Deck 25: International Business

Question 1

There are no differences between the U.S.and English common law systems.

Answer 1

False

Question 2

Codification is a process by which existing common law positions are restated and laid down in a statute.

Answer 2

True

Question 3

The European Community is a purely economic organization consisting of 15 European states.

Answer 3

False

Question 4

The President administers U.S.trade laws pursuant to the authority delegated to him by the U.S.Constitution.

Question 5

Choice-of-law provisions in a contract seek to avoid later disputes over which law applies.

Question 6

Certain commodities and technical data may not be exported without an export license from the U.S.Commerce Department.

Question 7

The Department of the State administers embargoes imposed on U.S.trade with countries such as Iraq,Cuba,and North Korea.

Question 8

Countries are prohibited by international law from regulating the percentage of foreign ownership of businesses that are incorporated within their borders.

Question 9

If a host country compensates a company for lost assets,that process of nationalization is referred to as expropriation.

Question 10

Tariffs are a means by which imports may be restricted.

Question 11

Customary practice arises from legislative action.

Question 12

The principle of equity is unique to civil law legal systems.

Question 13

The traditional Islamic rules and laws that regulate Muslim life are called Sharia.

Question 14

U.S.trade laws are enacted by the Congress pursuant to the treaty power of the U.S.Constitution.

Question 15

A multinational company must obey only the business transaction laws of its home country.

Question 16

The transfer of technical data to a foreign citizen while present in the U.S.is generally not considered to be an export.

Question 17

Some countries require employers to fund employee benefits that are not expected in the U.S.

Question 18

The antidumping law is the most frequently used U.S.import-relief law.

Question 19

A political union represents the agreement of countries regarding constitutional systems.

Question 20

Courts on a national,as well as an international level,are sources of international law.

Question 21

A product is ________ when it is sold abroad below the current selling price in the exporter's home market or below the exporter's cost of production.

A)subsidized
B)dumped
C)underpriced
D)undervalued

Question 22

The North American Free Trade Agreement provides for elimination of barriers to trade between what countries?

A)The United States,Canada,and Mexico.
B)The United States,Canada,Mexico,and Brazil.
C)The United States and all South American countries.
D)The United States and Mexico only.

Question 23

________ tariffs require the importer to pay a percentage of the value of the imported merchandise.

A)Ad valorem
B)Ad hoc
C)Harmonized
D)Customs valuation

Question 24

The process by which property ownership is transferred from a nation to a private entity is called ________.

A)privatization
B)nationalization
C)appropriation
D)a transfer

Question 25

In the United States,the value of an article for customs purposes is normally the ________ value,which is the price indicated on the sales invoice.

A)customs
B)transaction
C)domestic
D)international

Question 26

In a series of laws,known collectively as the ________ laws,Congress has authorized the President to raise U.S.tariffs on specified products and to provide other forms of import protection to U.S.businesses.

A)export-relief
B)domestic-relief
C)import-relief
D)international-relief

Question 27

Through the process of ________ a nation that was not an original party to a treaty can elect to participate in a treaty at a later time.

A)ratification
B)accession
C)signing
D)approval

Question 28

The ________ was created to provide financing for the purchase of U.S.exports.

A)World Bank
B)U.S.Bank
C)Export-Import Bank of the U.S.
D)U.S.Trade Association

Question 29

Exports are controlled by means of export

A)duties
B)licenses
C)subsidies
D)customs valuations

Question 30

The ________ collects U.S.tariffs in this country.

A)U.S.Customs and Border Protection
B)Department of Commerce
C)International Trade Commission
D)U.S.Trade Representative

Question 31

The ________ is a program developed by the industrialized countries to assist developing nations by improving their ability to export

A)World Trade Organization
B)Developing Nations Schedule
C)Harmonized Tariff Schedule
D)Generalized System of Preferences

Question 32

The European Commission is the ________ of the European Union.

A)executive branch
B)legislative branch
C)administrative agency
D)none of the above

Question 33

________ avoids renegotiation of treaties by allowing the president to negotiate trade agreements and then submit them for an up or down vote by Congress with no amendments permitted.

A)Treaty approval authority
B)Executive privilege
C)Foreign affairs priority
D)Fast-track negotiating authority

Question 34

The countervailing duty law provides protection where a U.S.industry is materially injured by imports of a product benefiting from a

A)duty free zone
B)free trade zone
C)foreign subsidy
D)substantial transformation

Question 35

________ law legal systems primarily rely on case law and precedents.

A)Common
B)Civil
C)Statutory
D)Codified

Question 36

The Seventh Amendment to the U.S.Constitution guarantees the right to a jury trial in

A)"in all legal suits."
B)"in all civil and criminal suits."
C)"in suits at common law."
D)"in all civil and criminal suits" and also "in suits at common law"

Question 37

________ is the process by which a country asserts a right to regulate activities that occur beyond its borders.

A)Internationalization
B)Nationalization
C)Extraterritoriality
D)None of the above

Question 38

A ________ is created when a group of states reduce or eliminate tariffs between themselves but maintain their own individual tariffs as to other states.

A)free trade area
B)Caribbean basin initiative
C)customs union
D)most favored nation

Question 39

The ________ provides for temporary relief to domestic industries seriously injured by increasing imports,regardless of whether unfair practices are involved.

A)fair trade law
B)import-relief law
C)duty free zone
D)foreign trade zone

Question 40

________ is the principal U.S.statute addressing unfair foreign practices affecting U.S.exports of goods or services.

A)Section 301 of the Trade Act of 1974
B)Section 502 of the Trade Act of 1990
C)The Unfair Export Limits Act
D)The International Control Act

Question 41

Senator Smith is tired of all the imports of televisions coming into this country.He proposes a bill by which all foreign-made televisions will be taxed at additional $100 before being allowed into the country.He receives a great deal of support for his bill,but one senator questions whether such an arrangement is illegal since it will discriminate against imported goods.Which of the following is correct?

