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
Reading...
Front

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

image

Play button

image

Play button

image

Progress

1/22

Click to flip

22 Cards in this Set

  • Front
  • Back
Political economy
The political, legal, and economic systems of a country
Political system
The system of a government in action
Understand how the political systems of countries differ
Collectivism: A political system that emphasizes collective goals over individual goals
Socialism: A political philosophy advocating substantial public involvement, through government ownership, in the means of production and distribution
Individualism: An emphasis on the importance of guaranteeing individual freedom and self-expression
Democracy: Political system in which gov’t is by the people, exercised either directly or through elected representatives
Representative Democracy: A democracy in which citizens periodically elect individuals to represent them
Totalitarianism: Form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
Communist Totalitarianism: A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship
Theocratic Totalitarianism: Political power is monopolized by a party, group, or individual that governs according to religious principles
Tribal Totalitarianism: monopolized by a particular tribe
Right-Wing Totalitarianism: Generally permits individual freedom but restricts individual political freedom, thinking that it would lead to communism
Communists
Those that believe that socialism can be achieved only through revolution and totalitarian dictatorship
Social Democrats
Those committed to achieving socialism by democratic means
Privatization
The sale of state-owned enterprises to private investors
Recognize how the economic systems of countries differ
Market Economy: An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced
Command economy: The government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold.
Mixed economy: Characteristics of both
Understand how the legal systems of countries differ
Common law: A system of law based on tradition, precedent, and custom
Civil law system: A system of law based on a detailed set of written laws and codes
Theocratic law system: A system of law based on religious teachings
United Nations Convention on Contracts for the Int'l Sale of Goods (CIGS)
A set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations
Property rights
The 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 by that resource
Private Action
The theft, privacy, blackmail, and the like by private individuals or groups
Public Action
The extortion of income or resources of property holders by public officials
Foreign Corrupt Practices Act
US law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions
Intellectual Property
Products of the mind, such as computer software, a screenplay, a music score, etc.
World Intellectual Property Organization
An international organization whose members sign treaties designed to protect intellectual property.
Paris Convention for the Protection of Industrial Property
International agreement to protect intellectual property; dates back to 1983 and has been signed by some 170 nations
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 damages.
Explain what determines the level of economic development of a nation
Gross National Income (GNI): The yardstick for measuring the economic activity of a country; it measures the total annual income received by a nation's residents
Purchasing Power Parity (PPP): An adjustment in GDP per capita to reflect differences in the cost of living
Human Development Index (HDI): An attempt by the UN to assess the impact of a number of factors on the quality of human life in a country.
Identify the macro-political and economic changes taking place worldwide.
Many countries are now in a state of transition. there is a marked shift away from totalitarian governments and command or mixed economies and toward democratic political institutions and free market economic systems
Describe how transition economies are moving toward market-based systems
Deregulation: removal of gov't restrictions concerning the conduct of business
Privatization
Legal systems
Explain the implications for management practice of national differences in political economy
The risks of doing business in a country tend to be greater in countries that are politically unstable, subject to economic mismanagement, and lacking a legal system to provide adequate safeguards in the case of contract or property rights violations.