Question 1

Before a court assumes jurisdiction over an international business dispute, the issue must have a connecting factor.

Accepted Answer

A) True 
 B)False

Question 2

Canada imposes import quotas on certain goods/products, including textiles.

Accepted Answer

A) True 
 B)False

Question 3

What are "Incoterms"?

Accepted Answer

This is a set of standard term

Question 4

The abbreviation EXW in relation to international trade means the seller should deliver the goods to the buyer's home.

Accepted Answer

A) True 
 B)False

Question 5

NAFTA currently allows anti- dumping and countervailing duties on imported goods between Canada and the U.S. However, in the long term, NAFTA is requiring both countries to

Accepted Answer

A)  establish common rules on subsidies and on anti- competitive practices such as dumping. 
B)  ensure each other that the national laws of the other country are being constantly updated. 
C)  apply its own anti- dumping and countervail laws. 
D)  voluntarily give restitution to each other's claims. 
E)  do a better job at policing their own borders. 
A)  establish common rules on subsidies and on anti- competitive practices such as dumping. 
B)  ensure each other that the national laws of the other country are being constantly updated. 
C)  apply its own anti- dumping and countervail laws. 
D)  voluntarily give restitution to each other's claims. 
E)  do a better job at policing their own borders.

Question 6

The practice whereby goods are sold for prices that are below that for which the goods are sold in the country of origin, is called most favoured nation treatment.

Accepted Answer

A) True 
 B)False

Question 7

What is the proper law of an international contract?

Accepted Answer

The proper law is the law the parties in

Question 8

The government is more restrictive on foreign ownership in some business sectors than in others. Which sector would have the LEAST restrictions?

Accepted Answer

A)  film making 
B)  tourism 
C)  book publishing 
D)  banking 
E)  fishing 
A)  film making 
B)  tourism 
C)  book publishing 
D)  banking 
E)  fishing

Question 9

A buyer in British Columbia purchases equipment from a manufacturer in China. The contract between the parties stipulates that any dispute between the parties arising out of the transaction will be decided by an arbitrator in Switzerland. The buyer is not satisfied with the quality of the equipment and brings the dispute before an arbitrator in Switzerland. What law will the arbitrator apply to resolve the dispute?

Accepted Answer

A)  the law of British Columbia 
B)  the law of China 
C)  the law that has the closest connection with the contract 
D)  the law of Switzerland 
E)  the law that the parties agree should apply 
A)  the law of British Columbia 
B)  the law of China 
C)  the law that has the closest connection with the contract 
D)  the law of Switzerland 
E)  the law that the parties agree should apply

Question 10

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade,
2)	agent in the other country, 3) __________, 4) branch or subsidiary, 5)_______, and 6) multinational enterprise.

Accepted Answer

A) 	production facility; indigenous management 
B) 	representative office; foreign investment 
C) 	sales office; profit center 
D) 	franchising; foreign investment 
E) 	joint venture; regional office 
A) 	production facility; indigenous management 
B) 	representative office; foreign investment 
C) 	sales office; profit center 
D) 	franchising; foreign investment 
E) 	joint venture; regional office

Question 11

The WTO promotes the principle of "non- discrimination". What is the principle of non- discrimination? How does that principle affect "most- favoured nation treatment"? How does it affect quotas?

Accepted Answer

The principle of non- discrimination say

Question 12

Which fo the following has not promoted the interpretation and standardisation of international contractual terms?

Accepted Answer

A)  the harmonisation of national commercial laws 
B)  the adoption of standard terms known as "Incoterms" 
C)  the continually evolving ongoing process for obtaining international standards 
D)  the recent adoption of uniform trade laws such as GATT 
E)  the widespread adoption of standard form contracts 
A)  the harmonisation of national commercial laws 
B)  the adoption of standard terms known as "Incoterms" 
C)  the continually evolving ongoing process for obtaining international standards 
D)  the recent adoption of uniform trade laws such as GATT 
E)  the widespread adoption of standard form contracts

Question 13

Dumping is the process where

Accepted Answer

A)  many consumers are alienated toward the product because of the quality. 
B)  domestic producers of similar products cannot compete on price. 
C)  the government is required to impose countervailing duties. 
D)  a foreign government provides special benefits to its producer in order to assist them to export into Canada. 
E)  a foreign firm sells goods in Canada at prices lower than it sells these same goods in its own domestic market. 
A)  many consumers are alienated toward the product because of the quality. 
B)  domestic producers of similar products cannot compete on price. 
C)  the government is required to impose countervailing duties. 
D)  a foreign government provides special benefits to its producer in order to assist them to export into Canada. 
E)  a foreign firm sells goods in Canada at prices lower than it sells these same goods in its own domestic market.

