Question 1

Foreign Direct Investment to a Canadian investor

Accepted Answer

A)  would involve owning the stock in a Canadian holding company. 
B)  is seldom obtained through the establishment of a foreign branch or subsidiary. 
C)  is where the investor's purpose is to have an effective voice in the management of the enterprise. 
D)  is where one owns stock listed on a foreign stock exchange. 
E)  can be obtained by owning shares in a mutual fund devoting itself to foreign investments. 
A)  would involve owning the stock in a Canadian holding company. 
B)  is seldom obtained through the establishment of a foreign branch or subsidiary. 
C)  is where the investor's purpose is to have an effective voice in the management of the enterprise. 
D)  is where one owns stock listed on a foreign stock exchange. 
E)  can be obtained by owning shares in a mutual fund devoting itself to foreign investments.

Question 2

Explain what a Canadian court would do to determine whether to permit the enforcement of a judgment obtained in a foreign country.

Accepted Answer

The Canadian court would determine if th

Question 3

What significant extension of GATT took place at the conclusion of the Uruguay round in 1993? What new organisation took over in 1995 and what is its basic objective?

Accepted Answer

The Uruguay round expanded coverage of g

Question 4

What test does Investment Canada apply in order to authorise a foreign acquisition of a large Canadian business?

Accepted Answer

To be authorised, th

Question 5

The World Trade Organisation provides two procedures for the resolution of disputes between countries. One way is to request the WTO Council to appoint a "Panel" to adjudicate the dispute; the other way is

Accepted Answer

A)  to refer the dispute to the Free Trade Commission for settlement. 
B)  to submit to the International Compensation Board who will review the matter and publish a report with their recommendations. 
C)  by arbitration through an international arbitration panel. 
D)  to turn over the matter to the International Mediation Review Board. 
E)  a consultation and, if necessary, conciliation procedure- essentially a diplomatic solution. 
A)  to refer the dispute to the Free Trade Commission for settlement. 
B)  to submit to the International Compensation Board who will review the matter and publish a report with their recommendations. 
C)  by arbitration through an international arbitration panel. 
D)  to turn over the matter to the International Mediation Review Board. 
E)  a consultation and, if necessary, conciliation procedure- essentially a diplomatic solution.

Question 6

Export Industries Ltd., a Canadian Corporation with a factory in London, Ontario, agrees to sell a customer in Germany 2,000 microwave ovens FOB Lufnaia Airlines, Toronto, Pearson Airport. Which of the following statements is CORRECT?

Accepted Answer

A)  Export is liable until the goods leave Toronto on the airline. 
B)  The customer's insurance covers the goods from the time they are separated out and loaded at the London, Ontario factory. 
C)  Title passes when the goods leave the London factory. 
D)  Export is only liable if their employees damage the goods prior to their arriving in Toronto. 
E)  Export is liable for the goods until they are loaded into Lufnaia Airlines. 
A)  Export is liable until the goods leave Toronto on the airline. 
B)  The customer's insurance covers the goods from the time they are separated out and loaded at the London, Ontario factory. 
C)  Title passes when the goods leave the London factory. 
D)  Export is only liable if their employees damage the goods prior to their arriving in Toronto. 
E)  Export is liable for the goods until they are loaded into Lufnaia Airlines.

Question 7

Which of the following documents is NOT usually required for an export sale?

Accepted Answer

A)  invoice 
B)  insurance certificate 
C)  customs declaration 
D)  contract of sale 
E)  bill of lading 
A)  invoice 
B)  insurance certificate 
C)  customs declaration 
D)  contract of sale 
E)  bill of lading

Question 8

Define and explain the term counter- trade.

Accepted Answer

Counter- trade is a form of barter. The

Question 9

Among the world's trading nations, Canada ranks eighth in exports of merchandise and twelfth in exports of services. Regarding these exports,

Accepted Answer

A)  they are dwarfed by the size of Canadian imports. 
B)  half go to the United States. 
C)  one- third go to the United States. 
D)  they are mostly raw materials and minerals. 
E)  the U.S., the worlds largest exporter, only exports three times as much as Canada. 
A)  they are dwarfed by the size of Canadian imports. 
B)  half go to the United States. 
C)  one- third go to the United States. 
D)  they are mostly raw materials and minerals. 
E)  the U.S., the worlds largest exporter, only exports three times as much as Canada.

