Chapter 6

Question 1

It encompasses factors and trends related to governmental activities, specific laws and regulations that affect the global firms

Answer 1

Political-Legal Environment

Question 2

It is closely tied to social and economic environements

Answer 2

Political-Legal Environment

Question 3

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.

Answer 3

Legal System

Question 4

Legal systems are frequently influenced by political moods and upsurges of _____.

Answer 4

Nationalism

Question 5

The devotion of people to their nation’s interest and advancement

Answer 5

Nationalism

Question 6

Have their origin in the Roman legal
tradition.

Answer 6

Civil Law

Question 7

Nations with civil law systems
have ______.

Answer 7

comprehensive, frequently updated legal codes

Question 8

secondary source in these
jurisdictions (civil law legal system)

Answer 8

Case Law

Question 9

while they often have statutes, rely
more on precedent, judicial decisions that have already
been made.

Answer 9

Common Law System

Question 10

are adversarial, rather
than investigatory, with the judge moderating between two
opposing parties.

Answer 10

Common Law System

Question 11

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

Answer 11

Customary law systems

Question 12

The laws of customary legal systems are usually
unwritten and are often dispensed by elders, passed
down through generations.

Answer 12

Customary law systems

Question 13

can be
found in mixed legal system jurisdictions, where they’ve
combined with civil or common law.

Answer 13

Customary law systems

Question 14

are systems where the law
emanates from texts or traditions within a given religious
tradition.

Answer 14

Religious Legal Systems

Question 15

refer to legal systems where two or
more of the above legal systems work together.

Answer 15

Mixed Legal System

Question 16

The practice of ____ originated in eleventh-century England and was adopted in that nation’s territories worldwide.

Answer 16

common law

Question 17

A common three elements:

Answer 17

Tradition
Precedent
Usage

Question 18

A country’s legal history

Answer 18

Tradition

Question 19

Past cases that have come before the courts

Answer 19

Precedent

Question 20

How laws are applied in specific situations.

Answer 20

Usage

Question 21

The common-law tradition prevails in these countries

Answer 21

Australia, Britain, Canada, Ireland, New Zealand, the United States, some nations in Asia and Africa

Question 22

can be traced to Rome in the fifth century B.C.
It is the world’s oldest and most common legal tradition.

Answer 22

Civil law

Question 23

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.

Answer 23

Civil Law

Question 24

Civil law is practiced in these countries:

Answer 24

Cuba, Puerto Rico, Quebec, all of Central and South America, most of Western Europe, and many nations in Asia and Africa.

Question 25

A legal tradition based on religious teachings is called

Answer 25

Theocratic Law.

Question 26

Three prominent theocratic legal systems are

Answer 26

Islamic, Hindu, and Jewish law.

Question 27

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

Answer 27

standardizing, standardization

Question 28

International Organizations that promote standardization include

Answer 28

United Nations (UN), the Organization for Economic Cooperation and Development (OECD), and the International Institute for the Unification of Private Law.

Question 29

includes the structures, processes, and activities by which a nation governs itself.

Answer 29

A political system

Question 30

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.

Answer 30

Diet (Parliament)

Question 31

The belief that every aspect of people’s lives must be controlled for a nation’s political system to be effective.

Answer 31

Totalitarianism

Question 32

Totalitarian political systems include authoritarianism regimes such as _______

Answer 32

communism and fascism.

Question 33

The belief that only individuals and private groups should control a nation’s political activities.

Answer 33

Anarchism

Question 34

The belief that both private and public groups play important roles in a nation’s activities.

Answer 34

Pluralism

Question 35

Pluralistic political systems include .

Answer 35

democracies, constitutional monarchies and some aristocracies

Question 36

is a political system in which government leaders are elected directly by wide participation of the people or by their representatives.

Answer 36

Democracy

Question 37

Two types of Democracy

Answer 37

Direct Democracy Representative Democracy

Question 38

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.

Answer 38

Direct Democracy

Question 39

a type of democracy in which citizens elect individuals from groups to represent their political views

Answer 39

Representative Democracy

Question 40

is a political system in which the government remains mostly subject to those governed.

