Exam 3: The Economic, Legal, and Political Environment

Explain what is meant by transitional economies.

Civil law:

_____ systems are primarily built on legal precedent established by judges as they resolve individual cases; those case opinions have the force of law and strongly influence future decisions, particularly by lower courts.

The term copyright is defined as ,the exclusive right to control reproduction or adaptation of creative works, such as books, movies, music, paintings, photographs, and software.

A major flaw in the capitalist system is the idea that it is best to have one big firm, or national champion.

In the ijara method, the financial institution is considered to be the buyer of the property, and the customer pays rent to the financial institution.

Unlike the analysis of Porter's Diamond model, in transition economies, natural resources are not critical.

The resulting systems of jurisprudence derived from Shari'a can be viewed as quite lenient by most Western standards, where issues of personal behavior are concerned.

Transition economies continue to deal with the remnants of the old central planning, statist system.

The global consumer-goods industry is dominated by Asian and Latin American firms.

Which economic system relies on individuals in the society to determine the price of any good?

The nationality principle holds that every country has jurisdiction over its own citizens no matter where they are located.

All of the following are factors of the Diamond model of national competitiveness EXCEPT:

The institutional approach emphasizes the socio-political-cultural factors that affect decision making and actions in subtle but profound ways.

Which of the following is an example of a "white good"?

Socialism is an economic policy in which the state owns all assets of the society.

Businesses that the government owns, but which they allow professional managers run are known as:

Some countries believe that democracy and free-market economics go hand. This is referred to widely as:

Which economic system holds the belief that if assets are held by all, then all individuals will benefit?

According to the Economic Freedom Rating, the U.S. has continued to be ranked as the freest market in the world for a number of years.