Question 1

Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean firm, to give Comercio the right to use Big Deal!'s animation techniques and characters in product promotions. This is

Accepted Answer

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

Question 2

Expropriation occurs when a government seizes a privately owned business or privately owned goods for a proper public purpose and awards just compensation.

Accepted Answer

A) True 
 B)False

Question 3

An international custom can be defined as "evidence of a general practice accepted as law."

Accepted Answer

A) True 
 B)False

Question 4

The importation of goods that infringe U.S. patents is not prohibited.

Accepted Answer

A) True 
 B)False

Question 5

Generally, U.S. employers abroad must abide by U.S. discrimination laws unless to do so would violate the laws of the country where their workplaces are located.

Accepted Answer

A) True 
 B)False

Question 6

International law requires nations to honor the actions of other nations.

Accepted Answer

A) True 
 B)False

Question 7

The International Court of Justice normally has authority to settle legal disputes only when nations voluntarily submit to its jurisdiction.

Accepted Answer

A) True 
 B)False

Question 8

The major difference between international law and national law is that government authorities can enforce national law.

Accepted Answer

A) True 
 B)False

Question 9

Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel agency. Tourist fires Miranda for reasons that she believes vio?late U.S. antidis?crimination laws. Those 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 10

UniVision Corporation, a U.S. company, sets up a firm in Vietnam. UniVision remains in the United States and retains ownership of the Vietnamese branch, as well as authority and control over all phases of the operation. This is

Accepted Answer

A)  a franchise. 
B)  a wholly owned subsidiary. 
C)  a joint venture. 
D)  direct exporting.

Question 11

The management of Sweet Soft Drinks Corporation, a U.S. firm, wants to expand into foreign investment and employment markets. They are considering ei?ther opening their own production facility in a foreign country or enter?ing into a licensing agreement with a foreign firm. What are the advan?tages and disadvantages of each of these courses of action?

Accepted Answer

The answer of The management of Sweet Soft Drinks Corporation,...

Question 12

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in

Accepted Answer

A)  the European market. 
B)  France. 
C)  the United States. 
D)  the world market.

Question 13

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 14

Stardust Coffee Company a U.S. business firm, makes and sells distinc?tively flavored coffee beverages. Although the recipes are secret, the ingre?di?ents could be revealed and the sauces could be reconstructed with dili?gent efforts. What can Stardust do to prevent its products from being "decoded" and pirated abroad?

Accepted Answer

The answer of Stardust Coffee Company a U.S. business firm,...

Question 15

The United States and other members of a certain organization agree to grant normal trade relations (NTR) status to each other with regard to im?ports and exports. This organi?zation is

Accepted Answer

A)  the Convention on Contracts for the International Sale of Goods. 
B)  the International Export-Import Bank. 
C)  the United Nations. 
D)  the World Trade Organization.

Question 16

The principle of comity basically refers to legal reciprocity.

Accepted Answer

A) True 
 B)False

Question 17

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment

Accepted Answer

A)  if it is consistent with U.S. laws and public policy. 
B)  if it is consistent with Portuguese laws and public policy. 
C)  if it does not benefit the U.S. to deny it. 
D)  under no circumstances.

Question 18

Fresh Meds, Inc., a U.S. firm, contracts with Gong, Ltd., a Hong Kong firm, al?lowing Gong to use and profit from Fresh Meds' patented products. This is

Accepted Answer

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

Question 19

Franchising is a form of licensing.

Accepted Answer

A) True 
 B)False

Question 20

Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the government of Ecuador seizes the property, Dynamic Oil asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is

Accepted Answer

A)  a travesty of justice. 
B)  the act of state doctrine. 
C)  the doctrine of sovereign immunity. 
D)  the principle of comity.

Exam 24: International Law in a Global Economy

Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean firm, to give Comercio the right to use Big Deal!'s animation techniques and characters in product promotions. This is

Expropriation occurs when a government seizes a privately owned business or privately owned goods for a proper public purpose and awards just compensation.

An international custom can be defined as "evidence of a general practice accepted as law."

The importation of goods that infringe U.S. patents is not prohibited.

Generally, U.S. employers abroad must abide by U.S. discrimination laws unless to do so would violate the laws of the country where their workplaces are located.

International law requires nations to honor the actions of other nations.

The International Court of Justice normally has authority to settle legal disputes only when nations voluntarily submit to its jurisdiction.

The major difference between international law and national law is that government authorities can enforce national law.

Miranda is a U.S. citizen working in Europe for Tourist Vacations, Inc., a U.S. travel agency. Tourist fires Miranda for reasons that she believes vio?late U.S. antidis?crimination laws. Those laws apply

UniVision Corporation, a U.S. company, sets up a firm in Vietnam. UniVision remains in the United States and retains ownership of the Vietnamese branch, as well as authority and control over all phases of the operation. This is

Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of Mont Blanc's goods in

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

The United States and other members of a certain organization agree to grant normal trade relations (NTR) status to each other with regard to im?ports and exports. This organi?zation is

The principle of comity basically refers to legal reciprocity.

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment

Fresh Meds, Inc., a U.S. firm, contracts with Gong, Ltd., a Hong Kong firm, al?lowing Gong to use and profit from Fresh Meds' patented products. This is

Franchising is a form of licensing.

Dynamic Oil Corporation, a U.S. firm, owns property in Ecuador. When the government of Ecuador seizes the property, Dynamic Oil asks a U.S. court to order the property's return. The court rules that Ecuador is exempt from the court's jurisdiction. This is