Deck 22: The International Legal Environment of Business

Question 1

Lex meractoria refers to:

A)ancient Egyptian trade law with foreign traders
B)rules governing commercial transactions in Europe in the Middle Ages
C)African trade rules
D)Roman law regarding banking and trade rules with the empire
E)Greek law regarding trade with the Ottoman Empire

Answer 1

B

Question 2

In recent decades the share of U.S.gross domestic product in international trade has:

A)fallen from about 12 percent to 10 percent
B)nearly doubled
C)risen from about 10 percent to 12 percent
D)tripled
E)none of the other choices

Answer 2

A

Question 3

Early trade customs for international commerce centered principally on the rules governing:

A)the concept of territory
B)sovereign jurisdiction
C)the law of the sea
D)nationality
E)the various local stock exchanges

Answer 3

C

Question 4

During the Middle Ages,rules governing commercial transactions in Europe were known as:

A)the lex imperium
B)the lex mercatoria
C)the lex loci
D)the lex gentium
E)the lex populi

Question 5

The ______________ promotes private foreign investment through loans and guarantees and also provides technical and managerial assistance on large capital projects.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Trade Organization
D)Commission on International Trade Law
E)none of the other choices are correct

Question 6

Major source(s)of international commercial law is (are):

A)decisions of the Permanent Court of Commercial Justice
B)commercial laws of individual countries
C)trade agreements
D)commercial laws of individual countries and trade agreements
E)decisions of the Permanent Court of Commercial Justice and commercial laws of individual countries and trade agreements

Question 7

Lex meractoria refers to:

A)ancient Egyptian trade law
B)Greek law regarding international crimes
C)African trade rules
D)Roman law regarding banks
E)none of the other choices are correct

Question 8

Which of the following is a risk that international businesses face:

A)political risks
B)financial risks
C)regulatory risks
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 9

International businesses face risks that include:

A)political risks
B)financial risks
C)regulatory risks
D)financial and regulatory risks
E)political,financial and regulatory risks

Question 10

International business is often defined to include:

A)business transactions that involve two or more countries
B)the movement of services,capital,and personnel across national boundaries
C)the transactions of multinational firms
D)business transactions that involve two or more countries and the movement of services,capital,and personnel across national boundaries
E)business transactions that involve two or more countries and the movement of services,capital,and personnel across national boundaries and the transactions of multinational firms

Question 11

Business transactions that involve entities from two or more countries are defined as:

A)international business
B)transcontinental business
C)expansive business
D)multilateral business
E)widespread business

Question 12

The ______________ is responsible for promoting international trade by working to promote the stability of government finances and currency exchange rates.

A)World Intellectual Property Organization
B)World Bank
C)World Trade Organization
D)Commission on International Trade Law
E)none of the other choices are correct

Question 13

Early trade customs did NOT include:

A)rights of shipping in foreign ports
B)salvage rights
C)fishing rights
D)freedom of passage
E)all of the other specific choices were included in early trade customs

Question 14

Which of the following is NOT a main source of international commercial law:

A)laws of individual nations
B)laws defined by trade agreements between countries
C)rules enacted by worldwide or regional organizations
D)all of the other specific choices are sources of international commercial law
E)none of the other specific choices are correct

Question 15

The ______________ promotes private foreign investment through loans and guarantees and also provides technical and managerial assistance on large capital projects.

A)World Bank
B)International Monetary Fund
C)World Trade Organization
D)Commission on International Trade Law
E)World Intellectual Property Organization

Question 16

During the Middle Ages,rules governing commercial transactions in Europe were known as:

A)the lex imperium
B)the lex populi
C)the lex loci
D)the lex gentium
E)none of the other choices

Question 17

The ______________ is responsible for promoting international trade by working to promote the stability of government finances and currency exchange rates.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Trade Organization
D)Commission on International Trade Law
E)United Nations

Question 18

Early trade customs included:

A)rights of shipping in foreign ports
B)salvage rights
C)fishing rights
D)freedom of passage
E)all of the other specific choices are correct

Question 19

Which of the following is a main source of international commercial law:

A)laws of individual nations
B)laws defined by trade agreements between countries
C)rules enacted by worldwide or regional organizations
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 20

International commercial codes date as far back as:

A)Egyptians in 1400 B.C.
B)Cavemen at the dawn of time
C)the British in the 1700s
D)the Australian slave trade in the 1800s
E)16ᵗʰ century France

Question 21

Since 1995,the _________ has overseen trade agreements and has worked to set up a dispute-resolution system using three-person arbitration panels.

