Exam 46: International Business Law

Which of the following is true with regard to securities regulation in foreign markets?

The __________ established the MIGA to encourage increased investment in developing nations.

A clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable occurrence, such as a typhoon, tornado, or other disaster is a(n):

The various forms of MNE include:

A foreign company, partially owned by that foreign government, manufactures televisions in the foreign country. The cost to the company for the manufacture of the product is the equivalent of $60 in the U.S. Because of excess production, the firm exports 50,000 sets to the United States where they are sold for $75 each. If the nearest rival U.S.-made set sells for $85, the action of the foreign company:

Which of the following is correct with respect to the act of state doctrine?

An "anti-dumping" statute:

A letter of credit is a promise by a buyer's bank to pay the seller, provided certain conditions are met.

The European Community was formed through a merger between the Common Market, the European Coal and Steel Community, and the European Atomic Energy Community.

What form of organization enables a multinational enterprise to retain control and authority over all phases of operation?

The United States and a Latin American country signed a treaty whereby the United States agreed to assist the Latin American country in controlling drug traffic. The United States, following the treaty, seized 100 square meters of land and bulldozed it, because it was a suspected haven of drug smuggling. The land in question was in Latin America, but belonged to an American citizen. Which of the following is correct?

The seller contracts directly with the buyer in the other country under a:

The basic purpose of __________ is to facilitate the flow of trade by establishing agreements concerning potential trade barriers such as import quotas, customs, export regulations, subsidies, and import fees.

The Foreign Corrupt Practices Act makes it illegal for an American company to offer or pay money to a foreign official to influence a decision of that official even if the offer is not accepted.

The U.S. and the government of San Sebastian broke off diplomatic relations in a dispute over fishing rights. The U.S. blocked exports to San Sebastian. San Sebastian in turn seized and expropriated the assets of several U.S. companies located within the country. One of the companies, Continental Coffee, sued the U.S. government and the government of San Sebastian charging violation of the U.S. Constitution on the grounds of deprivation of property without due process of law. How will the company fare in its case against the U.S.? against San Sebastian? Explain your answer, providing reasons for your decision.

The European Community was the predecessor to the:

Expropriation of property by a foreign government for a public purpose with the payment of just compensation, but without the consent of the owner, violates generally observed principles of international law.

Which of the following is true about the European Union (EU)?

Like domestic law, international law can be easily enforced, because international courts have compulsory jurisdiction.

The legal issues inherent in domestic commercial contracts also arise in international contracts.