A)There is no problem with the additional tax because the U.S.is a sovereign nation.
B)There is no problem with the tax so long as it can be shown that American jobs are being lost due to the number of televisions being imported.
C)Under the principle of national treatment,the U.S.,as a member of the World Trade Organization,may not discriminate against imported goods and may not apply the tax unless it is also applied equally to domestic products.
D)The tax may not be imposed under the Uniform Trade Initiative.

Question 42

Amanda was just hired to work for a federal agency in the procurement department.Amanda shops for the best buy possible and thinks she has found a great deal.She returns to her office and tells her supervisor about her discovery.Her boss tells her to be sure that the Buy American Act is satisfied.Amanda decides to research the law.What will she find?

A)That under all circumstances federal agencies must purchase products that are 100% made in the U.S.A.
B)That under all circumstances federal agencies must purchase products with at least 75% of the components made in the U.S.A.
C)That unless the price is a certain percentage higher than the price of the equivalent foreign product,federal agencies must buy products with at least 50% of the components made in the U.S.A.
D)That federal agencies may buy foreign made products so long as it can be established that a representative did comparison shopping and that the foreign made good is a better deal.

Question 43

Allison,a dress designer,believes that she has a great deal with a company in Ireland,called Fashion,which has agreed to purchase a number of her dresses.The manager of Fashion,however,insists on delivery of the dresses before payment will be provided.Which of the following would be a good idea for Allison?

A)Allison should insist on a documentary letter of credit provided by an issuing bank promising payment upon proof of delivery of the dresses.
B)Allison should insist on a letter of credit issued by the buyer promising payment.
C)Allison should personally deliver the dresses so that she can demand payment while there.
D)Allison should turn down the deal because it is too risky.

Question 44

The Council of Ministers is the legislative body of

A)NAFTA.
B)GATT.
C)the Treaty of Rome.
D)the European Union.

Question 45

The Foreign Corrupt Practices Act was passed in 1977 as an amendment to the

A)Securities Act of 1933.
B)Securities Exchange Act of 1934.
C)Trade Act of 1974.
D)Tariff Act of 1930.

Question 46

Courts apply the principles of ________ to determining which country's laws should be used to interpret an international contract.

A)the United Nations CISG
B)conflict of law
C)international law
D)domestic law

Question 47

One simple way of addressing foreign tax risks is a(n)________,whereby the local licensee is obligated to pay all taxes other than those specifically allocated to the foreign partner.

A)gross-up clause
B)tax shift clause
C)local commitment clause
D)overseas investment clause

Question 48

The ________ is the sole basis for obtaining jurisdiction over a foreign government in U.S.courts.

A)Foreign Sovereign Immunities Act of 1976
B)constitution
C)foreign treaty power of the President
D)none of the above

Question 49

Under the principle of ________,a court will enforce another country's judgments under certain conditions.

A)comity
B)harmony
C)act-of-state
D)conciliation

Question 50

How does a business manager determine whether or not to go international? Discuss the economic,political,legal,geographic and cultural factors involved.What are the alternative methods for international investment? Discuss fully.

Question 51

The members of the European Parliament are elected by the ________ of the member states.

A)legislative branch
B)executive branch
C)citizens
D)Council of Ministers

Question 52

Jackson owns a business in a foreign country that is considered "friendly" with the U.S.but which has significant political unrest.Jackson is uneasy about the situation in the country.He is concerned that his business could be the subject of expropriation or losses due to civil unrest.What advice would you give him?

A)He should seek insurance through the Foreign Insurance Services Company,a privately run insurance company specializing in foreign risk.
B)He should do nothing at the present,but seek reimbursement through the U.S.government should losses be incurred.
C)He should seek insurance through the Overseas Private Investment Corporation,a U.S.government agency specializing in providing insurance for foreign risk.
D)He should sell the company and leave the country because insurance is not available

Question 53

Connie owns a retail establishment that sells electronics.She does a lot of business with Company ABC in Japan.Connie does not want to learn Japanese law or travel to Japan in the event of a dispute with the company.She seeks advice regarding how to protect herself from such risks in the event of a dispute.Which of the following would be a good idea for Connie?

A)A choice-of-law provision.
B)A choice-of-forum provision.
C)A conflict-of-laws provision.
D)Both a choice-of-law provision and a choice-of-forum provision.

Question 54

________ is a process used mainly in the area of public international law whereby a third party,often a disinterested government,brings the parties together by establishing communication and providing a site where the parties can meet,often in secret.

A)Public involvement
B)Good offices
C)International involvement
D)Best transactions

Question 55

Describe differences between the U.S.and British common law systems.

Question 56

What is the principle of comity? When conditions must usually exist for the principle to be applied?

Question 57

A contract dispute which is heard by a court without reference to a prior arbitration is known as a(n)________ review.

A)appellate
B)de novo
C)arbitration
D)ad hoc

Question 58

What is the commercial activity exception to the Foreign Sovereign Immunities Act?

Question 59

When internationally accepted arbitration rules are used in conjunction with the parties' own methods of selecting an arbitration panel,it is known as a(n)________ arbitration.

A)multinational
B)neutral
C)ad hoc
D)private

Question 60

Explain documentary letters of credit.Include in this discussion the relevant terms that apply to each step of the process.

Question 61

Explain the legal issues involved in international sales contracts.How do the rules of conflict of laws,choice of forum,and arbitration address these issues? Discuss fully.