International Business - Chapter 3

Front 1

political system

Back 1

includes structures, processes, and activities by which a nation governs itself

Front 2

anarchism

Back 2

the belief that only individuals and pricate groups should control a nation's political activities

Front 3

totalitarianism

Back 3

the belief that every aspect of people's lives must be controlled for a nation's political system to be effective

Front 4

pluralism

Back 4

the belief that both private and public groups play important roles in a nation's political activities

Front 5

democracy

Back 5

a political system in which government leaders are elected directly by the wide participation of the people or by their representatives

Front 6

representative democracies

Back 6

citizens elect individuals from their groups to represent their political needs and views

Front 7

freedom of expression

Back 7

a constitutional right in most democracies, freedom of expression ideally grants the right to vote opinions freely and without fear of punishment

Front 8

periodic elections

Back 8

each elected representative serves for a period of time, after which the people decide whether or not to retain these representatives

Front 9

civil rights

Back 9

include freedom of speech, freedom to organize political parties, and the right to a fair trial

Front 10

property rights

Back 10

the privileges and responsibilities of owners of property

Front 11

minority rights

Back 11

the same rights and privileges are by law extended to each group, no matter how few members it has

Front 12

nonpolitical bureaucracies

Back 12

the bureaucracy is the part of the government that implements the rules and laws passed by elected representatives

Front 13

private sector

Back 13

segment of the economic environment comprising independently owned firms that exist to make a profit

Front 14

totalitarian system

Back 14

individuals govern without the support of the people, government maintains control over many aspects of people's lives, and leaders do not tolerate opposing viewpoints.

Front 15

theocracy

Back 15

when a country's religious leaders are also its political leaders

Front 16

theocratic totalitarianism

Back 16

a political system that is under the control of totalitarian religious leaders

Front 17

secular totalitarianism

Back 17

a political system in which political leaders rely on military and bureaucratic power

Front 18

communism

Back 18

the belief that social and economic equality can be obtained only by establishing an all-powerful communist party and by instituting socialism

Front 19

socialism

Back 19

an economic system in which the government owns and controls all types of economic activity

Front 20

capitalism

Back 20

the belief that ownership of the means of production belongs in the hands of the individuals and private businesses

Front 21

tribal totalitarianism

Back 21

one ethnic group imposes its will on others with whom it shares a national identity

Front 22

right wing totalitarianism

Back 22

the government endorses private ownership of property and a market based economy, but grants few political freedoms

Front 23

political risk

Back 23

the likelihood that a government or society will undergo political changes that negatively affect local business activity

Front 24

confiscation

Back 24

forced transfer of assets from a company to the government without compensation

Front 25

expropriation

Back 25

forced transfer of assets from a company to the government with compensation

Front 26

nationalization

Back 26

government takeover of an entire industry

Front 27

local content requirements

Back 27

laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market

Front 28

adaptation

Back 28

incorporating risk into business strategies, often with the help of local officials

Front 29

local equity and debt

Back 29

financing local business activities with the help of local firms, trade unions, financial institutions, and government

Front 30

localization

Back 30

entails modifying operations, the product mix, or some other business element to suit local tastes and culture

Front 31

development assistance

Back 31

allows and international business to assist the host country or region in developing its distribution and communications networks and improving the quality of life for locals

Front 32

lobbying

Back 32

policy of hiring people to represent a company's views on political matters

Front 33

foreign corrupt practices act

Back 33

1977 statute forbidding US companies from bribing government officials or political candidates in other nations

Front 34

legal system

Back 34

set of laws and regulations including the processes by which a country's laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions

Front 35

e-government

Back 35

use of information technology and e-commerce techniques that allow citizens and businesses to access government information and obtain public services

Front 36

nationalism

Back 36

devotion of a people to their nation's interests and advancement

Front 37

common law

Back 37

legal system based on a country's legal history, past cases that have come before its courts, and the ways in which laws are applied in specific situations

Front 38

civil law

Back 38

legal system based on a detailed set of written rules and statutes that constitute a legal code

Front 39

theocratic law

Back 39

legal system based on religious teachings

Front 40

intellectual property

Back 40

property that results from people's intellectual talent and abilities

Front 41

property rights

Back 41

legal rights to resources and any income they generate

Front 42

industrial property

Back 42

patents and trademarks

Front 43

patent

Back 43

property right granted to the inventor of a product or process that excludes others from making, using, or selling the invention

Front 44

trademark

Back 44

property right in the form of words or symbols that distinguish a product and its manufacturing

Front 45

copyright

Back 45

property right giving creators of original works the freedom to publish or dipose of them as they choose

Front 46

Berne Convention

Back 46

international treaty that protects copyrights

Front 47

product liability

Back 47

responsibility of manufacturers, sellers, and others for damage, injury, or death caused by defective products

Front 48

value added tax (VAT)

Back 48

tax levied on each party that adds value to a product throughout its production and distribution

Front 49

antitrust laws

Back 49

laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages

Front 50

ethical behavior

Back 50

personal behavior in accordance with rules or standards for right conduct of morality

Front 51

united nations

Back 51

international organization formed after WWII to provide leadership in fostering peace and stability around the world