Legal Systems and International Business

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What is the characteristic of a mixed legal system?

A mixed legal system combines two or more legal systems within a single country.

What tends to decrease as a country's per capita income increases?

Regulation of business

What is the purpose of country-of-origin labeling (COOL) policies?

To inform consumers and support local producers.

How do national laws and regulations affect a business?

They affect efforts to start a business, enter and enforce contracts, hire and fire employees, and close a business. Signup and view all the answers

What is the inverse relationship observed in business regulation?

A country's tendency to regulate business decreases as its per capita income increases. Signup and view all the answers

What legal issues can shape an international competitor's strategic plans?

Product regulation, including country-of-origin labeling, and other legal contingencies. Signup and view all the answers

What is a key factor that influences country-of-origin regulations?

National security concerns Signup and view all the answers

Why do products often need to be customized when entering a new market?

To comply with local standards, which may be higher than those found in the firm's home market Signup and view all the answers

What is a significant challenge in enforcing intellectual property rights across borders?

Cross-national and cross-cultural legal differences Signup and view all the answers

In which countries are product liability laws often spotty, absent, or arbitrary?

Less developed countries Signup and view all the answers

What determines the law that should apply and where litigation should occur in cross-border disputes?

Legal jurisdiction Signup and view all the answers

What makes intellectual property difficult to protect?

It is difficult to create but easy to duplicate Signup and view all the answers

What is the ultimate test of a political system?

its ability to hold a society together Signup and view all the answers

Why is it important for multinational enterprises to analyze the political environment of a country?

to ensure fit between corporate policies and political and legal conditions of the country Signup and view all the answers

What is the significance of individualism versus collectivism in understanding political systems?

it helps profile similarities and differences among political systems Signup and view all the answers

What is the impact of political system changes on multinational enterprises?

it exposes them to risks Signup and view all the answers

What determines the extent of government intervention in business?

the political system Signup and view all the answers

Why must multinational enterprises consider the political and legal environments of different nations?

to succeed in countries with different political and legal environments Signup and view all the answers