Question 1

Which of the following statements about the legal systems of countries is true?

Accepted Answer

A)  They can affect the attractiveness of a country as an investment site or market. 
B)  They are not influenced by the prevailing political system of the country. 
C)  They are almost the same for all countries. 
D)  They are of little importance to international business.

Question 2

________ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.

Accepted Answer

A)  Communist totalitarianism 
B)  Theoretical totalitarianism 
C)  Right-wing totalitarianism 
D)  Tribal totalitarianism

Question 3

The research and development division of a company has recently designed a new coffee vending machine that is likely to sell very well in the market. It is compact, user-friendly, and provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears that its competitors would soon mimic the design of its product. To protect its product, the company is now seeking a

Accepted Answer

A)  copyright. 
B)  patent. 
C)  trademark. 
D)  certification.

Question 4

In a pure market economy,

Accepted Answer

A)  all productive activities are owned by the state. 
B)  production is determined by the interaction of supply and demand. 
C)  collectivist goals are given priority over individual goals. 
D)  the prices at which goods are sold are determined by the government.

Question 5

The TRIPS agreement was designed to

Accepted Answer

A)  exclude China from all intellectual property agreements. 
B)  oversee a much stricter enforcement of intellectual property regulations. 
C)  hold a firm and its officers responsible when a product causes injury, death, or damage. 
D)  support traded software and recorded property among developed markets.

Question 6

The ________ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers that have their places of business in different nations.

Accepted Answer

A)  Trade-Related Aspects of Intellectual Property Rights (TRIPS) 
B)  Paris Convention for the Protection of Industrial Property 
C)  United Nations Convention on Contracts for the International Sale of Goods (CISG) 
D)  World Trade Organization (WTO)

Question 7

In Russia, in the chaotic period following the collapse of communism, an outdated legal system, coupled with a weak police force and judicial system, allowed the Russian Mafia to demand "protection money" from business owners.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

Accepted Answer

A)  private action. 
B)  copyright violation. 
C)  infrastructural failure. 
D)  public liability.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which system of government generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism?

Accepted Answer

A)  tribal totalitarianism 
B)  right-wing totalitarianism 
C)  democratic totalitarianism 
D)  theocratic totalitarianism

Question 10

A theocratic law system is one in which the law is based on religious teachings.

Accepted Answer

A) True 
 B)False

Question 11

________ are established through patents, copyrights, and trademarks.

Accepted Answer

A)  Digital signatures 
B)  Ownership rights over private property 
C)  Origination fees and tributes 
D)  Ownership rights over intellectual property

Question 12

A civil law system tends to be less adversarial than a common law system because the

Accepted Answer

A)  judges' decisions are based on detailed legal codes. 
B)  judges have the freedom to interpret laws based on the situation. 
C)  judges' decisions are based on religious teachings. 
D)  judges are guided by interpretations made in prior legal cases.

Question 13

The most widely practiced theocratic legal system in the modern world is

Accepted Answer

A)  Christian. 
B)  Hindu. 
C)  Jewish. 
D)  Islamic.

Question 14

In a(n) ________ society, the welfare of society is best served by letting people pursue their own economic self-interest.

Accepted Answer

A)  individualist 
B)  capitalist 
C)  democratic 
D)  totalitarian

Question 15

Which of the following statements about individualism is true?

Accepted Answer

A)  Individualism promotes state ownership of the basic means of production, distribution, and exchange. 
B)  Individualism promotes globalization. 
C)  Individualism creates an antibusiness environment. 
D)  Individualism and democracy go hand in hand.

Question 16

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

Accepted Answer

A)  private action. 
B)  collective action. 
C)  public action. 
D)  copyright violation.

Question 17

________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles.

Accepted Answer

A)  Representative democracy 
B)  Theocratic totalitarianism 
C)  Tribal anarchism 
D)  Monotheistic communism

Question 18

When ________ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

Accepted Answer

A)  individualism 
B)  totalitarianism 
C)  collectivism 
D)  theocracy

Question 19

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

Accepted Answer

A)  market 
B)  private 
C)  command 
D)  mixed

Question 20

When Penelope returned home from vacation, she found her store had been robbed and her most valuable merchandise was gone. This violation of property rights is considered private action.

Accepted Answer

A) True 
 B)False

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

Which of the following statements about the legal systems of countries is true?

________ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.

In a pure market economy,

The TRIPS agreement was designed to

The ________ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers that have their places of business in different nations.

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

Which system of government generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism?

A theocratic law system is one in which the law is based on religious teachings.

________ are established through patents, copyrights, and trademarks.

A civil law system tends to be less adversarial than a common law system because the

The most widely practiced theocratic legal system in the modern world is

In a(n) ________ society, the welfare of society is best served by letting people pursue their own economic self-interest.

Which of the following statements about individualism is true?

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

________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles.

When ________ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.

When Penelope returned home from vacation, she found her store had been robbed and her most valuable merchandise was gone. This violation of property rights is considered private action.