Question 1

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are​

Accepted Answer

A)  encouraged by credit guaranties to lend such funds.
B)  discouraged by administrative rules to make such loans.
C)  asked by enforcement agencies to report such requests.
D)  banned by statute from opening such credit lines. A

Question 2

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is​

Accepted Answer

A)  a franchise.
B)  piracy.
C)  a joint venture.
D)  direct exporting. A

Question 3

Expropriation occurs when a government seizes private property for a proper purpose and awards just compensation.

Accepted Answer

A) True 
 B)False  True

Question 4

Franchising is a form of licensing.

Accepted Answer

A) True 
 B)False

Question 5

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. anti-trust laws. These laws apply​

Accepted Answer

A)  extraterritorially.
B)  only to signatories of the North American Free Trade Agreement.
C)  only to members of the World Trade Organization.
D)  only within U.S.borders.

Question 6

The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico.

Accepted Answer

A) True 
 B)False

Question 7

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is​

Accepted Answer

A)  a joint venture.
B)  franchising.
C)  indirect exporting.
D)  licensing.

Question 8

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is​

Accepted Answer

A)  confiscation.
B)  defalcation.
C)  dumping.
D)  expropriation.

Question 9

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is​

Accepted Answer

A)  a distribution agreement.
B)  a joint venture.
C)  direct exporting.
D)  licensing.

Question 10

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is​

Accepted Answer

A)  confiscation.
B)  defalcation.
C)  dumping.
D)  expropriation.

Question 11

​Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

Accepted Answer

A)  confiscation.
B)  defalcation.
C)  dumping.
D)  expropriation.

Question 12

Few countries guarantee compensation to foreign investors if their property is taken.

Accepted Answer

A) True 
 B)False

Question 13

Dumping is the sale of imported goods at "less than fair value."​

Accepted Answer

A) True 
 B)False

Question 14

Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation.

Accepted Answer

A) True 
 B)False

Question 15

When a U.S. firm wishes to increase its involvement in an international market, it may do so by establishing an agency relationship with a foreign firm.

Accepted Answer

A) True 
 B)False

Question 16

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

Accepted Answer

A) True 
 B)False

Question 17

To obtain a contract with the Chinese government, Road & Bridge Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate​

Accepted Answer

A)  the act of state doctrine.
B)  the doctrine of sovereign immunity.
C)  the Foreign Corrupt Practices Act.
D)  the principle of comity.

Question 18

The United States taxes each barrel of imported oil at a flat rate. This is​

Accepted Answer

A)  an antidumping duty.
B)  a dumping duty.
C)  a quota.
D)  a tariff.

Question 19

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is​

Accepted Answer

A)  not immune from the jurisdiction of U.S.courts.
B)  immune from the jurisdiction of U.S.courts.
C)  not subject to a suit by any private foreign firm.
D)  subject to a suit by a private firm only in Venezuela.

Question 20

The management of Sport Shoes Corporation, a U.S. firm, wants to expand into foreign investment and employment markets. They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm. What are the advantages and disadvantages of each of these courses of action?​

Accepted Answer

The answer of The management of Sport Shoes Corporation, a...

Exam 25: International Law in a Global Economy

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are​

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is​

Expropriation occurs when a government seizes private property for a proper purpose and awards just compensation.

Franchising is a form of licensing.

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. anti-trust laws. These laws apply​

The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States, Canada, and Mexico.

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is​

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is​

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is​

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is​

​Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

Few countries guarantee compensation to foreign investors if their property is taken.

Dumping is the sale of imported goods at "less than fair value."​

Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation.

When a U.S. firm wishes to increase its involvement in an international market, it may do so by establishing an agency relationship with a foreign firm.

A treaty is a contract or other agreement between two or more nations that must be ratified by the United Nations to take effect.

To obtain a contract with the Chinese government, Road & Bridge Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate​

The United States taxes each barrel of imported oil at a flat rate. This is​

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is​

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is

Bango! Business, Inc., a U.S. firm, may have committed, in Chile, acts that would constitute, in the United States, violations of U.S. anti-trust laws. These laws apply

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

Dumping is the sale of imported goods at "less than fair value."

To obtain a contract with the Chinese government, Road & Bridge Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

The United States taxes each barrel of imported oil at a flat rate. This is

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is