BUS 200 Final Exam || A+ GRADED
How do political systems impact business? correct answers •Consumer protection
•Taxation and social charges
•Health and safety at work
•Finance regulation
•Promotion of research and innovation
What is civil society? correct answers •Nongovernmental organizations
•Sphere of activities in society in which citizens are free to pursue personal interests and
associations freely
•Ex) Girl Scouts, religious groups
Define nation-state. correct answers •Authoritative institutions that are responsible for
lawmaking and governance over a defined territory; internal authority and external authority
element
•Institutions
•Sovereignty
•Monopoly over coercive power
Democracy is based on what core belief? correct answers •It includes all citizens
•Constitutional; representative government and elected executive
Why is corruption an issue for foreign investors? correct answers •Breaking the law
•It will be costly
•It is unpredictable
What are some types of political risk to international business? correct answers •War
•Terrorism
•Corruption
•Social unrest
•Arbitrary government actions ex) confiscation without the consent of the owner
, How should potential investors deal with corruption issues? correct answers •They shouldn't
even take part in any corruption
What are the characteristics of the rule of law? correct answers •The law is above the ruler
and the ruled
•Representative institutions
•Accountability of governments
•An independent judiciary
US system: What does criminal law cover? correct answers •Crimes or offenses against
society ex) theft or murder
What is civil law? correct answers •Disputes between private individuals (usually solved by
money)
International system: What characterizes a civil law system? correct answers •Codified
•From the government
•Changeable
•Inflexible
International system: What characterizes common law? correct answers •Case law
•Precedent
•Interpretation
•Honed over time
•From the people
What is the relationship between strong legal protection of property rights and businesses?
correct answers •Prohibits bribes
•Record-keeping
Define property rights. correct answers •A bundle of entitlements defining the owners' rights,
privileges, and limitations for use of resources
What activity do generic manufacturers engage in? correct answers •Producing a good that is
identical to a product that was previously patented after the patent expires
As an MNE seeking to invest overseas, would you prefer a country with a civil or common
law infrastructure under which to negotiate your contracts? Discuss why. correct answers •It
depends on one's opinion. Need to know the definitions to be able to answer it.
How do political systems impact business? correct answers •Consumer protection
•Taxation and social charges
•Health and safety at work
•Finance regulation
•Promotion of research and innovation
What is civil society? correct answers •Nongovernmental organizations
•Sphere of activities in society in which citizens are free to pursue personal interests and
associations freely
•Ex) Girl Scouts, religious groups
Define nation-state. correct answers •Authoritative institutions that are responsible for
lawmaking and governance over a defined territory; internal authority and external authority
element
•Institutions
•Sovereignty
•Monopoly over coercive power
Democracy is based on what core belief? correct answers •It includes all citizens
•Constitutional; representative government and elected executive
Why is corruption an issue for foreign investors? correct answers •Breaking the law
•It will be costly
•It is unpredictable
What are some types of political risk to international business? correct answers •War
•Terrorism
•Corruption
•Social unrest
•Arbitrary government actions ex) confiscation without the consent of the owner
, How should potential investors deal with corruption issues? correct answers •They shouldn't
even take part in any corruption
What are the characteristics of the rule of law? correct answers •The law is above the ruler
and the ruled
•Representative institutions
•Accountability of governments
•An independent judiciary
US system: What does criminal law cover? correct answers •Crimes or offenses against
society ex) theft or murder
What is civil law? correct answers •Disputes between private individuals (usually solved by
money)
International system: What characterizes a civil law system? correct answers •Codified
•From the government
•Changeable
•Inflexible
International system: What characterizes common law? correct answers •Case law
•Precedent
•Interpretation
•Honed over time
•From the people
What is the relationship between strong legal protection of property rights and businesses?
correct answers •Prohibits bribes
•Record-keeping
Define property rights. correct answers •A bundle of entitlements defining the owners' rights,
privileges, and limitations for use of resources
What activity do generic manufacturers engage in? correct answers •Producing a good that is
identical to a product that was previously patented after the patent expires
As an MNE seeking to invest overseas, would you prefer a country with a civil or common
law infrastructure under which to negotiate your contracts? Discuss why. correct answers •It
depends on one's opinion. Need to know the definitions to be able to answer it.
