Exam 6: Political and Legal Systems in National Environments

Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.

________ are the people and organizations that support the political system and receive government resources.

World Conference (Scenario) At a world conference to be conducted in Tokyo, representatives from nearly every country in the world will gather to discuss issues related to international trade. Representative A is from a authoritarian state. Representative B is from a socialist nation. Representative C hails from a democratic society. -Representative B is most likely from ________.

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Host-Country Legal System (Scenario) Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway. -Which of the following is the most important issue to consider when determining the best entry strategy for Super Sports?

Democracy is characterized by unlimited governmental interference.

Government agencies, institutions, and public officials influence the manner in which foreign firms conduct business.

Which of the following terms refers to the existence of a legal system based on clear rules and fair enforcement?

Religion-based authoritarian states are called ________.

Governments grant patents and provide other types of protections for intellectual property.

An individual from a country with a high degree of political risk would most likely be from ________.

Which type of laws refer to the application of home-country laws to persons or conduct outside national borders? In most cases, such laws are intended to prosecute individuals or firms located abroad for some type of wrongdoing.

The immediate cause of country risk is a legal or political factor.

A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Common law originated in the United States.

________ is the seizure of corporate assets without compensation.

Which of the following is an element of socialism often found in democratic societies?

Islamic law is also known as code law.

Which of the following laws is responsible when Germany largely prohibits comparative advertising, in which a product is promoted as superior to a competing brand?

Common and Civil Law (Scenario) Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term. -Which of the following statements is most likely applicable to Country B?