2. National Differences in Political, Economic, and Legal Systems

political economy

The political, economic, and legal systems of a country.

political system

System of government in a nation.

collectivism

A political system that emphasizes collective goals as opposed to individual goals

socialists

Those who believe in public ownership of the means of production for the common good of society.

communists

Those who believe socialism can be achieved only through revolution and totalitarian dictatorship.

social democrats

Those committed to achieving socialism by democratic means.

privatization

The sale of state-owned enterprises to private investors.

individualism

An emphasis on the importance of guaranteeing individual freedom and self-expression.

democracy

Political system in which government is by the people, exercised either directly or through elected representatives.

totalitarianism

Form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited.

representative democracy

Political system in which citizens periodically elect individuals to represent them in government.

communist totalitarianism

A version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship.

theocratic totalitarianism

Political system in which political power is monopolized by a party, group, or individual that governs according to religious principles

tribal totalitarianism

Political system in which a party, group, or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power

right-wing totalitarianism

Political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, often on the grounds that it would lead to the rise of communism.

market economy

An economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced.

command economy

An economic system where the allocation of resources, including determination of what goods and services should be produced, and in what quantity, is planned by the government.

legal system

System of rules that regulate behavior and the processes by which the laws of a country are enforced and through which redress of grievances is obtained.

common law

A system of law based on tradition, precedent, and custom; when law courts interpret common law, they do so with regard to these characteristics.

civil law system

A system of law based on a very detailed set of written laws and codes.

theocratic law system

A system of law based on religious teachings.

contract

A document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

contract law

The body of law that governs contract enforcement.

United Nations Convention on Contracts for the International Sale of Goods (CISG)

A set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of businesses in different nations.

property rights

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.

private action

Violation of property rights through theft, piracy, blackmail, and the like by private individuals or groups

public action

The extortion of income or resources of property holders by public officials, such as politicians and government bureaucrats.

Foreign Corrupt Practices Act (FCPA)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

intellectual property

Products of the mind, ideas (e.g., books, music, computer software, designs, technological know-how); intellectual property can be protected by patents, copyrights, and trademarks.

patent

Grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention.

copyrights

The exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

trademarks

The designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products.

World Intellectual Property Organization

International organization whose members sign treaties to agree to protect intellectual property.

Paris Convention for the Protection of Industrial Property

International agreement to protect intellectual property.

product liability

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