International Business 201 - Chapter 6 - The Legal And Political Environment Of Global Business

Front 1

Democracy

Back 1

Greek for "rule by the people"; form of government in which all citizens have the right to vote.

Hint 1

Greek Government (usa, Norway, Sweden)

Front 2

Athenian Democracy

Back 2

A pure form of democracy, in which all adult citizens vote directly on matters affecting the community.

Hint 2

Pure form

Front 3

Representative Democracy

Back 3

Form of government on which citizens vote to elect given individuals to serve as their represtatives for a certain period of time.

Hint 3

U.S. Democracy

Front 4

Totalitarian Government

Back 4

System of government in which individuals govern without the support or consent of the citizenry; for example, a military dictatorship.

Hint 4

Dictatorship (north korea)

Front 5

Constitutional Monarchies

Back 5

Ceremonial Monarchs. (kings and queens)

Hint 5

England's government

Front 6

Communism

Back 6

An economic ideology whereby the government or state owns and controls all major factor of production and is philosophically a economically classless society.

Hint 6

Russia's government

Front 7

Socialism

Back 7

An economic ideology in which the government plays a strong role in the economy and may own stakes in certain businesses.

Hint 7

Strong Role

Front 8

Capitalism

Back 8

An economic ideology where businesses are privately owned, strong individual incentives exist, and the government plays very role in the economy.

Hint 8

U.S. government

Front 9

Economic Perks

Back 9

The risk that economic problems or mismanagement in a given country will have a meaningful negative impact upon the conduct of business in that country.

Hint 9

Negative impact on conduct

Front 10

Political Risk

Back 10

The risks that political forces or problems in a given country will have a meaningful negative impact upon the conduct of business in that country.

Front 11

Micropolitical Risk

Back 11

A political risk that only affect a certain industry or set of firms in given country.

Front 12

Macropolitical Risk

Back 12

A political risk that essentially affects all businesses in a given country.

Front 13

Terrorism

Back 13

Involves unlawful art or violence threatening the physical safety of others.

Hint 13

Unlawful violence

Front 14

Terrorist Risk Insurance Active of 2002

Back 14

A United States law that after a certain deductible provides U.S. business government insurance coverage for the risk of terrorism.

Hint 14

Terrorist Insurance Policies

Front 15

Overseas Private Investment Corporation (OPIC)

Back 15

A U.S. government agency that sells political risk insurance to U.S. business operative in countries with which the United States has a bilateral investment treaty.

Front 16

Corruption

Back 16

A situation where business are able to illegally after relevant private and/or public decision making by way of bribes, kickbacks, blackmail, extortion, and related activities.

Front 17

Public Corruption

Back 17

The practice of making illegal payments to government officials or engaging in blackmail, extortion or other related activities to obtain government approval for business activities.

Front 18

Foreign Corrupt Practices Active (FCPA)

Back 18

A United States law that prohibits U.S. companies from bringing or otherwise corrupting foreign government official to win foreign government contract or obtain after foreign government assistance for their businesses.