Exam 3: The Political and Legal Environments Facing Business

Under the ________ form of totalitarianism,the regime confines itself to political control of the state. It does not regulate the economic and social structure of society.

All of the following countries have a totalitarian political system EXCEPT ________.

A political ideology is the collection of ideas that expresses the goals,theories,and aims that constitute a sociopolitical program.

In a country that emphasizes collectivism,________.

Countries with a theocratic legal system encourage precise,detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.

Elite Manufacturing seeks a foreign location with a highly favorable business environment and a comprehensive legal code. Which of the following countries would be most suitable for Elite?

A(n)________ ideology is the system of ideas that expresses the goals,theories,and aims of how society should work.

The rule of law holds that governmental authority is legitimately exercised only in accordance with written,publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.

In some collectivist systems,such as Venezuela,politicians control media outlets and limit individual property rights in order to acquire power in the business environment.

Harmon Clothing has a production facility located in Venezuela. Recently,Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government. Which type of political risk is Harmon most likely experiencing?

Logan Electronics has a production facility in Bolivia. Recently,the firm was taxed at a significantly higher rate than a local electronics company. Which type of political risk is Logan most likely experiencing?

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

Which of the following statements best describes a pluralistic society?

Which of the following countries has a collectivist orientation?

The principle that an individual has the freedom to pursue his or her interests is called ________.

Civil strife,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

The fundamental element of democracy is justice.

The Washington Consensus promotes democracy,freedom,the rule of man,and human rights.

Research indicates that democracy is declining around the world and that totalitarian regimes are increasing.

A civil law system anchors itself in the wisdom of daily experience or,more intellectually,great spiritual or philosophical traditions.