The Legal Environment Quiz

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What are the three components of modern legal systems?

Commercial law, Customary law, and International law

Constitutional law, Criminal law, and Civil and Commercial law (correct)

Civil law, Common law, and Theocratic law

Constitutional law, Criminal law, and Human rights law

Which type of legal system is based on a detailed set of laws that comprise a code?

Theocratic law

Common law

Civil law (correct)

Customary law

Which countries are examples of common-law nations?

France, Germany, and Japan

Australia, Canada, and the United States (correct)

China, India, and Russia

Iran, Saudi Arabia, and Pakistan

What is the basis of Theocratic law?

Religious precepts (D) Signup and view all the answers

What is the role of courts in Common law systems?

To interpret the law (B) Signup and view all the answers

What type of legal system is based on daily experience or great spiritual or philosophical traditions?

Customary law (B) Signup and view all the answers

What is a characteristic of a mixed legal system?

It combines two or more legal systems within a single country (A) Signup and view all the answers

In which countries are most mixed legal systems found?

Africa and Asia (A) Signup and view all the answers

What is a key factor in shaping a country's legal system and business regulations?

Per capita income (B) Signup and view all the answers

What is a common legal contingency that affects international competitors' strategic plans?

Product regulation (D) Signup and view all the answers

Which of the following is a consequence of a country making it easy to start a business?

Fewer and simpler regulations for hiring and firing workers (D) Signup and view all the answers

What is a common goal of country-of-origin labeling policies?

To support local producers (A) Signup and view all the answers

What is the primary function of a political system?

To integrate various parts of a society into a viable, functioning entity (C) Signup and view all the answers

What is the ultimate test of any political system?

Its ability to hold a society together (B) Signup and view all the answers

What is the main consideration for MNEs operating internationally?

Differences in political and legal environments (B) Signup and view all the answers

What is the significance of understanding the political environment for MNEs?

It allows MNEs to assess the fit between their corporate policies and the political conditions of a country (B) Signup and view all the answers

What is the primary distinction between individualism and collectivism?

The importance of individual rights versus collective rights (A) Signup and view all the answers

What is the impact of changes in a country's political system on MNEs?

It exposes MNEs to risks arising from changes in the political system (B) Signup and view all the answers