Chapter 7 GE

Topics: Common law, Law, Economic system Pages: 29 (8015 words) Published: April 20, 2015
International Business: The New Realities, Global Edition, 3e (Cavusgil) Chapter 7 Political and Legal Systems in National Environments

1) The immediate cause of country risk is a legal or political factor. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-1
AACSB: Dynamics of the global economy

2) Trade unions are part of a country's legal system.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-2
AACSB: Dynamics of the global economy

3) Country risk is present in select nations.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-2
AACSB: Dynamics of the global economy

4) Most democracies include elements of socialism.
Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

5) A democratic government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

6) Totalitarianism's fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy
7) Socialism is based on a collectivist ideology which assumes that the collective welfare of people outweighs the welfare of the individual. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

8) Democracy is characterized by limited governmental interference. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

9) Democracy is closely associated with openness.
Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

10) A market economy is also called a centrally planned economy. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

11) In a market economy, the government may intervene to address the inequalities that market economies sometimes produce. Answer: TRUE
Difficulty: Moderate
Skill: Concept
Objective: 7-3
AACSB: Dynamics of the global economy

12) Market forces and free trade are encouraged in democracies. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

13) Common law originated in the United States.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy
14) Civil law is more flexible than the other legal systems. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

15) Common law is also known as code law.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

16) Common law is primarily judicial in origin and based on court decisions. Answer: TRUE
Difficulty: Moderate
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

17) Civil law is primarily legislative in origin and based on laws passed by national and local legislatures. Answer: TRUE
Difficulty: Moderate
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

18) Like most legal systems, Islamic law evolves with changing times to better meet the needs of the Islamic society. Answer: FALSE
Difficulty: Moderate
Skill: Concept
Objective: 7-4
AACSB: Dynamics of the global economy

19) Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 7-5
AACSB: Dynamics of the global economy

20) Special interest groups serve the interests of particular countries, industries, or...
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