Exam 10: The Legal Environment of International Trade

In order to strengthen the ________, in 1982 Congress passed the ________ to provide clarity on the extraterritorial reach of antitrust actions against foreign companies that have a "direct, substantial, and reasonably foreseeable effect" on U.S. commerce.

A letter of credit agrees to provide the seller with needed currency exchanges when transactions with foreign buyers occur.

The purpose of most-favored-nation treatment is to prohibit one country's discrimination between its own products and foreign products or services.

TRIPS extends the Paris Convention to special protection for "well-known marks".

All of the following are reasons the U.S. controls the export of goods and technology, except:

The transfer of technology rights in a product to allow another firm in a foreign country to produce a product in return for royalties or other specified payments is called:

The Alexo Corporation has been charged in a United States court with violation of American antitrust laws in its foreign dealings. The firm has raised the defense that its actions were compelled by the government of its host country. Alexo based its defense on the__________ doctrine.

_________, very common in international business, is the granting of permission to use a trademark, trade name, or copyright under specified conditions.

The United Nations Conventions on Contracts for the International Sale of Goods (CISG) sets forth uniform rules to govern international sales contracts.

The "Turtle Law" prohibits the importation of shrimp from countries that allow the harvesting of shrimp that could adversely affect endangered sea turtles.

Blocking laws prohibit the disclosure, copying, inspection, or removal of documents located in the enacting country in compliance with orders from foreign authorities.

TRIPS is the WTO agreement that deals with trade rules that impact tariffs and embargoes.

NAFTA seeks to eliminate tariffs among which countries?

The _______ is administered by ___________ to protect trademarks in the international community.

"Know-how" secrets and processes are considered intellectual property rights, which are legally protectable.

Oswaldo Enterprises began to do business in a small East African nation. The representatives of Oswaldo bid on government contracts. Although Oswaldo was by far the lowest bidder and offered a superior product, the company was not awarded a contract. Oswaldo officials learned after inquiring that the company would have to give substantial sums of money to high-level government officials in order to receive a contract. Oswaldo officials are considering this as a necessary cost of doing business, but they are concerned about violating U.S. law. Discuss the implications of this under the Foreign Corrupt Practices Act.

A direct sale to customers in a foreign country is a(n):

A direct sale by an American firm to a customer abroad, with terms of payment commonly based on an irrevocable letter of credit, is an import sale.

The use of agency arrangements allows a U.S. firm to avoid taxation on sales made in its agent's country.

The "effects doctrine" requires U.S. courts to assume jurisdiction over cases when domestic commercial activities have a direct and foreseeable effect on international commerce