A)the United Trade Organization
B)the International Trading Union
C)the General Agreement on Tariffs and Trade
D)the World Trade Organization
E)the Unified Trade Group

Question 22

Of the various forums for resolving international commercial disputes,the least important is:

A)arbitration
B)International Court of Justice
C)domestic (national)courts
D)all of the other choices are of about equal importance
E)none of the other choices are used much

Question 23

The primary focus of the GATT and WTO negotiations has been:

A)to reduce exchange rate fluctuations
B)to increase anti-competitive behaviors
C)to promote the use non-tariff barriers
D)to develop world-wide rules on human rights
E)none of the other choices

Question 24

Which of the following is a result of NAFTA:

A)greater Mexican protection of U.S.and Canadian intellectual property
B)prevention of U.S.companies evading U.S.environmental laws by going to Mexico
C)creation of a trade area with over 400 million consumers
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 25

Which of the following is an industry that is greatly affected by NAFTA:

A)agriculture
B)automobiles
C)pharmaceuticals
D)textiles
E)all of the other specific choices are correct

Question 26

Today,international law can be enforced largely:

A)at the United Nations International Court
B)through international arbitration
C)in the courts of an individual country
D)through international arbitration and in the courts of an individual country
E)at the United Nations International Court and through international arbitration and in the courts of an individual country

Question 27

The _______________promotes international trade by working to reduce trade barriers and to establish uniform tariff schedules and trade rules.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Bank
D)Commission on International Trade Law
E)none of the other choices are correct

Question 28

The _______________promotes international trade by working to reduce trade barriers and to establish uniform tariff schedules and trade rules.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Trade Organization
D)Commission on International Trade Law
E)World Bank

Question 29

NAFTA is a trading agreement that promotes free trade.Which of these countries is a member?

A)Canada
B)Brazil
C)Uruguay
D)France
E)Great Britain

Question 30

Which of the following countries is not a member of the North American Free Trade Agreement:

A)Canada
B)Brazil
C)Mexico
D)U.S.
E)all of the other choices are members

Question 31

The ________________ promotes uniformity in laws and discourages legal obstacles to trade.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Trade Organization
D)World Bank
E)none of the other choices are correct

Question 32

Approximately how many consumers are in the trade area created by NAFTA:

A)500,000
B)5 million
C)40 million
D)400 million
E)400 billion

Question 33

Which of the following is NOT an industry that is affected by NAFTA:

A)agriculture
B)automobiles
C)pharmaceuticals
D)textiles
E)all of the other specific choices are affected by NAFTA

Question 34

Although NAFTA was signed in 1992,it did not go into effect until:

A)1993
B)1994
C)1998
D)2000
E)2010

Question 35

The World Trade Organization replaced the:

A)the United Trade Organization
B)the International Trading Union
C)the General Agreement on Tariffs and Trade
D)the European Trade Organization
E)the Unified Trade Group

Question 36

An organization was created to replace the GATT (General Agreement on Tariffs and Trade).This organization is:

A)the United Trade Organization
B)the International Trading Union
C)the World Trade Organization
D)the European Trade Organization
E)the Unified Trade Group

Question 37

The _______________ is the principal court of the United Nations.

A)World Intellectual Property Organization
B)International Monetary Fund
C)International Court of Justice
D)Commission on International Trade Law
E)World Bank

Question 38

The ________________ promotes uniformity in laws and discourages legal obstacles to trade.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Trade Organization
D)Commission on International Trade Law
E)World Bank

Question 39

The primary focus of the GATT and WTO negotiations has been:

A)to reduce trade barriers
B)to increase anti-competitive behaviors
C)to promote the use non-tariff barriers
D)to develop world-wide rules on human rights
E)none of the other choices

Question 40

The _______________ is the principal court of the United Nations.

A)World Intellectual Property Organization
B)International Monetary Fund
C)World Bank
D)Commission on International Trade Law
E)none of the other specific choices are correct

Question 41

Restrictions on a country's imports are generally imposed for which of the following reasons:

A)the country cannot produce the good itself,but wants to make money on it
B)to generate revenue for the government
C)to cause tension with other countries
D)to reduce incentives for U.S.countries to outsource
E)none of the other choices are correct

Question 42

France wanted to maintain trade barriers in which of the following industries due to fear of U.S.domination:

A)business research
B)civil aviation
C)agriculture
D)film and television programming
E)none of the other specific choices are correct

Question 43

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

A)steel
B)toys
C)paper
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 44

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

A)furniture
B)medical equipment
C)paper
D)pharmaceuticals
E)all of the other specific choices are correct

Question 45

Which of the following industries is NOT one of the ones in which the United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves:

A)furniture
B)medical equipment
C)paper
D)pharmaceuticals
E)all of the other specific choices are industries where the nations agreed to eliminate tariffs

