Exam 6: Political and Legal Systems in National Environments

Explain command economies. Provide examples of nations that exhibit characteristics of command economies and why command economies are no longer common today.

Which of the following terms indicates potential loss or adverse effects on company operations and profitability caused by developments in a country's political and/or legal environments?

Socialism is based on a collectivist ideology that assumes that the collective welfare of people outweighs the welfare of the individual.

Compare and contrast common law with civil law specifically as the two systems relate to international business.

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Describe the two elements that contribute to country risk. Provide examples of countries with high and low country risk, and explain the reasons for these two distinctions.

Authoritarianism's fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

World Conference (Scenario) At a world conference to be conducted in Tokyo, representatives from nearly every country in the world will gather to discuss issues related to international trade. Representative A is from a authoritarian state. Representative B is from a socialist nation. Representative C hails from a democratic society. -Which of the following countries would Representative A most likely be from?

What has been the impact of social democracy on international business relations in some European countries?

Host-Country Legal System (Scenario) Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway. -Which of the following would most likely oppose the opening of a Super Sports store in Norway?

Which of the following countries is considered a social democracy?

Nationalization describes government seizure of an entire industry, with or without compensation.

What is transparency? Explain how transparency varies around the world.

A(n) ________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.

The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.

Which of the following would be the best way for a manager to learn about country risks in a host country?

Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing compensation in return.

A market economy is closely associated with capitalism.

Which of the following legal systems is largely practiced in the Middle East?