Exam 3: Politics, Law, and Business Ethics

A democracy is a political system in which government leaders are elected directly by the wide participation of the people or their representatives.

Discuss the costs and benefits of doing business in a totalitarian nation.

The Foreign Corrupt Practices Act forbids U.S. companies from ________ government officials or political candidates in other nations.

Scenario: Risky Business Global Trading, LLC is a distributor of computer software and hardware, steel and copper scrap, and telephone and electric utility equipment. Involved in three very different types of industries, the company faces many types of risks in its global business. -What might have been the government's motive for taking over the entire electric utility industry?

Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called antitrust (antimonopoly) laws.

Totalitarian governments tend to share three features: ________, ________, and ________.

Explain what is meant by representative democracy and identify the five freedoms this type of government strives to provide.

When people voice their opinions, vote, and show general approval or disapproval of their political system, it is called ________.

Local content requirements are one form of political risk.

Totalitarian governments tend to favor public ownership of economic resources, whereas democracies tend to encourage entrepreneurial activity and protect small businesses with strong property-rights laws.

The belief that ownership of the means of production belongs in the hands of individuals and private business is called ________.

In every country, the rate of economic growth is primarily determined by its political and civil liberties.

Offering local ________ allows an international business to assist the host country or region in improving the quality of life for locals.

Local content requirements can force a company to do all of the following EXCEPT ________.

Political relations among countries tend to have little impact on international business.

Wide participation in a political system occurs when people who are capable of influencing the political system make an effort to do so.

Scenario: Susan Goes Global with R&R Susan Smith works in marketing at Reconditioned Refrigerators (R&R), a global manufacturing company. Susan knows that to advance into upper management she must gain broader experience and was recently told that she can choose from several locations in which R&R is active for her first international assignment. Susan knows little about other nations, their cultures, and their political systems, so she has embarked on an ambitious research project to make an informed decision. -Researching Britain, Susan learns that Britain practices ________.

________ include freedom of speech, freedom to organize political parties, and the right to a fair trial.

A totalitarian system is marked by narrow participation.

Which of the following is the forced transfer of assets from a company to the government without compensation?