Quick Study Questions
Quick Study 1
1. Q: What features characterize the political ideology called pluralism?
A: Pluralism is the belief that both private and public groups play important roles in a nation’
political activities. Each group (consisting of people with different ethnic, racial, class and
2. Q: Communists believe that a violent revolution is needed to seize control over resources, wish
to eliminate political opposition, and do what else?
A: A communist government has sweeping political and economic powers. In this type of
3. Q: What does a representative democracy strive to provide for its people?
A: Representative democracies strive to provide some or all of the following: (1) freedom of
nonpolitical bureaucracies.
4. Q: By what other name is capitalism referred?
A: Capitalism is also frequently referred to as the free market.
Quick Study 2
1. Q: What factors contributed to the decline of centrally planned economies?
A: Factors that contributed to the decline of centrally planned economies include: (1) failure to
2. Q: Which economic system strives toward low unemployment, low poverty, steady economic
growth, and an equitable distribution of wealth?
A: The goals of a market economy are low unemployment, low poverty, steady economic
growth and an equitable distribution of wealth.
3. Q: Laissez-faire economics calls for less government interference in commerce and what else?
A: This approach not only called for less government interference, but also greater individual
economic freedom.
4. Q: Countries with the greatest amount of freedom tend to have what?
A: Countries with the greatest economic freedom tend to have the highest standard of living.
Quick Study 3
1. Q: Which legal system decides cases by interpreting the law on the basis of tradition,
precedent, and usage?
A: Under common law, the justice system decides cases by interpreting the law on the basis of
2. Q: Which legal system is based on a detailed set of written rules and statutes that constitute a
legal code?
A: Civil law is a system based on a detailed set of written rules and statutes that constitute a
legal code.
3. Q: A legal tradition based on religious teachings is called what?
A: A legal tradition based on religious teaching is called theocratic law.
Quick Study 4
1. Q: What are some examples of intellectual property rights?
A: Intellectual property rights are legal rights to resources that result from intellectual abilities
and any income these resources generate. Like other types of property, intellectual property can
2. Q: What are the different types of industrial property?
A: Industrial property includes patents and trademarks. A patent is a right granted to the
inventor of a product or process that excludes others from making, using, or selling the
3. Q: Laws that hold manufacturers, sellers, individuals, and others responsible for damage,
injury, or death caused by defective products are called what?
A: Product liability laws hold manufacturers, sellers, and others responsible for damage, injury,
or death caused by defective products. They differ greatly from one nation to another. The
Quick Study 5
1. Q: The essence of which philosophy is captured by the expression, “When in Rome, do as the
Romans do”?
A: The expression captures the essence of cultural relativism. This view states that a company
a cultural context.
2. Q: Possible consequences of corruption include what?
A: Corruption is detrimental to society and business. Corruption can send resources toward
integrity.
3. Q: What are some criteria a product must meet to be Fair Trade certified?
A: Fair Trade certifies that a product meets the following criteria: (1) fair prices, (2) fair labor
conditions, (3) direct trade, (4) democratic community, and (5) environmental sustainability.
4. Q: The environmental impact of greenhouse gases that result from human activity is called
what?
A: Carbon footprint is the environmental impact of greenhouse gases that result from human
activity.
Ethical Challenge
You are the proprietor of a fledgling computer graphics company in Shanghai, China. The
sophisticated business application software you need for your business normally sells for 2,900
renminbi (around $350) at computer stores in Shanghai and online. But with an income of just over
$5,000 a year, you cannot afford to buy the original graphics software for your business. An associate
has told you she can get you all the software you need, and more, for only $30. Yet, you have
financially strapped friends who code software for the global software companies that make the very
programs you need.
3-5 Do your personal circumstances make it ethical for you to purchase the pirated software?
A: Entrepreneurs who have just started a company with limited resources may turn to pirated
software to keep cost down. Is the use of the pirated software justified? Is it ethical to assume
3-6 What would you do if you were told of a new government effort to actively punish users of
pirated software?
A: Student answers will vary. Many students will probably hold the belief that online software
punish users, the possibility of criminal punishment would make them reconsider.
3-7 Does a software company bear any responsibility for subcontracting work to low wage markets
where its finished product is unaffordable for the same coders who worked on it?
A: This question forces students to consider the piracy issue from the perspective of a budding
entrepreneur who cannot possibly afford the legal version of the software. One option that
students often suggest is for companies to offer their products at reduced prices in markets
where piracy is rampant. However, the company must be able to ensure that products are not
Teaming Up
Debate Project. Two groups of four students each will debate the ethics of doing business in countries
with totalitarian governments. After the first student from each side has spoken, the second student will
question the opposing side’s arguments, looking for holes and inconsistencies. The third student will
attempt to answer these arguments. A fourth student will present a summary of each side’s arguments.
Finally, the class will vote to determine which team has offered the more compelling argument.
A: Students arguing in favor of entering countries with totalitarian governments should consider the
perspective of companies based in like countries, not just democratic ones. Many students will
overlook the fact that many companies based in totalitarian countries do business in other like
Likewise, students arguing against entering totalitarian countries must grapple with whether
their not investing will create political change—it oftentimes does not. These students will also need to
Practicing International Management Case
Pirates of Globalization
3-16 Q: What more do you think that the international business community could do to protect
intellectual property rights?
A: Student answers will vary. The first step a business should take with their intellectual
property is to protect it both at home and in the other countries where they do business and
source products. Intellectual property rights are territorial, meaning, for example, a U.S. patent
Companies need to examine their business to see what might be eligible for a patent, trademark,
copyright or trade secret status.
specific intellectual property clauses protecting their rights.
3-17 Q: Are international companies simply afraid to speak out against counterfeiting in potentially
lucrative emerging markets for fear of being denied access to them?
A: This question gets students to consider the ramifications of cracking down on counterfeiters
in lucrative markets. A policy of zero tolerance in some developing and emerging markets may
3-18 Q: By using the latest technologies, people can often create prefect clones of original works.
How are the Internet and the latest digital technologies influencing intellectual property laws?
A: The spectacular growth of e-business conducted over the Internet will force a reevaluation of
intellectual property laws. Holders of intellectual property will likely want existing laws revised
3-19 Q: Locate information on the Tiffany versus eBay lawsuit and identify each sides arguments
and who prevailed. What are the implications of that lawsuit for the sale of counterfeits in
online auctions?
A: Tiffany’s allegation that eBay contributed directly to infringement of the Tiffany trademark
due to the sale of counterfeit Tiffany jewelry is a strong warning to online auction houses. The