Exam 7: Political and Legal Systems in National Environments

Boycotts and protests have the potential to harm businesses by ________.

Which of the following types of organizations would wield the greatest power over a firm attempting to do business in Canada?

Civil law is more flexible than the other legal systems.

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

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.

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

Totalitarianism'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.

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 statements supports Country B over Country A?

________ are the people and organizations that support the political system and receive government resources.

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

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Which of the following countries is considered a mixed economy?

Islamic law is based on the ________.

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Which of the following pairs of nations are on opposite ends of the political freedom scale?

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?

________ is seizure of corporate assets with compensation.

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

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.