BUSS 313: National Differences in Political and Legal Systems

Comprehensive practice flashcards covering political systems, collectivism vs. individualism, democracy vs. totalitarianism, political risk case studies (US-China trade war, Naver Line, Bolivia resource nationalism, THAAD/Lotte, Turkey central bank), ISDS and MIGA risk mitigation, and legal frameworks.

What is the definition of a country's political economy?

The interdependent political, economic, and legal systems of a country that interact with and influence one another.

Along which two interrelated dimensions can a political system be evaluated?

Collectivism versus individualism, and democratic versus totalitarian.

What are the central tenets of individualism in political philosophy?

An emphasis on guaranteeing individual freedom and self-expression, grounded in the belief that the welfare of society is best served when individuals pursue their own economic self-interest.

What are the core principles of collectivism?

Stressing the primacy of collective goals over individual goals, maintaining that 'the good of society' outweighs individual rights, and advocating state ownership of the basic means of production, distribution, and exchange.

What is a representative democracy, and what constitutional safeguards does it typically include?

A system where citizens periodically elect individuals to represent them, typically safeguarded by constitutional protections including freedom of expression, free media, universal adult suffrage, and a fair court system.

How does totalitarianism differ from democracy?

Under totalitarianism, one person or political party exercises absolute control over all spheres of human life and outlaws opposing political parties, whereas democracy places governance in the hands of the people directly or through elected representatives.

What major global trend in democratization was recorded between $1972$ and $2022$, and when did progress begin to falter?

The proportion of countries rated Free generally increased over the $50$-year span, but global progress faltered beginning in the early $2000\text{s}$.

Based on this summary table from Freedom in the World 2023, how many countries and territories were rated Free, Partly Free, and Not Free?

There were $84$ Free countries ($1$ territory), $54$ Partly Free countries ($4$ territories), and $57$ Not Free countries ($10$ territories), totaling $195$ countries and $15$ territories ($210$ total).

Which major global events in $1991$ enabled several countries to transition out of the 'Not Free' category?

The dissolution of the Soviet Union and a wave of democratization across Africa.

How is political risk defined for multinational enterprises (MNEs)?

The risk that political decisions or events occurring in a host country will negatively affect the profitability or sustainability of an investment.

When did Donald Trump initiate the US–China trade war, and what action triggered it?

In $2018$, by imposing raised tariff barriers on imports originating from China.

How does Pankaj Ghemawat define the threshold for 'China dominates' in global merchandise trade?

China having more than twice as much trade with a third country as the United States does with that same country.

Why was Naver forced to shut down its messaging platform Line in China despite launching successfully in $2014$?

Due to a Chinese government policy that restricted and limited foreign messenger applications.

Under President Evo Morales, what resource nationalism policies were enacted in Bolivia on May 1, 2006, and May 1, 2010?

On May 1, 2006 ($2006.05.01$), Bolivia nationalized domestic and foreign oil and natural gas companies; on May 1, 2010 ($2010.05.01$), it nationalized foreign electronic firms.

What retaliation did Lotte Group face in China after providing its Seongju Golf Course for US THAAD missile defense installation in Korea in $2016$?

$87$ of its $99$ Lotte Mart stores in China were ordered closed due to alleged fire prevention issues and public boycotts, producing a $32.6\%$ sales decline in 2017 1Q, an estimated suspension cost of $\$270\text{ million}$, and cumulative losses topping $\$1\text{ billion}$.

What political event triggered a $15\%$ plunge in the Turkish lira on March 19, 2021?

President Recep Tayyip Erdogan abruptly fired the governor of Turkey's central bank at midnight on a Friday.

How is an Investor-State Dispute Settlement (ISDS) arbitration tribunal structured?

It consists of three members: one selected by the foreign investor, one appointed by the host country government, and a presiding third arbitrator chosen by mutual agreement of both parties.

What claim did Lone Star bring against the South Korean government under ISDS, and what was the ruling in August 2022?

Lone Star filed an ISDS claim for $\$4.7\text{ billion}$, leading to an August $2022$ arbitral award ordering the South Korean government to pay $\$216\text{ million}$.

What five non-commercial risk categories does the Multilateral Investment Guarantee Agency (MIGA) insure against for cross-border investments?

Breach of Contract, Currency Inconvertibility and Transfer Restriction, Expropriation, War and Civil Disturbance, and Non-Honoring of Financial Obligations.

How do common law systems differ from civil law systems regarding the role of judges?

In common law systems (e.g., US, Canada, Australia), judges interpret laws based on tradition, precedent, and custom; in civil law systems (e.g., Korea, Germany, France), judges have power only to apply comprehensive legal codes.

How do patents, copyrights, and trademarks differ as forms of intellectual property protection?

Patents grant inventors exclusive manufacturing/commercial rights for a defined timeframe; copyrights give authors, composers, and artists exclusive publishing rights; trademarks protect officially registered names and symbols used to differentiate products.