Deck 4: Analyzing Political and Legal Environments

Question 1

Approximately 30% of the world's gross domestic product is generated in countries using which legal system(s)?

A) Common and civil law
B) Common law
C) Roman law
D) Islamic
E) United Nations Convention

Answer 1

A

Question 2

Which of the following statements about Islamic law is true?

A) It is very predictable because it comes from strict commandments.
B) There are some vague areas.
C) It is based on principles rather than examples.
D) Islamic Gulf States all have different corporate law.
E) It shares commonalities with the Napoleonic Code.

Answer 2

B

Question 3

Parallel importing refers to:

A) using dual distribution systems.
B) the requirements of importing and exporting equal amounts that are parallel.
C) when identical goods are sold without the authorization of the owner of the trademark.
D) offsetting exchanges of goods.
E) always illegal.

Answer 3

C

Question 4

Which of the following statements about trademarks is INCORRECT?

A) Trademarks can be renewed forever as long as they are used.
B) Trademark protection requirements vary by country.
C) Trademarks protect the words, names, color or symbols that distinguish goods.
D) Trademarks always cover similarly named goods and services.
E) China's "first to file" law requires no evidence of prior ownership.

Question 5

Which statement about patent law is incorrect?

A) It provides protection giving the exclusive right to make, use or sell a concept or invention for its duration.
B) There are a number of different patent agreements such as the Patent Cooperation Treaty.
C) Patent agreements seek to simplify the process.
D) Patent agreements seek to grant patent rights in all of the member nations that are party to the agreement.
E) Patents can be renewed forever as long as they are used.

Question 6

Which is correct about copyright?

A) Copyright can extend past the death of the author.
B) Copyright dies with the author of the work.
C) Copyright covers inventions and brand names.
D) Copyright law is uniform worldwide.
E) Copyright does not protect against unauthorized recording of live performances.

Question 7

Trade secrets may be protected by

A) formal "trade secret" registration that retains the "trade secret" status.
B) nondisclosure agreements and injunctions.
C) establishment of being in the "first to use" of a triad cohort of concurrently using companies.
D) revocation of the professional licenses of disclosing employees.
E) nothing as there is no means of protection for trade secrets.

Question 8

Since World War II, the major organization(s) to codify trade regulation has been ___.

A) the United Nations
B) the United Kingdom
C) first GATT, then the WTO
D) the European Union (formerly the European Economic Community)
E) NASDAQ

Question 9

The possible ways to settle a dispute between businesses, countries, and/or individuals are:

A) binding mediation, arbitration, and litigation.
B) litigation through a mediator, tribunals, and predetermined fines.
C) mediation, incarceration, and arbitration.
D) mediation, arbitration, and litigation.
E) mediation, inquisition, and litigation.

Question 10

Which is incorrect about managing political risk?

A) Political risk may be insured against.
B) Political risk may be reduced by sharing company ownership with host country nationals.
C) Political risk may be reduced by promoting social welfare projects.
D) Political risk may be reduced by reaching out to host government and union representatives.
E) Political risk is not a concern for companies that are strictly business because they are not involved in politics.

Question 11

Why would a company prefer mediation instead of arbitration?

Question 12

Terrorism is often considered in political terms, but what are some of the business and marketing concerns?