Question 1

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

Accepted Answer

A)  sets prices, controls output, or takes other actions to maximize profits.
B)  dictates how other countries should use their products.
C)  produces more products in order to beat the competition.
D)  conducts activities that are considered illegal in the United States.
E)  works on forming a union against management of other companies. A

Question 2

Which of the following would constitute a copyright violation?

Accepted Answer

A)  manufacturing and selling illegal videocassette copies of "Spiderman 2"
B)  manufacturing and selling illegal copies of Levi "501" jeans
C)  printing and selling illegal copies of Harry Potter books
D)  A, B, and C are copyright violations.
E)  A and B are copyright violations. D

Question 3

Companies such as Caterpillar have been unable to protect critical innovations in Japan because:.

Accepted Answer

A)  products very similar to those made by U.S. companies can be patented without fear of infringement.
B)  the Japanese government enforces strict control over infringement rights for security reasons.
C)  inventions that are based on software can be easily downloaded.
D)  U.S. patent laws now harmonize with those in the EU as well as Japan.
E)  patents in Japan are broader than those in the United States. A

Question 4

Antitrust laws in the United States and other countries are designed to combat restrictive business practices and to discourage competition.

Accepted Answer

A) True 
 B)False

Question 5

Affluent Russians can now shop at Versace, Burberry, Bulgari, and other exclusive brands.

Accepted Answer

A) True 
 B)False

Question 6

The high level of political risk currently evident in Russia can be attributed in part to:

Accepted Answer

A)  changing of name of the country.
B)  changing the national flag.
C)  excessive loans from the International Monetary Fund (IMF) .
D)  participation in the WTO (World Trade Organization) .
E)  excessively high taxes on business operations.

Question 7

In Great Britain, the Wine and Spirit Association estimates that, on average, cars returning from France are loaded with 80 bottles of wine. This is most likely due to

Accepted Answer

A)  trademarks and copyrights violation.
B)  cross-border smuggling.
C)  bribes accepted by officers.
D)  antitrust scrutiny.
E)  high excise and VAT taxes.

Question 8

The unauthorized publication or reproduction of copyrighted work is referred to as:

Accepted Answer

A)  associative counterfeit.
B)  imitation.
C)  mistake.
D)  trade secrets.
E)  piracy.

Question 9

Various types of political risk insurance to U.S. companies is provided by:

Accepted Answer

A)  BERI (Business Environment Risk Intelligence) .
B)  PRS Group.
C)  EIU (Economist Intelligence Unit) .
D)  WTO (World Trade Organization) .
E)  OPIC (Overseas Private Investment Corporation) .

Question 10

Research in Motion (RIM), a Canadian company which markets BlackBerry Messenger, is very popular with politicians and business people because it offers advance encryption that provides data security. This can be a disadvantage for some countries because:

Accepted Answer

A)  it is too complex to understand.
B)  governments use strict control for security reasons.
C)  the software can be easily downloaded.
D)  the accessibility is very poor.
E)  there is competition from local manufacturers.

Question 11

When a company invents a product or service, it should have a right to defend its creativity with intellectual patents. However, there are some countries like Italy and China where piracy and copyright violations are common. How can a corporation prevent this by having some built-in measures in products and services?

Accepted Answer

The answer of When a company invents a product or...

Question 12

A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following?

Accepted Answer

A)  European Commission
B)  UN Conference on International Trade Law
C)  International Chamber of Commerce
D)  International Court of Justice
E)  none of the above

Question 13

The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except:

Accepted Answer

A)  it can block a proposed merger.
B)  it can block a proposed joint venture.
C)  it can approve with minor modifications.
D)  it can demand substantial concessions before granting approval.
E)  it can refer serious matters to the UN Security Council.

Question 14

Denmark ranks highest in bribery as listed by the Corruption Perceptions Index (CPI)by Transparency International in 2014.

Accepted Answer

A) True 
 B)False

Question 15

A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.

Accepted Answer

A) True 
 B)False

Question 16

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct?

Accepted Answer

A)  Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.
B)  Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries.
C)  West Africa, the Ivory Coast and Senegal are the only common-law countries.
D)  All the West African nations mentioned are likely to be civil-code countries.
E)  All the West African nations mentioned are likely to be common-law countries.

Question 17

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act)antibribery provisions except:

Accepted Answer

A)  corporations are subject to a fine of up to $2,000,000.
B)  officers, directors, stockholders, employees, and agents are subject to a fine of up to $100,000.
C)  fines imposed on individuals can be paid by their employer or principal.
D)  the fines may be much higher, up to twice the benefit sought by the defendant.
E)  in addition to fines, there may be imprisonment for up to five years.

Question 18

Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France. One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier. Which of the following does not represent an action taken by different legal bodies?

Accepted Answer

A)  Consten's complaint was upheld by two French courts.
B)  The Paris Court of Appeals suspended the judgment of the French courts.
C)  The Paris Court of Appeal's judgment was based on pending a ruling by the European Commission.
D)  The European Commission ruled against Consten on the grounds that territorial protection proved to be damaging to the Common Market.
E)  The European Commission ruled that German Grundig was in violation of the laws of the Common Market.

Question 19

If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the businessperson has violated the Foreign Corrupt Practices Act (FCPA).

Accepted Answer

A) True 
 B)False

Question 20

The high level of political risk currently evident in Russia can be attributed in part to excessively low taxes on business operations.

Accepted Answer

A) True 
 B)False

Exam 5: The Political, Legal, and Regulatory Environments

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

Which of the following would constitute a copyright violation?

Companies such as Caterpillar have been unable to protect critical innovations in Japan because:.

Antitrust laws in the United States and other countries are designed to combat restrictive business practices and to discourage competition.

Affluent Russians can now shop at Versace, Burberry, Bulgari, and other exclusive brands.

The high level of political risk currently evident in Russia can be attributed in part to:

In Great Britain, the Wine and Spirit Association estimates that, on average, cars returning from France are loaded with 80 bottles of wine. This is most likely due to

The unauthorized publication or reproduction of copyrighted work is referred to as:

Various types of political risk insurance to U.S. companies is provided by:

Research in Motion (RIM) , a Canadian company which markets BlackBerry Messenger, is very popular with politicians and business people because it offers advance encryption that provides data security. This can be a disadvantage for some countries because:

A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following?

The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except:

Denmark ranks highest in bribery as listed by the Corruption Perceptions Index (CPI)by Transparency International in 2014.

A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct?

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act) antibribery provisions except:

If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the businessperson has violated the Foreign Corrupt Practices Act (FCPA).

The high level of political risk currently evident in Russia can be attributed in part to excessively low taxes on business operations.