International Business Chapter 2 Questions and Answers Already Passed

International Business Chapter 2 Questions and Answers Already Passed 4 types of political systems 1) Individualism 2) Collectivism 3) Democracy 4) Totalitarianism Collectivism stresses the needs of society as a whole - those needs are more important (ex: socialism) Socialism a system that is characterized by public ownership of key industries and private ownership of less vital industries 2 other types of collectivism created by socialism 1) communism 2) social democracy communism all productive resources are publicly owned social democracy socialism is voted in by the people Individualism a system based on the belief that individuals should have both economic and political freedom - free market system - USA - we actually don't have complete control even though it was built off this system Democracy a system in which the government is formed by the people through electing representatives; Also known as a representative democracy Totalitarianism a system in which all constitutional guarantees are denied to all citizens 4 types of totalitarianism 1) communist - denies all civil liberties 2) theocratic - govern according to religion 3) tribal - govern based on representing a certain tribe 4) Right-wing - allows some economic freedom as long as it doesn't lead to communism 3 types of economies 1) market economy 2) command economy 3) mixed economy market economy all productive resources are privately owned command economy all productive resources are publicly owned mixed economy there is both market freedom and government control legal system a system of rules and laws that regulate behavior and provides a process of grievances The legal system is important to globalization because it defines 2 things 1) the manner in which business transactions are to be executed 2) the rights and obligations of those involved