Answer 40

republic

Question 41

Types of republic

Answer 41

Crowned (a constitutional monarchy might be considered a crowned republic) Single Party Capitalist Federal (the United States is often referred to as a federal republic) Parliamentary

Question 42

the head of state until he or she abdicates or until death. In many cases a ____ is the final word in government.

Answer 42

Monarchy

Question 43

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.

Answer 43

absolute monarchy

Question 44

In this type of monarchy, the ruler is the head of state, but a constitution limits the power, and others make laws.

Answer 44

Constitutional Monarch

Question 45

is based on the ideology of communism as taught by Marx and/or Lenin

Answer 45

communist state

Question 46

Another authoritarian form of government is the .

Answer 46

Dictatorship

Question 47

One of the more common types of dictatorship is the ______ in which a military organization governs, running the political system.

Answer 47

military dictatorship,

Question 48

 generally features the private ownership of the means of production (capital) and a market economy for coordination. 

Answer 48

Capitalism

Question 49

Some critics have applied the term ______ to the power imbalance between multi-national corporations operating in a free market vs. seemingly impoverished people in developing countries.

Answer 49

neo-colonialism

Question 50

 (all of which feature social ownership of the means of production) can be subdivided by their coordinating mechanism (planning and markets) into planned socialist and market socialist systems.

Answer 50

Socialist economic systems

Question 51

 is a hypothetical stage of socialist development articulated by Karl Marx as "second stage socialism" in Critique of the Gotha Program, whereby the economic output is distributed based on need and not simply on the basis of labor contribution.

Answer 51

Communism

Question 52

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.

Answer 52

Communism

Question 53

Belief that social and economic equality is obtained through government ownership and regulation of the means of production.

Answer 53

Socialism

Question 54

generally refers to market economies with substantial state interventionism and/or sizable public sector alongside a dominant private sector

Answer 54

Mixed economy

Question 55

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.

Answer 55

Mixed economy

Question 56

The likelihood that a society will undergo political changes that negatively affect local business activity.

Answer 56

Political risk

Question 57

Types of Political Risk

Answer 57

Macro risk Micro risk

Question 58

threatens the activities of all domestic and international companies in every industry.

Answer 58

Macro Risk

Question 59

threatens companies within a particular industry (or more narrowly defined group)

Answer 59

Micro risk

Question 60

we classify political risk according to actions or events that cause it to rise, including:-

Answer 60

conflict and violence terrorism and kidnapping property seizure policy changes local content require ments

Question 61

Property Seizure

Answer 61

Confiscation Expropriation Nationalization

Question 62

The forced transfer of assets from a company to the government without compensation is called

Answer 62

confiscation.

Question 63

allows the U.S. businesses to sue companies from other nations that use their property that Cuba confiscated in its 1969 communist revolution.

Answer 63

1996 Helms-Burton Law

Question 64

The forced transfer of assets from a company to the government with compensation is called .

Answer 64

expropriation

Question 65

means government takeover of an entire industry

Answer 65

nationalization

Question 66

Property that results from people’s intellectual talent is called

Answer 66

intellectual property.

Question 67

property right granted to the inventor of a product or processes that excludes others from making, using or selling the invention.

Answer 67

PATENT

Question 68

property right in the form of words or symbols that distinguish a product and its manufacturer.

Answer 68

TRADEMARK

Question 69

property right giving creators of original works the freedom to publish or dispose of them as they choose.

Answer 69

COPYRIGHT

Question 70

Copyrights are protected under the _____, which is an international copyright treaty to which United States is a member, and the 1954 Universal Copyright Convention.

Answer 70

Berne Convention

Question 71

Fake goods

Answer 71

Counterfeit

Question 72

describes the act of reproducing movies, music, books or other copyrighted works without permission from the copyright owner.

Answer 72

"piracy"

Question 73

are regulations that monitor the distribution of economic power in business, making sure that healthy competition is allowed to flourish and economies can grow.

Answer 73

Antitrust laws

Question 74

Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called

Answer 74

antitrust (anti monopoly) laws.

Question 75

the three pivotal laws in the history of antitrust regulation.

Answer 75

The Sherman Commission Act, the Federal Trade Act and the Clayton Act are