Exam 6: Political and Legal Systems in National Environments

The European Union is classified as a(n) ________.

Common law is more flexible than the other legal systems.

Which of the following legal systems is based on legal precedents and past practices set by the nation's courts through interpretation of statutes, legislation, and past rulings?

Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.

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. -Representative C is most likely from ________.

Market forces and free trade are encouraged in authoritarian countries.

An individual from a country with a low degree of political risk would most likely be from ________.

In a market economy, the government can never intervene to address the inequalities that market economies sometimes produce.

Explain why contract laws can represent a country risk arising from the host-country legal environment, and explain the three approaches firms typically employ to settle international contractual disputes.

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Provide an overview of authoritarianism, socialism and democracy. Provide examples of nations which adhere to each system.

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

The three major types of current political systems are ________.

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

Islamic law governs relationships among people, between people and the state, and between people and a supreme being.

An embargo is an official ban on exports to or imports from a particular country.

A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Country risk can be potentially present in all nations.

Common and Civil Law (Scenario) Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term. -Which of the following questions would be more important for Zane legal experts to consider before recommending Country A or Country B?

The World Bank is classified as a(n) ________.