Question 1

Companies with concerns over the possibility of expropriation could lessen the harm or the likelihood of this occurring by:

Accepted Answer

A)  fully investigating a host government's stability. 
B)  establishing treaty commitments. 
C)  obtaining insurance. 
D)  all of the above. 
A)  fully investigating a host government's stability. 
B)  establishing treaty commitments. 
C)  obtaining insurance. 
D)  all of the above. D

Question 2

Which of the following does not describe the European Union (EU)?

Accepted Answer

A)  It was formerly known as the European Economic Community. 
B)  It had ten members sign on in 2004. 
C)  It eliminated internal barriers to the free movement of goods,persons,services,and capital between member countries. 
D)  It is administered solely by the heads of state of the member countries. 
A)  It was formerly known as the European Economic Community. 
B)  It had ten members sign on in 2004. 
C)  It eliminated internal barriers to the free movement of goods,persons,services,and capital between member countries. 
D)  It is administered solely by the heads of state of the member countries. D

Question 3

Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

Accepted Answer

A)  act-of-state 
B)  sovereign compliance 
C)  Timberlane 
D)  sovereign immunity 
A)  act-of-state 
B)  sovereign compliance 
C)  Timberlane 
D)  sovereign immunity D

Question 4

The jurisdictional rule of reason addresses the problems that arise when a foreign country has a significant interest in regulating conduct taking place within the United States.

Accepted Answer

A) True 
 B)False

Question 5

Three defenses are commonly raised to the extraterritorial application of U.S.antitrust laws.They are:

Accepted Answer

A)  act-of-state,sovereign compliance,and sovereign immunity doctrines. 
B)  jurisdictional rule of reason,effects doctrine,and comity. 
C)  foreign legislation,sovereign compliance,and comity. 
D)  foreign antitrust laws,sovereign immunity doctrine,and International Monetary Fund applications. 
A)  act-of-state,sovereign compliance,and sovereign immunity doctrines. 
B)  jurisdictional rule of reason,effects doctrine,and comity. 
C)  foreign legislation,sovereign compliance,and comity. 
D)  foreign antitrust laws,sovereign immunity doctrine,and International Monetary Fund applications.

Question 6

A societé anonyme is the European counterpart of a U.S.corporation.

Accepted Answer

A) True 
 B)False

Question 7

The General Agreement on Tariffs and Trade (GATT):

Accepted Answer

A)  is a multilateral treaty 
B)  is subscribed to by the United States 
C)  has as its goal the liberalization of world trade 
D)  all of the above 
A)  is a multilateral treaty 
B)  is subscribed to by the United States 
C)  has as its goal the liberalization of world trade 
D)  all of the above

Question 8

NAFTA seeks to eliminate tariffs among which countries?

Accepted Answer

A)  all members of the United Nations 
B)  United States,Canada,and Mexico 
C)  United States and Japan 
D)  members of the common market 
A)  all members of the United Nations 
B)  United States,Canada,and Mexico 
C)  United States and Japan 
D)  members of the common market

Question 9

One of the main goals of the Organization of Petroleum Exporting Countries (OPEC)was to reduce taxes from crude oil production.

Accepted Answer

A) True 
 B)False

Question 10

When a foreign government takes over an American business that is being conducted in the foreign country,this is called:

Accepted Answer

A)  expropriation. 
B)  dollar credits. 
C)  suspension agreement. 
D)  antidumping. 
A)  expropriation. 
B)  dollar credits. 
C)  suspension agreement. 
D)  antidumping.

Question 11

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

Accepted Answer

A)  foreign distributorship. 
B)  agency arrangement. 
C)  licensed sale. 
D)  export sale. 
A)  foreign distributorship. 
B)  agency arrangement. 
C)  licensed sale. 
D)  export sale.

Question 12

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:

Accepted Answer

A)  exporting. 
B)  licensing. 
C)  agency representation. 
D)  subsidiary sales. 
A)  exporting. 
B)  licensing. 
C)  agency representation. 
D)  subsidiary sales.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

You plan to enter the export market with a new product that you have just developed.You feel that the product has great promise,but you are confused over whether you are required to obtain an export license.Further,your brother-in-law says that he knows someone in the Japanese government who could greatly assist you in your endeavors for a very modest fee.Discuss this situation.

Accepted Answer

International trade is well-regulated in

Question 15

Since 1947 and the end of the World War II era,the goal of the General Agreement on Tariffs and Trade (GATT)has been to restrict world trade.

Accepted Answer

A) True 
 B)False

Question 16

The term dumping refers to the sale of damaged goods in a foreign market to cut the losses that would otherwise be caused by the damage.

Accepted Answer

A) True 
 B)False

Question 17

A country can borrow money from other International Monetary Fund (IMF)members or from the IMF by means of special drawing rights (SDRs)sufficient to permit that country to maintain the stability of its currency's relationship to other world currencies.

Accepted Answer

A) True 
 B)False

Question 18

The United Nations Conference on Trade and Development (UNCTAD):

Accepted Answer

A)  represents the interests of less developed countries. 
B)  arbitrates trade disputes between countries. 
C)  furnishes letters of credit to expedite trade. 
D)  all of the above. 
A)  represents the interests of less developed countries. 
B)  arbitrates trade disputes between countries. 
C)  furnishes letters of credit to expedite trade. 
D)  all of the above.

Question 19

Which of the following allows a domestic firm to maintain the greatest control over its foreign operations?

Accepted Answer

A)  wholly-owned subsidiaries 
B)  licensing 
C)  foreign distributorships 
D)  agency arrangements 
A)  wholly-owned subsidiaries 
B)  licensing 
C)  foreign distributorships 
D)  agency arrangements

Question 20

Franchising is a form of licensing that now is very common in international business.

Accepted Answer

A) True 
 B)False

Exam 7: The Legal Environment of International Trade

Companies with concerns over the possibility of expropriation could lessen the harm or the likelihood of this occurring by:

Which of the following does not describe the European Union (EU)?

Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

The jurisdictional rule of reason addresses the problems that arise when a foreign country has a significant interest in regulating conduct taking place within the United States.

Three defenses are commonly raised to the extraterritorial application of U.S.antitrust laws.They are:

A societé anonyme is the European counterpart of a U.S.corporation.

The General Agreement on Tariffs and Trade (GATT):

NAFTA seeks to eliminate tariffs among which countries?

One of the main goals of the Organization of Petroleum Exporting Countries (OPEC)was to reduce taxes from crude oil production.

When a foreign government takes over an American business that is being conducted in the foreign country,this is called:

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

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:

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

Since 1947 and the end of the World War II era,the goal of the General Agreement on Tariffs and Trade (GATT)has been to restrict world trade.

The term dumping refers to the sale of damaged goods in a foreign market to cut the losses that would otherwise be caused by the damage.

A country can borrow money from other International Monetary Fund (IMF)members or from the IMF by means of special drawing rights (SDRs)sufficient to permit that country to maintain the stability of its currency's relationship to other world currencies.

The United Nations Conference on Trade and Development (UNCTAD):

Which of the following allows a domestic firm to maintain the greatest control over its foreign operations?

Franchising is a form of licensing that now is very common in international business.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters