Deck 6: Political and Legal Environments

Question 1

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

Answer 1

True

Question 2

In a representative democracy,citizens periodically ______ndividuals to represent them.

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

Answer 2

C

Question 3

A representative democracy has a number of safeguards that are typically enshrined in ______aw.

A)common
B)confrontational
C)constitutional
D)concept

Answer 3

C

Question 4

When international businesses who produce products in lower-cost countries with lower production standards than 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)produce only for mass markets which lock-in profits.
D)are liable for safety of their products but not liability in court actions.

Question 5

Pragmatic nationalism has been adopted from economic rationalism.

Question 6

The Australian Competition and Consumer Commission (ACCC)aims to promote competitive markets by preventing businesses from obtaining or abusing market power.

Question 7

A socialist 'left-leaning' ideology would support ________________ for government as currently operating in Western market economies.

A)dual ownership and small-scale infrastructure planning
B)active government intervention at times of market failures
C)bottom-up/top down decision making
D)little or no role

Question 8

Common law is the same as civil law.

Question 9

In Australian labour law,the parties to an agreement resort to _________ only when the parties (unions and management)cannot resolve their differences.

A)conciliation
B)arbitration
C)a third-party mediator
D)contract law

Question 10

Tribal totalitarianism that represents the interests of a particular tribe monopolising power is found mainly in:

A)ArgentinA.
B)Africa.
C)America.
D)Antarctica.

Question 11

The free market view (of trade)argues that FDI is a benefit to both the home country and the host country.

Question 12

A more liberal 'right-leaning' ideology would see the government's role as one of facilitating within:

A)a market system and private enterprise.
B)a command system and public enterprise.
C)a laissez-faire system with no enterprise.
D)an autocracy.

Question 13

China today is regarded as a form of government in which one person or political party exercise control in ______form.

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

Question 14

The free market view argues that international production should be distributed among countries according to the theory of competitive advantage.

Question 15

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

Question 16

A notable development over the past 20 years has been the development of a ______emocracy.

A)right-wing
B)left-wing
C)growing
D)declining

Question 17

The term 'governance' is a synonym for 'government'.

Question 18

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

Question 19

All democracies are the same.

Question 20

African countries such as Zimbabwe,Tanzania,Uganda and Kenya display which of the following totalitarian states?

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

Question 21

The International Federation of the Phonographic Industry claims that in 2009,about _________ of all recorded music products around the globe were illegally produced and sold.

A)ten per cent
B)thirty per cent
C)fifty per cent
D)eighty per cent

Question 22

Due to weak legal enforcement options and the inability of governments to action on matters such as theft,piracy and blackmail,this has paved the way for __________ to take effect.

A)public action
B)private action
C)contract action
D)official action

Question 23

The rise of the ____________rtrayed as a response to the alienation produced by modernisation.

A)Tamil tigers
B)Orthodox Christians
C)Taliban
D)Islamic fundamentalists

Question 24

Parties to a business agreement normally resort to contract law when one party feels the other has violated either the letter or the spirit of an agreement.Because common law tends to be relatively ill-specified,contracts drafted under a common law framework tend to be:

A)summarised with brief explanations attached.
B)very detailed with all contingencies spelled out.
C)referred to solicitors for comment.
D)non-retractable once approveD.

Question 25

Economic evidence suggests that high levels of ________ significantly reduce the foreign direct investment,level of international trade and economic growth rate in a country.

A)policing
B)corruption
C)transparency
D)capitalism

Question 26

In Australia,the Trade Practices Act 1974 (Cwlth)has its basis in ______ability legislation.

A)commodities
B)product
C)services
D)people

Question 27

______et certain safety standards to which a product must adhere.

A)Turnout safety laws
B)Product liability laws
C)Product safety laws
D)Contract liability laws

Question 28

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 29

A resource over which an individual or business holds a legal title is called:

A)a material possession.
B)a deed.
C)land.
D)property.

