Exam 2: Understanding Formal Institutions: Politics, Laws, and Economics

____ are exclusive legal rights of firms to use specific names, brands, and designs to differentiate their products from others.

Democracy was pioneered by the Athenians in ancient Greece.

The world s largest democracy is:

IPRs primarily include rights associated with:

Outline the differences between democracy and totalitarianism.

The division of labor thesis was first advanced by:

Managers considering working abroad should have a thorough understanding of the formal institutions before entering a country.

The economic system of most countries is a market economy.

Identify the basic characteristics of formal and informal institutions.

Describe the differences among the three economic systems.

Political risk is associated with political changes that may negatively impact domestic and foreign firms. Which statement about political risk is correct?

Formal and informal policies are popularly known as the rules of the game.

Civil law is derived from:

Jewish and Islamic law are examples of:

Institutional transactions in countries such as China, Poland, Russia, Brazil, India and South Africa create both huge challenges and tremendous opportunities for domestic and international firms.

Discuss totalitarianism and outline the four major types of totalitarianism.

The invisible hand of market forces noted by Adam Smith in the Wealth of Nations in 1776 characterizes a pure market economy.

The main supportive pillar(s) for informal institutions is/are:

Define the two core propositions of the institution-based view.

Civil law is derived from Roman law and was strengthened by Napoleon s France.