Exam 7: Political and Legal Systems in National Environments

________ is the seizure of corporate assets without compensation.

Which of the following laws is responsible for the ban on cigarette advertisements in France?

Democracy is closely associated with openness.

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 is most likely applicable to Country B?

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?

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 totalitarian state. Representative B is from a socialist nation. Representative C hails from a democratic society. -Representative B is most likely from ________.

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

Country risk is present in select nations.

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 Organisation for Economic Co-operation and Development (OECD) is classified as a(n) ________.

Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?

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

A market economy is also called a centrally planned economy.

Host-country employees provide firms with information about country risks that might harm the firm and its international interests.

Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.

Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important.

A democratic government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Which of the following is a typical complaint of host-country competitors against foreign firms?

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

________ 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.