question

The two dimensions, according to which the political systems can be assessed, collectivism-individualism and democratic-totalitarian are independent of each other.

answer

FALSE

question

It is possible to have a democratic political system that emphasizes a mix of collectivism and individualism.

answer

TRUE

question

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

answer

TRUE

question

Plato, to whom the advocacy of collectivism is traced back, did not equate collectivism with equality.

answer

TRUE

question

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

answer

FALSE

question

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

answer

FALSE

question

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

answer

FALSE

question

Modern socialists trace their intellectual roots to Karl Marx (1818-83), although socialist thought clearly predates Marx.

answer

TRUE

question

In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest.

answer

TRUE

question

Aristotle argued that individual diversity and private ownership are undesirable.

answer

FALSE

question

The Cold War was a war between collectivism and individualism.

answer

TRUE

question

Most modern democratic states practice representative democracy.

answer

TRUE

question

Democracy is a form of government that prohibits opposing political parties.

answer

FALSE

question

In a totalitarian country, there are safeguards to protect an individual's right to freedom of expression, opinion, and organization.

answer

FALSE

question

It is possible to have a totalitarian state that is hostile to collectivism and where some degree of individualism is encouraged.

answer

TRUE

question

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

answer

TRUE

question

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

answer

TRUE

question

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

answer

FALSE

question

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

answer

TRUE

question

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

answer

TRUE

question

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

answer

FALSE

question

When law courts interpret common law, they do so with regard to tradition, precedent, and custom.

answer

TRUE

question

Judges under a civil law system have more flexibility than those under a common law system.

answer

FALSE

question

Judges in a common law system have the power to interpret the law so that it applies to the unique circumstances of an individual case.

answer

TRUE

question

Common law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.

answer

FALSE

question

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

answer

TRUE

question

Jewish law is the most widely practiced theocratic legal system in the world today.

answer

FALSE

question

The parties to an agreement normally resort to contract law when one party feels the other has violated either the letter or the spirit of an agreement.

answer

TRUE

question

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

answer

FALSE

question

Many of the world's larger trading nations, including Japan and the United Kingdom, have not ratified the United Nations Convention on Contracts for the International Sale of Goods (CIGS).

answer

TRUE

question

Property rights refer to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource.

answer

TRUE

question

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

answer

FALSE

question

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

answer

TRUE

question

The Foreign Corrupt Practices Act does not allow for grease payments.

answer

FALSE

question

In the 1970s, the United States passed the Foreign Corrupt Practices Act 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.

answer

TRUE

question

Patents, copyrights, and trademarks establish ownership rights over intellectual property.

answer

TRUE

question

Patents discourage companies from committing themselves to extensive basic research.

answer

FALSE

question

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

answer

FALSE

question

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

answer

FALSE

question

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

answer

FALSE

question

The political systems of a country raise ethical issues that have implications for the practice of international business.

answer

TRUE

question

The political, economic, and legal environments of a country influence the attractiveness of that country as a market or investment site.

answer

TRUE

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