International Business Chapter 2. National differences

27 cards·by AntonellaAc

Study this deck

What is a political economy?

The interdependence of a country's political, economic and legal system

How the systems of political economy are interdependent?

Because 1) they interact and influence each other and 2)they affect the level of economic well-being in the nation

What is a political system?

The system of government in a nation which shapes its economic and legal systems

Which are the 2 degrees of the political system?

Collectivism vs individualism & totalitarian vs democratic

What is Collectivism?

Primacy of the collective goals over individual goals. Needs of society as a whole are viewed as more important than individual freedoms

Main aspects of socialism

1) Karl Marx & Plato 2)State ownership of the basic means to 3)benefit society as a whole.

Differences of two broad camps of socialism

Comunism- violent revolution and totalitariana dictatorship VS Social democrats- through democratic means

What Individualism refers to?

Refers to a philosophy that an individual should have the freedom in his or her economic and political pursuits

What Aristotle argue about individualism?

Individual diversity and private ownership are desirable. Private property is more highly productive which stimulate progress

Individualilsm is built on 2 central tenets:

1) Importance of guaranteeing individual freedom and self expression & 2)Welfare of soviety by letting people pursue own econ. self interest

On what belief is based the concept of democracy?

Citizens should be directly involved in decision making

What is practiced by most modern democratic states and what is that?

Representative democracy where citizens periodically elct individuals to represent them

What are the safeuards that are typically enshrined in constitutional law?

1)Freedom of expression, opinion & organization 2) free media 3) regular elections 4)Universal adult suffrage 5)access to state info etc

Meaning of totalitarianism

Is a form of government in which one person or political party have absolute control and prohibits opposing parties. Guarantees are denied.

How many forms of totaliltariansm exist? Name them and give an example

4: Communinst - North Korea, theocratic- Islam Iran, tribal - Uganda Zimbabwe & right-wing - Germany & italy 1930-40's

How many types of economic systems exist? Name them

3-. Market, command, & mixed

Explain Market economy

All productive activities are privately owned. Production is determined by interaction of supply and demand.

What is a Command Economy?

Is where the government plans the good and services that country produces, the quantity and the prices for "the good of society"

How many types of legal systems exist? name them

3: Common, civil & theocratic

What is the legal system that evolved in England over hundred of years and now is found in most of Great Britain's former colonies like US?

Common law (british)- Based on tradition, precedent and custom. Interpetated with regard to these characteristics, flexible.

What system is based on a detailed set of lays organized into codes? Name some countries that use it

Civil law system (latin) - Germany, France, Japan, Russia

In wich legal system the cotracts tend to be much shorter and less specific and why?

Civil law because many of their issues are already covered in a civil code

What convention is used to resolve the issues when there are contract disputes in international trade

United Nations Convention on Contracts for the International Sale of Goods(CIGS)

Concept that refers to the legal rights over the use to which a resource is put and over the use made of any income derived of it

Property rights

In terms of violating property rights, how many ways are and and what they refer to?

2. Private action: theft, piracy, blackmail, ex. "Russian Mafia" & Public action: by legal or illegal menas: expropriation, bribes, corrupti

Ways of protecting your intellectual property

Patents (product or process), copyrights (legal rights of authors, composers, etc) and trademarks (designs and names)

Name of the international organization and name of the convention that protect intellectual property?

World Intellectual Property Organization (WIPO) & Paris Convention for the Protection of Industrial Property