Exam 2: Understanding Formal Institutions: Politics, laws, and Economics

A fundamental aspect of _____ is that it effectively conducts global business by providing an individual the right to freedom of expression and organization.

Which of the following economies would be characterized as having a laissez faire policy? 

Define political risk.How is it related to nationalization?

State ownership differs from private ownership in that in state ownership _____.

Right-wing totalitarianism refers to the monopolization of power in the hands of a communist party.

The _____ refers to the coercive power of governments.

How can a firm protect intellectual property rights (IP rights) when countries have different levels of IP rights' enforcement?

In a pure market economy,the government only performs functions that the private sector cannot do.

Which of the following would be considered an example of informal institutions? 

The Washington Consensus emphasizes using government intervention over state ownership in business.

The main supportive pillars of the informal institutions are _____.

Intellectual property specifically refers to _____ property.

The regulatory pillar supports both informal and formal institutions.

In a command economy,all factors of production should be government-owned or state-owned.

The _____ refers to the internalized,taken for granted values and beliefs that guide individual and firm behavior.

The key role of institutions is to _____ in business transactions.

The laws of a country are part of the formal institution.

What is totalitarianism? Outline the four major types of totalitarian systems.