Question 30

As a result of ______rotection,authors,playwrights,artists and publishers are afforded exclusive rights to disperse their work as they see fit.

A)trademark
B)copyright
C)patent
D)warrant

Question 31

An expression of liberalism that supports private ownership and individual enterprise and advocates the free flow of foreign capital in order to maximise national and global economic wellbeing is an example of which type of attitude towards FDI?

A)radical view
B)free market view
C)pragmatic nationalism
D)capitalist-imperialist

Question 32

According to Transparency International,which country was found to be MOST corrupt in 2011?

A)Indonesia
B)Brazil
C)Syria
D)Bangladesh

Question 33

Patents,copyrights and trademarks are examples of ______roperty laws.

A)intellectual
B)administrative
C)official
D)central

Question 34

When public officials,such as politicians and government bureaucrats,extort income or resources from property holders,this can be described as:

A)patents.
B)public action.
C)warrants.
D)private action.

Question 35

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

A)Turnout
B)Contract
C)Product
D)Outcome

Question 36

A composer is able to protect an original musical score from being copied and sold by someone else through ______rotection.

A)patent
B)warrant
C)trademark
D)copyright

Question 37

According to Business Software Alliance,which region had the highest piracy rates in 2011?

A)Asia Pacific
B)North America
C)Central and Eastern Europe
D)The Middle East and Africa

Question 38

The bundle of legal rights over the use to which a resource is put,and over the use made of any income that may be derived from that resource,are called ______ights.

A)statutory
B)asset
C)taxable
D)property

Question 39

Suppose the Telstra Corporation develops a new type of mobile phone.Telstra can protect its invention through what kind of protection?

A)warrant
B)patent
C)copyright
D)trademark

Question 40

The theft,piracy or blackmail by private individuals or groups refers to:

A)deliberate corruption.
B)individual action.
C)government corruption.
D)private action.

Question 41

The parties to an agreement normally resort to _________ when one party feels the other has violated either the letter of the spirit of the agreement.

A)property law
B)arbitration
C)a third-party mediator
D)contract law

Question 42

______isk has been defined as the likelihood that political forces will cause drastic changes in a country's business environment that adversely affect profit and other goals of a business enterprise.

A)Legal
B)Operational
C)Political
D)Transfer

Question 43

Political systems can be assessed according to two related dimensions:

A)the degree to which they emphasise individualism opposed to totalitarianism,and the degree to which they are individualistic verses democratic.
B)the degree to which they are market-orientated opposed to production-orientated,and the degree to which they are democratic verses individualistic.
C)the degree to which they emphasise social democracy opposed to Communism,and the degree to which they emphasise collectivism opposed to individualism.
D)the degree to which they emphasise collectivism opposed to individualism,and the degree to which they are democratic or totalitarian.

Question 44

The bargaining power of the firm and host government when considering the benefits of FDI,the restrictions on access and concessions the firm must make depends on all of the following factors except:

A)the value each side places on what the other has to offer.
B)political risk on behalf of the government and economic risk on behalf of the firm.
C)the number of comparable alternatives available to each side.
D)each party's time horizon.

Question 45

Competition law aims to prevent businesses from obtaining or using ______wer to conduct anticompetitive practices.

A)personal
B)normative
C)coercive
D)market

Question 46

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

A)political system
B)administrative system
C)economic structure
D)legal system

Question 47

A law system that is based primarily on religious teachings refers to a:

A)civil law system.
B)theocratic law system.
C)common law system.
D)traditional law system.

Question 48

If Qantas Airlines decides to move maintenance of its aircraft to India to take advantage of lower labour costs in that country,such a move as this can be seen to ______erall efficiency in the ______conomy.

A)increase;world
B)increase;local
C)decrease;local
D)decrease;world

Question 49

A political system in which citizens periodically elect individuals to represent them is referred to as a __________.

A)participatory collective
B)totalitarian democracy
C)representative democracy
D)socialistic democracy

Question 50

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

A)political system
B)administrative system
C)economic structure
D)legal system