Question 1

Which of the following is NOT a nontariff barrier?

Accepted Answer

A)  government subsidies 
B)  import quotas 
C)  complex custom procedures 
D)  an import or export duty or tax placed on goods as they move in or out of a country 
A)  government subsidies 
B)  import quotas 
C)  complex custom procedures 
D)  an import or export duty or tax placed on goods as they move in or out of a country

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The Overseas Private Investment Corporation (OPIC)offers asset protection insurance against risk of loss to plant and equipment,as well as loss of deposits in overseas bank accounts,to companies that qualify on the basis of the involvement of a "substantial U.S.interest."

Accepted Answer

A) True 
 B)False

Question 4

Law is the result of the desire of the lawmaker to achieve certain goals.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The SEC has accused the Acme Company of fraud in connection with the sale of its securities to American citizens.Although the firm is American-owned,it is located in Switzerland.All of the accounts and business records of the firm are in several Swiss banks.The SEC has been actively pursuing the case,although it has not been able to provide a great deal of hope for those victimized by the fraud.What factors are probably hindering the SEC,and how might this be handled?

Accepted Answer

Secrecy laws (which prohibit the disclos

Question 7

The Ex-IM Bank:

Accepted Answer

A)  helps U.S.manufacturers export goods by provides loan guarantees. 
B)  receives funding from the U.S.Treasury to help sustain its operations. 
C)  has a financing cap of $100 billion. 
D)  all of the above. 
A)  helps U.S.manufacturers export goods by provides loan guarantees. 
B)  receives funding from the U.S.Treasury to help sustain its operations. 
C)  has a financing cap of $100 billion. 
D)  all of the above.

Question 8

The World Trade Organization (WTO)provides a Dispute Settlement Body (DSB)to enable member countries to resolve trade disputes rather than engage in unilateral trade sanctions or a trade war.

Accepted Answer

A) True 
 B)False

Question 9

Parties to international ventures often agree to arbitrate their disputes in neutral countries.

Accepted Answer

A) True 
 B)False

Question 10

U.S.courts will assume jurisdiction and apply antitrust laws to conduct business outside the United States if the activities of the business firms outside the United States have a direct,substantial,and foreseeable impact on U.S.commerce.This is based on what principal?

Accepted Answer

A)  the "jurisdictional rule of reason" 
B)  the "act-of-state doctrine 
C)  the "effects" doctrine 
D)  comity 
A)  the "jurisdictional rule of reason" 
B)  the "act-of-state doctrine 
C)  the "effects" doctrine 
D)  comity

Question 11

The Export-Import Bank (EX-IM Bank)is an international agency.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A common barrier to the free movement of goods across borders is the tariff barrier.

Accepted Answer

A) True 
 B)False

Question 14

One reason the U.S.controls the export of goods and technology is:

Accepted Answer

A)  for national security reason. 
B)  foreign policy. 
C)  short supply of domestic goods. 
D)  All of the above are reasons the U.S.controls the export of goods and techonolgy. 
A)  for national security reason. 
B)  foreign policy. 
C)  short supply of domestic goods. 
D)  All of the above are reasons the U.S.controls the export of goods and techonolgy.

Question 15

The main purpose of the International Monetary Fund (IMF)is to:

Accepted Answer

A)  provide easy access to money for multinational corporations. 
B)  facilitate the expansion and balanced growth of international trade. 
C)  create a model simplified lending system. 
D)  facilitate currency exchanges. 
A)  provide easy access to money for multinational corporations. 
B)  facilitate the expansion and balanced growth of international trade. 
C)  create a model simplified lending system. 
D)  facilitate currency exchanges.

Question 16

The interests of the less-developed nations of the world are represented by the United Nations Conference on Trade and Development (UNCTAD).

Accepted Answer

A) True 
 B)False

Question 17

When an international sale is made,the parties often set forth in their contract which country's law will govern a dispute.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

Unfortunately,these payments w

Question 19

The provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG)have been strongly influenced by:

Accepted Answer

A)  the GATT's most-favored nation clause. 
B)  the European Economic Community's Treaty of Rome. 
C)  the Uniform Commercial Code. 
D)  the success of the Organization of Petroleum Exporting Companies. 
A)  the GATT's most-favored nation clause. 
B)  the European Economic Community's Treaty of Rome. 
C)  the Uniform Commercial Code. 
D)  the success of the Organization of Petroleum Exporting Companies.

Question 20

The goal of the North American Free Trade Agreement (NAFTA)is to eliminate all tariffs between the United States and Europe.

Accepted Answer

A) True 
 B)False

Exam 7: The Legal Environment of International Trade

Which of the following is NOT a nontariff barrier?

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

The Overseas Private Investment Corporation (OPIC)offers asset protection insurance against risk of loss to plant and equipment,as well as loss of deposits in overseas bank accounts,to companies that qualify on the basis of the involvement of a "substantial U.S.interest."

Law is the result of the desire of the lawmaker to achieve certain goals.

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

The Ex-IM Bank:

The World Trade Organization (WTO)provides a Dispute Settlement Body (DSB)to enable member countries to resolve trade disputes rather than engage in unilateral trade sanctions or a trade war.

Parties to international ventures often agree to arbitrate their disputes in neutral countries.

U.S.courts will assume jurisdiction and apply antitrust laws to conduct business outside the United States if the activities of the business firms outside the United States have a direct,substantial,and foreseeable impact on U.S.commerce.This is based on what principal?

The Export-Import Bank (EX-IM Bank)is an international agency.

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

A common barrier to the free movement of goods across borders is the tariff barrier.

One reason the U.S.controls the export of goods and technology is:

The main purpose of the International Monetary Fund (IMF)is to:

The interests of the less-developed nations of the world are represented by the United Nations Conference on Trade and Development (UNCTAD).

When an international sale is made,the parties often set forth in their contract which country's law will govern a dispute.

The provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG)have been strongly influenced by:

The goal of the North American Free Trade Agreement (NAFTA)is to eliminate all tariffs between the United States and Europe.

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