .
expropriation
means government takeover of an entire industry
nationalization
Property that results from people’s intellectual talent is called
intellectual property.
property right granted to the inventor of a product or processes that excludes others from making, using or selling the invention.
PATENT
property right in the form of words or symbols that distinguish a product and its manufacturer.
TRADEMARK
property right giving creators of original works the freedom to publish or dispose of them as they choose.
COPYRIGHT
Copyrights are protected under the _____, which is an international copyright treaty to which United States is a member, and the 1954 Universal Copyright Convention.
Berne Convention
Fake goods
Counterfeit
describes the act of reproducing movies, music, books or other copyrighted works without permission from the copyright owner.
“piracy”
are regulations that monitor the distribution ofeconomicpower in business, making sure that healthy competition is allowed to flourish and economies can grow.
Antitrust laws
Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called
antitrust (anti monopoly) laws.
the three pivotal laws in the history of antitrust regulation.
The Sherman Commission Act,
the Federal Trade Act and
the Clayton Act are
