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

A set of vocabulary flashcards based on Chapter 2, covering the differences in national political, economic, and legal systems.

Political Economy

The political, economic, and legal systems of a country, which are interdependent and influence each other.

Political System

The system of government in a nation, assessed by its emphasis on collectivism or individualism and its degree of democracy or totalitarianism.

Collectivism

A political system that emphasizes collective goals over individual goals.

Socialism

A system based on public ownership of the means of production for the common good.

Communists

Socialists who believe that socialism can be achieved only through a totalitarian dictatorship.

Social Democrats

Socialists who commit themselves to achieving socialism by democratic means.

Privatization

The sale of state-owned enterprises to private investors.

Individualism

Political philosophy based on the tenets that an individual should have freedom in economic and political pursuits and that the welfare of society is best served by letting people pursue their own economic self-interest.

Democracy

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

Totalitarianism

A form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Representative Democracy

A system where citizens periodically elect individuals to represent them, featuring safeguards like freedom of expression, free media, and a fair court system.

Communist Totalitarianism

A form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship.

Theocratic Totalitarianism

A political system monopolized by a party, group, or individual that governs according to religious principles.

Tribal Totalitarianism

A political system in which a party, group, or individual representing the interests of a particular tribe monopolizes political power.

Right-wing Totalitarianism

A system that permits individual economic freedom but restricts individual political freedom (including free speech) to prevent the rise of communism.

Pseudo-democracies

Systems that lie between pure democracies and complete totalitarianism, where authoritarian elements deny basic political and civil liberties.

Market Economy

An economic system where all productive activities are privately owned and production is determined by supply and demand.

Command Economy

An economic system where the government plans the goods and services, quantity, and price, with all businesses being state owned.

Mixed Economy

An economic system where some sectors are privately owned and some are government owned; for example, the U.S. government aided Citigroup and General Motors during the $2008$ recession.

Legal System

The rules or laws that regulate behavior, along with the processes through which laws are enforced and redress for grievances is obtained.

Common Law

A legal system that evolved in England based on tradition, precedent, and custom, allowing for more flexibility than other systems.

Civil Law

A legal system based on detailed laws organized into codes, which is less adversarial than a common law system.

Theocratic Law

A legal system based on religious teachings, with Islamic law being the most common example.

Contract Law

The body of law that governs the enforcement of contracts, which specify conditions for exchange and the rights of involved parties.

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

A uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers in different nations.

Property Rights

The legal rights over the use to which a resource is put and over the use made of any income derived from that resource.

Private Action

Theft, piracy, or blackmail by private individuals or groups directed at property.

Public Action

When public officials extort income, resources, or property from property holders, either legally (e.g., excessive taxation) or illegally (e.g., corruption).

Foreign Corrupt Practices Act (FCPA)

A law making it illegal to bribe a foreign government official to obtain or maintain business and requiring publicly traded companies to keep detailed records.

Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

A $1997$ agreement that makes bribery of a foreign public official a criminal offense, though it allows for facilitating or expediting payments.

Intellectual Property

Property that is the product of intellectual activity, such as computer software, screenplays, or music scores.

Patent

A grant that provides an inventor exclusive rights for a defined period for the manufacture, use, or sale of an invention.

Copyrights

The exclusive legal rights of authors, composers, playwrights, artists, and publishers.

Trademarks

Officially registered designs and names used to differentiate products.

World Intellectual Property Organization (WIPO)

An international organization whose members sign treaties, such as the Paris Convention for the Protection of Industrial Property, to protect intellectual property.

Product Safety Laws

Laws that set certain safety standards to which a product must adhere.

Product Liability

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

Corruption Index

An index where $100$ represents clean and $0$ represents totally corrupt; for example, in $2020$, New Zealand ranked at $88$ and Somalia at $11$.