Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

42 Cards in this Set

  • Front
  • Back
political economy
the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being
political system
the system of govt in a nation
refers to a political system that stresses the primacy of collective goals over individual goals
believed that socialism could be achieved only through violent revolution and totalitarian dictatorship
social democrats
committed themselves to achieving socialism by democratic means and turned their backs on violent revolution and dictatorship
parties sold state-owned enterprises to private investors
refers to a philosophy that an individual should have freedom in his or her economic and political pursuits
two central tenets of individualism
1. emphasis on the importance of guaranteeing individual freedom and self-expression
2. the welfare of society is best served by letting people pursue their own economic self-interest, as opposed to some collective body dictating what is in society's best interest
refers to a political system in which govt is by the people, exercised either directly or through elected representatives
form of govt in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
representative democracy
citizens periodically elect individuals to represent them
communist totalitarianism
theocratic totalitarianism
found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
tribal totalitarianism
occurs when a political party that represents the interests of a particular tribe monopolizes power
right-wing totalitarianism
permits some individual economic freedom but restricts individual political freedom on the grounds that it would lead to the rise of communism
-overt hostility to socialist or communist ideas
market economy
all productive activities are privately owned, goods and services not planned
command economy
the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the govt
mixed 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
legal system
refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained

laws: regulate business practice, define the manner in which business transactions are to be executed, set down the rights and obligations of those involved in business transactions
common law
based on tradition, precedent, and custom

tradition-country's legal history
precedent-cases that have come before the courts in the past
custom-ways in which lawas are applied in specific situations
civil law
based on a very detailed set of laws organized into codes
theocratic law
the law is based on religious teachings
document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved
contract law
body of law that governs contract enforcement
United nations Convention on Contracts for the International Sale of Goods (CIGS)
set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of businesses in different nations
property rights
bundle of 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
private action
refers to theft, piracy, blackmail, and the like by private individuals or groups
public action
the extortion of income or resources from property holders by public officials, such as politicians and govt bureaucrats
Foreign Corrupt Practices Act
U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions
grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention
exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and dispose of their work as they see fit
designs and naes, often officially registered, by which merchants or manufacturers designate and differentiate their products
Paris Convention for the Protection of Industrial Property
international agreement to protect intellectual property, 96 countries
Trade Related Aspects of Intellectual Property Rights (TRIPS)
an agreement among members of the WTO to enforce stricter intellectual property regulations, including granting and enforcing patents lasting at least 20 years and copyrights lasting 50 years
product safety laws
set certain safety standards to which a product must adhere
product liability
involves holding a firm and its officers responsible when a product causes injury, death, or damage
GNI, gross national income
measures the total annual income received by residents of a nation
purchasing power parity
an adjustment in gdp per capita to reflect differences in the cost of living, base of adjustment is cost of living in the US
Human Development Index
an attempt by the UN to assess the impact of a number of factors on the quality of human life in a country

1. life expectancy
2. educational attainment
3. avg incomes sufficient to meet basic needs of life
development of new products, processes, organizations, mgmt practices, and strategies
removal of govt restrictions concerning the conduct of a business
the sale of state-owned enterprises to private investors