Question 10

Why is it sometimes important to determine the country of origin of a good imported into Canada?

Accepted Answer

To determine if the goods are subject to

Question 11

When would a government typically impose measures to deal with dumping or export subsidisation? What measures might this government take?

Accepted Answer

This government should determine the nat

Question 12

The proper "law of the contract" is the law of the country where the

Accepted Answer

A)  contract is to be performed. 
B)  acceptance of the risk takes place. 
C)  defendant's business is located. 
D)  parties to the contract intended. 
E)  contract was made. 
A)  contract is to be performed. 
B)  acceptance of the risk takes place. 
C)  defendant's business is located. 
D)  parties to the contract intended. 
E)  contract was made.

Question 13

The GATT and the WTO aim to reduce customs duties.

Accepted Answer

A) True 
 B)False

Question 14

International transactions result in a wide variety of legal relationships. Name some of the contractual relationships.

Accepted Answer

Contracts for the international sale of

Question 15

International business transactions require, by definition, parties in

Accepted Answer

A)  both private law and public law. 
B)  two or more different countries. 
C)  questions of public international law. 
D)  agreeing to bilateral treaties and trade agreements. 
E)  the NAFTA or the GATT treaties. 
A)  both private law and public law. 
B)  two or more different countries. 
C)  questions of public international law. 
D)  agreeing to bilateral treaties and trade agreements. 
E)  the NAFTA or the GATT treaties.

Question 16

Unlike domestic contracts, international contracts are more likely to involve special problems such as

Accepted Answer

A)  the usual buyer/seller language barrier. 
B)  the use of carriers, insurers, and banks. 
C)  the interference of foreign governments and their agents. 
D)  those created by export houses and freight forwarders. 
E)  complexities involving transportation, insurance, and financing. 
A)  the usual buyer/seller language barrier. 
B)  the use of carriers, insurers, and banks. 
C)  the interference of foreign governments and their agents. 
D)  those created by export houses and freight forwarders. 
E)  complexities involving transportation, insurance, and financing.

Question 17

Courts do not encourage forum shopping.

Accepted Answer

A) True 
 B)False

Question 18

What information would you expect to see on the invoice used in export transaction?

Accepted Answer

The invoice states the names and address

Question 19

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 20

In international disputes, what factors would the court consider in determining the intention of the parties regarding the proper law for the contract?

Accepted Answer

Assuming the parties didn't expressly st

Exam 33: International Business Transactions

Foreign Direct Investment to a Canadian investor

Explain what a Canadian court would do to determine whether to permit the enforcement of a judgment obtained in a foreign country.

What significant extension of GATT took place at the conclusion of the Uruguay round in 1993? What new organisation took over in 1995 and what is its basic objective?

What test does Investment Canada apply in order to authorise a foreign acquisition of a large Canadian business?

The World Trade Organisation provides two procedures for the resolution of disputes between countries. One way is to request the WTO Council to appoint a "Panel" to adjudicate the dispute; the other way is

Export Industries Ltd., a Canadian Corporation with a factory in London, Ontario, agrees to sell a customer in Germany 2,000 microwave ovens FOB Lufnaia Airlines, Toronto, Pearson Airport. Which of the following statements is CORRECT?

Which of the following documents is NOT usually required for an export sale?

Define and explain the term counter- trade.

Among the world's trading nations, Canada ranks eighth in exports of merchandise and twelfth in exports of services. Regarding these exports,

Why is it sometimes important to determine the country of origin of a good imported into Canada?

When would a government typically impose measures to deal with dumping or export subsidisation? What measures might this government take?

The proper "law of the contract" is the law of the country where the

The GATT and the WTO aim to reduce customs duties.

International transactions result in a wide variety of legal relationships. Name some of the contractual relationships.

International business transactions require, by definition, parties in

Unlike domestic contracts, international contracts are more likely to involve special problems such as

Courts do not encourage forum shopping.

What information would you expect to see on the invoice used in export transaction?

agent in the other country, 3) _ , 4) branch or subsidiary, 5) , and 6) multinational enterprise.

In international disputes, what factors would the court consider in determining the intention of the parties regarding the proper law for the contract?

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

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