Module 2

Question 1

a term that stresses that the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being

Answer 1

political economy

Question 2

the system of government in a nation

Answer 2

political system

Question 3

stresses the primacy of collective goals over individual goals- traced to Greek philosopher Plato

Answer 3

collectivism

Question 4

socialism can only be achieved through violent revolution and totalitarian dictatorship

Answer 4

communism

Question 5

socialisms is achieved through democratic means

Answer 5

social democrats

Question 6

refers to the philosophy that an individual should have freedom in his economic and political pursuits traced to Aristotle

Answer 6

individualism

Question 7

a political system in which government is set/decided by the people, exercised either directly or through elected representatives

Answer 7

democracy

Question 8

form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties

Answer 8

totalitarianism

Question 9

found in states where the communist monopolizes power

Answer 9

communist totalitarianism

Question 10

found in states where political power is fueled by religious principles

Answer 10

theocratic totalitarinism

Question 11

particular tribes fuel political powers

Answer 11

tribal totalitrianism

Question 12

permits some individual freedom but restricts individual people

Answer 12

right-wing totalitarianism

Question 13

political ideology linked to economic systems

Answer 13

market economies
command economies
mixed economies
state-directed economy

Question 14

all productive activities are privately owned and production is determined by interaction of supply and demand

Answer 14

market economies

Question 15

government plans the goods and services that a country produces, quantity that is produced and the prices at which they are sold at

Answer 15

command economies

Question 16

the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource can be violated through:
-private action: theft, piracy
-public action: excessive taxation, bribes or blackmail

Answer 16

property rights

Question 17

making it illegal for US companies to bribe foreign government officials to obtain or maintain business over which that foreign officials have authority

Answer 17

foreign corrupt practices act

Question 18

property that is produced of intellectual activity “protected through”

Answer 18

intellectual property

Question 19

exclusive rights to the property for a defined period of time

Answer 19

patents

Question 20

exclusive legal rights of authors to publish and disperse their products

Answer 20

copyright

Question 21

design nd names by which merchants designate their work

Answer 21

trademarks

Question 22

set certain standards to which a product must adhere

Answer 22

product safety laws

Question 23

involves holding a firm and its officers responsible when a product cause injury/harm

Answer 23

product liability

Question 24

refers to its political, economic, and legal systems

Answer 24

political economy

Question 25

the rules or laws that regulate behavior

Answer 25

economic systems

Question 26

three main types of legal systems

Answer 26

COMMON LAW
CIVIL LAW
THEOCRATIC LAW

Question 27

based on tradition, precedent and customs

Answer 27

common law (uk)

Question 28

based on a very detailed set of laws organized into codes

Answer 28

civil law (europe)

Question 29

based on religious teachings

Answer 29

theocratic law (saudi)

Question 30

CIGS

Answer 30

contracts for the international sale of goods

Question 31

The only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. His own good, either physical or moral, is not a sufficient warrant –

Answer 31

John Stuart Mill

Question 32

An individual who intends his own gain is “led by an invisible hand to promote an end which was no part of his intention. Nor is it always worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it. I have never known much good done by those who effect to trade for the public good”

Answer 32

adam smith

Question 33

Without private property, no man will be seen to be liberal and no man will ever do any act of liberality; for only in the use of money is liberality made effective

Answer 33

Aristotle

Question 34

state directly influences investment activities of private enterprise through “industrial policy.”

Answer 34

state-directed policy

Question 35

a balance of command and market economy

Answer 35

mixed economy

Question 36

National Differences in Political Economy Businesses must observe

Answer 36

-Home country laws
-Host country laws
-International Laws and Treaties
-Different Legal Systems
-Common Law
-Civil Law
-Theocratic Law

Question 37

A specifies
-conditions under which an exchange will happen
-rights/obligations of parties

Answer 37

contract

Question 38

It is based on a country’s legal system.
Systems differ based on legal tradition
-common law system
-civil law system

Answer 38

contract law

Question 39

need to be resolved based on a particular legal system
-Which country’s? Home? Host?

Answer 39

disputes