Exam 2: National Differences in Political Economy

All of the following are key components of a country's legal system EXCEPT:

What is product liability?

The Trade Related Aspects of Intellectual Property Rights, attempts to reduce intellectual property protections to enhance trade.

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

The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.

Product liability sets certain safety standards to which a product must adhere.

To facilitate international business, property rights are defined in a consistent way across countries.

Discuss the Foreign Corrupt Practices Act.

The objective of the government in a command economy is to encourage free and fair competition between private producers.

Compare and contrast the four forms of totalitarianism.

What are the factors that contribute to the attractiveness of a country as a market or investment site?

Violation of property rights done through legal mechanisms such as levying excessive taxation and requiring expensive licenses or permits from property holders is called _______.

How do countries with representative democracies ensure that their elected officials are held responsible for their actions?

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

Property rights can be violated in two ways-through private action and through public action.

In a(n) _____ economy the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.

Discuss collectivism. What ideals does the philosophy support? Where did the philosophy start? How does collectivism exist in the modern world?

In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.

In Russia in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to demand "protection money" from business owners. Any business owner who rebelled had to face violent retribution. This violation of property rights exemplifies ____.

In a command economy, enterprises have little incentive to control costs and be efficient, because they cannot go out of business.