Exam 2: National Differences in Political Economy

What are state-owned companies? Why do they exist? Why do they usually perform poorly?

Since the 1980s,the political economy of many nations has seen a shift away from centrally planned and mixed economies toward more free market economic models.

The law that makes it illegal to bribe a foreign government official in order to maintain business over which that foreign official has authority,and requires all publicly traded companies to keep detailed records that would allow determining whether a violation of the act has occurred is the:

Today,global changes in the political economy are characterized by free markets and democracy,with command economies and totalitarian dictatorships having completely disappeared.

The rule of law minimizes corruption in all countries.

High levels of corruption significantly reduce the foreign direct investment,level of international trade,and economic growth rate in a country.

In an individualist society,the welfare of society is best served by letting people pursue their own economic self-interest.

It is not possible to have democratic societies that emphasize a mix of collectivism and individualism.

In all of the following scenarios,the costs of doing business in a country tend to be greater,except where:

Because international businesses are headquartered in different countries,a nation's legal system is usually of very little interest to international business managers.

Design and names by which merchants or manufacturers designate and differentiate their products are known as:

The communists believed that socialism could be achieved by democratic means,and turned their backs on violent revolution and dictatorship.

Most modern democratic states practice representative democracy.

With regard to political factors,a company may have to pay off politically powerful entities in a country before the government allows it to do business there.

Discuss the three main reasons for the spread of democracy.

Compare and contrast a pure democracy and a representative democracy.Which type of democracy is more common today? Why?

Totalitarianism:

How are the long-run benefits of doing business in a country measured?

The United Nations CIGS establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

To facilitate international business,property rights are defined in a consistent way across countries.