Political And National Economic Environment

Question 0

Economic systems 2 Command Economy

Answer 0

Government plans economy entirely (communist economies)

Question 1

Economic systems 1 Market Economy

Answer 1

All activities are privately owned => what is produced is determined by supply and demand

Question 2

Economic systems 3 Mixed economy

Answer 2

Both elements of market economy and command economy, most present countries are mixed economies

Question 3

Three main types of legal systems

Answer 3

COMMON LAW = based on traditional, historical laws
CIVIL LAW = based on a detail set of laws organise into codes (e.g. Germany, France,)
THEORETIC LAW = the law based on religious teachings (Islamic law)

Question 4

Nature of economic transformation

Answer 4

Deregulation = removing legal restrictions
Privatisation = transfers the ownership of the state into private investors
Creating a legal system to guard property rights

Question 5

Risks of doing business in a country

Answer 5

Political risk
Economic risk
Legal risk

Question 6

Intellectual property protection

Answer 6

Patents copyrights trade marks

Question 7

Major Economic groups

Answer 7

• NAFTA (US, canada, Mexico)
• EU
• MERCOSUR (Argentina, chile,Columbia,equator,Peru)
• ASEAN (Myanmar, Philippines, Singapore, Thailand, Vietnam)
• APEC