Political Economy and Systems Quiz

Democracy and Representation

• In a representative democracy, citizens elect individuals to represent them.
• This type of democracy is characterized by citizens electing representatives to make decisions on their behalf.

Totalitarianism

• Religious totalitarianism is a type of totalitarianism based on religious principles.

Economic Systems

• In a private enterprise economic system, all productive activities are privately owned, and production is determined by supply and demand.

Legal Systems

• Common law is a legal system based on tradition, precedent, and custom.
• Civil law is a legal system in which contracts are very detailed, with all contingencies spelled out.
• Contract law is the body of law that governs contract enforcement.

Illegal Activities

• Piracy, theft, and blackmail by private individuals or groups are types of illegal activities.
• Extortion by public officials, involving the extortion of income, resources, or property, is also illegal.

International Business and Law

• The Foreign Corrupt Practices Act (FCPA) makes it illegal to bribe a foreign government official to obtain or maintain business.

Intellectual Property

• Intellectual property refers to property that is the product of intellectual activity.
• The World Intellectual Property Organization (WIPO) is responsible for protecting intellectual property internationally.
• Trademarks are used to identify and distinguish products.
• Product safety laws set standards for products.
• Product liability refers to the responsibility of manufacturers and sellers for any harm caused by their products.
• Increasing product liability can be caused by factors such as the complexity of products and the difficulty of proving fault.
• Two broad implications for international business are product liability and intellectual property protection.

Political Systems and Business

• A democratic political system is more attractive for doing business.
• A private enterprise economic system is more attractive for doing business.
• A strong legal system plays a crucial role in international business, as it provides a stable and predictable environment for businesses to operate.
• Ethical issues in international business arise from the intersection of different cultures, laws, and values.

Political Economy

• Political economy is concerned with the interaction between politics and economics.
• Two dimensions used to assess political systems are political ideology and economic system.
• Collectivism emphasizes the interests of the community over those of the individual.
• According to Karl Marx, the owners of the means of production benefit in a capitalist society.
• Individualism prioritizes individual freedom and autonomy.
• The main characteristic of democracy is the protection of individual rights and freedoms.
• The main characteristic of totalitarianism is the concentration of power in the hands of a single ruler or group.
• Freedom and equality are two concepts that go hand in hand.
• Socialism emphasizes social equality and the redistribution of wealth.
• The main difference between communism and social democracy is the role of the state in the economy.