Question 14

Anti- dumping duties may be levied when one country's goods are dumped in another country.

Accepted Answer

A) True 
 B)False

Question 15

SlamDunk Inc., a Vancouver, B.C. firm, agrees to sell to SuperVideo Ltd. of Barcelona, Spain, 500 video games with DDP terms. This means that SlamDunk will arrange for and pay the cost of shipping, the insurance, and the

Accepted Answer

A)  brokerage fee. 
B)  export license. 
C)  agent's commission. 
D)  import duties. 
E)  inspection fee. 
A)  brokerage fee. 
B)  export license. 
C)  agent's commission. 
D)  import duties. 
E)  inspection fee.

Question 16

Barrier Exports Ltd., a Manitoba corporation, wants to enter into a contract to export furniture. They received proposals from several foreign companies, all of which have different shipping terms. The terms used include: FOB, EXW, CIF, DDP, FCA, FAS. Define three of these terms and rank them from the one which would likely be most expensive for Barrier Exports Ltd. to the one which would be least expensive.

Accepted Answer

From most expensive to least expensive,

Question 17

Where it is determined that a country has dumped its goods in another country, the recipient country may impose countervailing duties.

Accepted Answer

A) True 
 B)False

Question 18

To an international seller of goods, the currency used to denominate the price should be currency and the currency to be paid in should be currency.

Accepted Answer

A)  a convenient; U.S. dollar 
B)  a hedge; ones own domestic 
C)  a stable; a hedge 
D)  a stable; a freely convertible 
E)  a standard "hard"; the same 
A)  a convenient; U.S. dollar 
B)  a hedge; ones own domestic 
C)  a stable; a hedge 
D)  a stable; a freely convertible 
E)  a standard "hard"; the same

Question 19

The invoice is of special importance in the international sale of goods. It provides information not only to the parties to the transaction but also

Accepted Answer

A)  for the international electronic data exchange. 
B)  to the customs authorities in the country of importation. 
C)  acknowledges that the goods have been picked up by the shipping company. 
D)  facilitates the financing. 
E)  operates as a document of title. 
A)  for the international electronic data exchange. 
B)  to the customs authorities in the country of importation. 
C)  acknowledges that the goods have been picked up by the shipping company. 
D)  facilitates the financing. 
E)  operates as a document of title.

Question 20

Non- tariff barriers for bringing commercial goods into Canada would include all EXCEPT

Accepted Answer

A)  the enforcing of custom payments. 
B)  the ordering of import quotas. 
C)  the requiring of import license. 
D)  the long waits to get through Customs at the border. 
E)  the labeling and packaging requirements. 
A)  the enforcing of custom payments. 
B)  the ordering of import quotas. 
C)  the requiring of import license. 
D)  the long waits to get through Customs at the border. 
E)  the labeling and packaging requirements.

Exam 33: International Business Transactions

Before a court assumes jurisdiction over an international business dispute, the issue must have a connecting factor.

Canada imposes import quotas on certain goods/products, including textiles.

What are "Incoterms"?

The abbreviation EXW in relation to international trade means the seller should deliver the goods to the buyer's home.

NAFTA currently allows anti- dumping and countervailing duties on imported goods between Canada and the U.S. However, in the long term, NAFTA is requiring both countries to

The practice whereby goods are sold for prices that are below that for which the goods are sold in the country of origin, is called most favoured nation treatment.

What is the proper law of an international contract?

The government is more restrictive on foreign ownership in some business sectors than in others. Which sector would have the LEAST restrictions?

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade, 2) agent in the other country, 3) __________, 4) branch or subsidiary, 5)_______, and 6) multinational enterprise.

The WTO promotes the principle of "non- discrimination". What is the principle of non- discrimination? How does that principle affect "most- favoured nation treatment"? How does it affect quotas?

Which fo the following has not promoted the interpretation and standardisation of international contractual terms?

Dumping is the process where

Anti- dumping duties may be levied when one country's goods are dumped in another country.

SlamDunk Inc., a Vancouver, B.C. firm, agrees to sell to SuperVideo Ltd. of Barcelona, Spain, 500 video games with DDP terms. This means that SlamDunk will arrange for and pay the cost of shipping, the insurance, and the

Where it is determined that a country has dumped its goods in another country, the recipient country may impose countervailing duties.

To an international seller of goods, the currency used to denominate the price should be currency and the currency to be paid in should be currency.

The invoice is of special importance in the international sale of goods. It provides information not only to the parties to the transaction but also

Non- tariff barriers for bringing commercial goods into Canada would include all EXCEPT

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

Electronic Commerce

Filters

According to the text, the stages in the evolution of a multinational enterprise are: 1) foreign trade, 2) agent in the other country, 3) ____, 4) branch or subsidiary, 5)_, and 6) multinational enterprise.