Deck 6: Political and Legal Environments

Question 1

In the text, the term 'political economy' is used to stress that the political, economic and technical systems of a country are interdependent; that is, they interact and influence each other.

Answer 1

False

Question 2

Intellectual property rights, patent rights, copyright and trademarks are all part of the legal system.

Answer 2

True

Question 3

There are four major forms of totalitarianism: Communist, theocratic, individualistic and right wing.

Answer 3

False

Question 4

The terms 'common law' and 'civil law' cannot be used interchangeably.

Question 5

The free market view (of trade) argues that foreign direct investment only benefits the source country.

Question 6

Democracies are not all the same.

Question 7

In a representative democracy, citizens periodically __________ individuals to represent them.

A) appoint
B) promote
C) elect
D) nominate

Question 8

Totalitarianism is a _________________ system in which one person or political party exercise absolute control over all aspects of life.

A) capitalist
B) political
C) democratic
D) voting

Question 9

When international businesses produce products in lower-cost countries with lower production standards than those in their home country, they:

A) do not face any liability for damage or loss to the ultimate consumer
B) face an ethical dilemma in producing products to the standards required of them which may forgo maximising value to shareholders
C) are liable for the safety of their products only in the country in which they produce them
D) are liable for the safety of their products but not for liability in court actions

Question 10

In Australian labour law, arbitration occurs only when:

A) one party is seen to be more powerful than the other.
B) the parties to an agreement cannot resolve their differences.
C) a third-party mediator cannot be found.
D) the disagreement has been ongoing for a period greater than 24 months.

Question 11

A representative democracy features a number of safeguards that are typically enshrined in constitutional law. Which of the following is not one of those safeguards?

A) Free media
B) Regular elections
C) Free market
D) Universal adult suffrage

Question 12

China's government today is regarded as a form of government in which one person or political party exercises control in ___________ form.

A) Communist
B) theocratic
C) tribal
D) right-wing

Question 13

A notable development over the past 20 years has been the __________ of totalitarianism.

A) fanaticism
B) softening
C) decline
D) growth

Question 14

The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by:

A) totalitarianism.
B) Orthodox Christianity.
C) ethnic strife.
D) modernisation.

Question 15

The term 'property rights' refers to the bundle of legal rights associated with:

A) claiming material possession.
B) a house or land package.
C) outlining legal title.
D) the use to which a resource is put.

Question 16

After the collapse of Communism in Russia, successful business owners often had to pay 'protection money' to the Mafia or face violent retribution. This is an example of:

A) government corruption.
B) public action.
C) private action.
D) property corruption.

Question 17

Public action occurs when public officials such as politicians and government bureaucrats:

A) rally to promote social justice.
B) extort income or resources.
C) survey property owners in order to represent them.
D) seek legal action against the state.

Question 18

The World Bank reports on governance for more than 200 countries. It bases its judgments of governance on six indicators. Which one of the following is not one of those indicators?

A) Voice and accountability
B) Capitalism
C) Government effectiveness
D) Control of corruption

Question 19

Suppose the Telstra Corporation were to develop a new type of mobile phone. Through which kind of protection could Telstra protect its invention?

A) Warrant
B) Patent
C) Copyright
D) Trademark

Question 20

The term 'property' refers to resources over which an individual or business holds legal title. Resources include all except which one of the following?

A) Parcels of land
B) Peace of mind
C) Intellectual property
D) Capital

Question 21

In the 21st century, intellectual property has become an increasingly important source of economic value for businesses as a result of:

A) mobility of the workforce.
B) a high-technology economy.
C) globalisation.
D) theocratic laws.

Question 22

__________ liability involves holding a firm and its officers responsible when a product causes, injury, death or damage.

A) Company
B) Legal
C) Product
D) Contract

Question 23

__________ safety laws set certain safety standards to which ________ must adhere.

A) Turnout; a product
B) Contract; officers responsible
C) Product; product
D) Liability; organisation

Question 24

In Australia, the aim of the Competition and Consumer Act 2010 (Cwlth) is to regulate businesses to ___________ competition and _____________ consumers.

A) control; comfort
B) promote; protect
C) reduce; protect
D) legalise; reassure

Question 25

The __________ system of a country refers to the _____________ that regulate behaviour, along with the processes by which the laws of the country are enforced and through which redress for grievances is obtained.

A) political; processes
B) administrative; public servants
C) economic; structures
D) legal; rules

Question 26

____________ law aims to prevent businesses from obtaining or using market __________ to conduct anticompetitive practices.

A) Systems; competition
B) Action; inconsistencies
C) Political; confusion
D) Competition; power

Question 27

The three types of political risk are:

A) legal, governance and trade.
B) operational, micro and global.
C) ownership-control, operational and transfer.
D) free market, macro and international.

Question 28

Four major forms of totalitarianism exist in the world today. They are Communist totalitarianism, right-wing totalitarianism, _________________ and _________________.

A) theological totalitarianism; native totalitarianism
B) left-wing totalitarianism; religious totalitarianism
C) tribal totalitarianism; theocratic totalitarianism
D) social totalitarianism; central totalitarianism

Question 29

The three main types of legal systems in use at national level around the world are:

A) political, tribal and religious.
B) administrative, political and economic.
C) economic, native and customary.
D) common, civil and theocratic.