political system
structures, processes, and activities by which a nation governs itself
totalitarian system
political system in which individuals govern without the support of the people, tightly control people's lives, and do not tolerate opposing viewpoints
theocracy
political system in which a country's religious leaders are also its political leaders
theocratic totalitarianism
political system under the control of totalitarian religious leaders
secular totalitarianism
political system in which leaders rely on military and bureaucratic power
communism
belief that social and economic equality can be obtained only by establishing an all-powerful Communist Party and by granting the government ownership and control over all types of economic activity
socialism
belief that social and economic equality is obtained through government ownership and regulation of the means of production
democracy
political system in which government leaders are elected directly by the wide participation of the people pr by their representatives
representative democracy
democracy in which citizens elect individuals from their groups to represent their political views
private sector
segment of the economic environment comprising independently owned firms that seek to earn profits
capitalism
belief that ownership of the means of production belongs in the hands of individuals and private businesses
political risk
likelihood that a society will undergo political changes that negatively affect local business activity
confiscation
forced transfer of assets from a company to the government without compensation
expropriation
forced transfer of assets from a company to the government with compensation
nationalism
government takeover of an entire industry
local content requirements
laws stipulating that a specifies amount of a good or service be supplied by producers in the domestic market
lobbying
policy of hiring people to represent a company's view on political matters
Foreign Corrupt Practices Act
a 1977 statute that forbids US companies from bribing government officials or political candidates in other nations
legal system
set of laws and regulations, including the processes by which a country's laws are enacted and enforced and the ways in which its courts hold parties accountable for their actions
nationalism
devotion of a people to their nation's interests and advancement
common law
legal system based on tradition, precedent, and usage
civil law
legal system based on a detailed set of written rules and statutes that constitute a legal code
theocratic law
legal system based on religious teachings
intellectual property
property that results from people's intellectual talent and abilities
property rights
legal rights to resources and any income they generate
industrial property
patents and trademarks
patent
property right granted to the inventor of a product or process that excludes other from making, using, or selling the invention
trademark
property right in the form of words or symbols that distinguish a product and its manufacturer
copyright
property right giving creators of original works the freedom to publish or dispose of them as they choose
Berne Convention
international treaty that protects copyrights
product liability
responsibility of manufactures, sellers, individuals, and other for damage, injury, or death caused by defective products
Value added tax (VAT)
tax levied on each party that adds value to a product throughout its production and distribution
antitrust (anti-monopoly) laws
laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages
ethical behavior
personal behavior in accordance with guidelines for good conduct or morality
corporate social responsibility
practice of companies going beyond legal obligations to actively balance commitments to investors, customers, other companies, and communities
carbon footprint
environmental impact of greenhouse gasses that result from human activity
united nations (UN)
international organization formed after World War II to provide leadership in fostering peace and stability around the world