Question 1

The term ________ stresses that the political, economic, and legal systems of a country are interdependent.

Accepted Answer

The term political economy stresses that the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so, they affect the level of economic well-being.

Question 2

The Trade-Related Aspects of Intellectual Property Rights agreement attempts to reduce intellectual property protections to enhance trade.

Accepted Answer

Under the agreement known as the Trade-Related Aspects of Intellectual Property Rights (TRIPS), as of 1995 a council of the World Trade Organization is overseeing enforcement of much stricter intellectual property regulations. These regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

Question 3

Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?

Accepted Answer

The second tenet of individualism is that the welfare of society is best served by letting people pursue their own economic self-interest, as opposed to some collective body (such as government) dictating what is in society's best interest. Or, as Adam Smith put it in a famous passage from The Wealth of Nations, "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention… ."

Question 4

In a(n) ________ society, the welfare of society is best served by letting people pursue their own economic self-interest.

Accepted Answer

Individualism refers to a philosophy that an individual should have freedom in his or her economic and political pursuits. In contrast to collectivism, individualism stresses that the interests of the individual should take precedence over the interests of the state.

Question 5

Modern socialism has been popularized largely through the work of

Accepted Answer

Modern socialists trace their intellectual roots to Karl Marx (1818-1883), although socialist thought clearly predates Marx (elements of it can be traced to Plato). Marx argued that the few benefit at the expense of the many in a capitalist society where individual freedoms are not restricted.

Question 6

When Penelope returned home from vacation, she found her store had been robbed and her most valuable merchandise was gone. This violation of property rights is considered private action.

Accepted Answer

In terms of violating property rights, private action refers to theft, piracy, blackmail, and the like by private individuals or groups.

Question 7

Modern socialists trace their intellectual roots to ________, although socialist thought clearly predates this individual.

Accepted Answer

Modern socialists trace their intellectual roots to Karl Marx (1818-1883), although socialist thought clearly predates Marx (elements of it can be traced to Plato).

Question 8

The political systems of a country raise ethical issues that have implications for the practice of international business.

Accepted Answer

The political, economic, and legal systems of a country raise important ethical issues that have implications for the practice of international business. For example, what ethical implications are associated with doing business in totalitarian countries where citizens are denied basic human rights, corruption is rampant, and bribes are necessary to gain permission to do business?

Question 9

When ________ is emphasized, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society."

Accepted Answer

When collectivism is emphasized, the needs of society as a whole are generally viewed as being more important than individual freedoms. In such circumstances, an individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" or to "the common good."

Question 10

Systems that emphasize collectivism tend toward

Accepted Answer

The democratic-totalitarian dimension is not independent of the individualism-collectivism dimension. Democracy and individualism go hand in hand, as do the communist version of collectivism and totalitarianism. However, gray areas exist; it is possible to have a democratic state in which collective values predominate, and it is possible to have a totalitarian state that is hostile to collectivism and in which some degree of individualism-particularly in the economic sphere-is encouraged.

Question 11

A political system that prioritizes the needs of the society over individual freedoms is called

Accepted Answer

Collectivism refers to a political system that stresses the primacy of collective goals over individual goals. When collectivism is emphasized, the needs of society as a whole are generally viewed as being more important than individual freedoms.

Question 12

Interdependent political, economic, and legal systems of a country make up its

Accepted Answer

The term political economy is used to stress that the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being.

Question 13

Plato ________; he believed that society should be stratified into classes, with those best suited to rule administering society for the benefit of all.

Accepted Answer

Advocacy of collectivism can be traced to the ancient Greek philosopher Plato. Plato did not equate collectivism with equality; he believed that society should be stratified into classes, with those best suited to rule (which for Plato, naturally, were philosophers and soldiers) administering society for the benefit of all.

Question 14

Product liability can be much lower if a product does not conform to required safety standards.

Accepted Answer

Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage. Product liability can be much greater if a product does not conform to required safety standards.

Question 15

________ argued that individual diversity and private ownership are desirable.

Accepted Answer

Aristotle argued that individual diversity and private ownership are desirable. According to Aristotle, communal property receives little care, whereas property that is owned by an individual will receive the greatest care and therefore be most productive.

Question 16

Manchu believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. Manchu was likely a

Accepted Answer

The communists believed that socialism could be achieved only through violent revolution and totalitarian dictatorship, whereas the social democrats committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship.

Question 17

What term is used to describe a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties?

Accepted Answer

Many of the world's nations are neither pure democracies nor iron-clad totalitarian states. Rather they lie between pure democracies and complete totalitarian systems of government. They might be described as imperfect or pseudo-democracies, where authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties.

Question 18

Product liability sets certain safety standards to which a product must adhere.

Accepted Answer

Product safety laws set certain safety standards to which a product must adhere. Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage.

Question 19

________ generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.

Accepted Answer

Right-wing totalitarianism generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism. A common feature of many right-wing dictatorships is an overt hostility to socialist or communist ideas.

Question 20

________ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

Accepted Answer

Tribal totalitarianism has arisen from time to time in African countries such as Zimbabwe, Tanzania, Uganda, and Kenya. The borders of most African states reflect the administrative boundaries drawn by the old European colonial powers rather than tribal realities. Consequently, the typical African country contains a number of tribes (e.g., in Kenya there are more than 40 tribes). Tribal totalitarianism occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.

Quiz 2: National Differences in Political, Economic, and Legal Systems