Exam 2: National Differences in Political, Economic, and Legal Systems

Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?

Safety standards to which a product must adhere are set by

In the 1970s, the United States ________, which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.

________ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?

Modern socialists trace their intellectual roots to ________, although socialist thought clearly predates this individual.

The number of command economies has fallen dramatically since the demise of communism in the late 1980s.

A common law system is different from a civil law system because

What are state-owned companies? Why do they usually perform poorly?

Contracts under a civil law system tend to be very detailed with all contingencies spelled out.

Which of the following is a feature of a democracy?

A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries.

The communists believed that socialism could be achieved by democratic means and turned their backs on violent revolution and dictatorship.

Which of the following is a reason that command economies tend to stagnate?

Product liability can be much lower if a product does not conform to required safety standards.

Which of the following provides exclusive legal rights to authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit?

What is a country's legal system? Why is it important to international businesses?

The Republic of Elbow has a command economy, and as such, its objective is to encourage free and fair competition between private producers.

Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights, and trademarks establish ownership rights over intellectual property.

In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.