Question 46

Which of the following industries is NOT one of the ones in which the United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves:

A)furniture
B)medical equipment
C)paper
D)computers
E)all of the other specific choices are industries where the nations agreed to eliminate tariffs

Question 47

Which country wanted to maintain trade barriers in the film and television programming industry due to fear of American domination:

A)Kenya
B)France
C)Guatemala
D)Spain
E)Germany

Question 48

Which of the following is a way to regulate imports:

A)complicated customs procedures
B)government procurement policies
C)safety and manufacturing standards
D)all the other specific choices are correct
E)none of the other specific choices are correct

Question 49

Which of the following nations have agreed to eliminate tariff completely among themselves in ten industries:

A)the United States
B)Japan
C)Canada
D)France
E)all of the other specific choices are correct

Question 50

When member countries of the World Trade Organization files a dispute with the organization,the dispute will be resolved by:

A)the General Assembly of the United Nations
B)the Board of the International Monetary Fund
C)the World Bank
D)a three-person arbitration panel
E)the International Court of Justice

Question 51

The WTO trade agreement is to reduce tariffs on a number of goods,including steel,farm machinery,furniture,paper and medical equipment by:

A)10%
B)25%
C)30%
D)50%
E)100%

Question 52

WTO countries agree to reduce or eliminate government subsidies for which of the following:

A)business research
B)civil aviation
C)agriculture
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 53

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

A)beer
B)construction equipment
C)distilled spirits
D)farm machinery
E)all of the other specific choices are correct

Question 54

Which of the following is a NOT way to regulate imports:

A)complicated customs procedures
B)government procurement policies
C)safety and manufacturing standards
D)all the other specific choices are ways to regulate imports
E)none of the other specific choices are ways to regulate imports

Question 55

A World Trade Organization arbitration panel has:

A)3 people
B)5 people
C)10 people
D)12 people
E)15 people

Question 56

Restrictions on a country's imports are generally imposed for which of the following reasons:

A)the country cannot produce the good itself,but wants to make money on it
B)to protect a country's domestic industries from foreign competition
C)to reduce competition with other countries
D)to reduce incentives for U.S.countries to outsource
E)none of the other choices are correct

Question 57

WTO countries have NOT agreed to reduce or eliminate government subsidies for which of the following:

A)business research
B)civil aviation
C)agriculture
D)all of the other specific choices are correct
E)none of the other specific choices are correct

Question 58

One area in which the U.S.was not successful in gaining trading concessions from its WTO partners to reduce trade barriers was in:

A)construction equipment
B)film and television programming
C)civil aviation
D)agriculture
E)steel

Question 59

When member countries of the World Trade Organization files a dispute with the organization,the dispute will be resolved by:

A)the General Assembly of the United Nations
B)the Board of the International Monetary Fund
C)the World Bank
D)the International Court of Justice
E)none of the other choices

Question 60

Which of the following is a way to regulate imports:

A)import licensing procedures
B)quotas
C)testing requirements
D)all the other specific choices are correct
E)none of the other specific choices are correct

Question 61

Which of the following is a way to regulate imports:

A)import licensing procedures
B)quotas
C)testing requirements
D)all the other specific choices are ways to regulate imports
E)none of the other specific choices are ways to regulate imports

Question 62

Business wanting to know the duty (tax)imposed by customs on their product should consult:

A)the Federal Register
B)the International Convention on the Sale of Goods
C)the National Brands Weekly
D)the tariff schedules
E)the Internal Revenue Code

Question 63

The U.S.uses a Harmonized Tariff Schedule that:

A)completed a 25-year formal governmental transfer from specific to ad valorem tariffs on all products
B)adopted the GATT tariff schedules set forth by the Community of Nations Accord signed in Paris in 1982
C)were developed by a group of countries to standardize the ways goods are classified by customs officials worldwide
D)provide for specific exemptions from WTO tariff schedules
E)bring U.S.tariffs in line with tariffs imposed on goods imported into foreign trade zones and duty-free ports

Question 64

A tariff which imposes a fixed tax on each unit of a product is known as a(n):

A)fixed tariff
B)duty tariff
C)percentage tariff
D)ad valorem tariff
E)none of the other choices are correct

Question 65

A tariff which imposes a tax as a percentage of the price of a product is known as a(n):

A)fixed tariff
B)duty tariff
C)specific tariff
D)percentage tariff
E)none of the other choices are correct

Question 66

Unlike an ad valorem tariff in international trade,the specific tariff is:

A)applied only to imports while the ad valorem tariff is applied only to exports
B)applied only to products produced in countries that are not members of the WTO
C)applied only to goods and the ad valorem is applied only to services
D)identical to ad valorem tariff,not different
E)none of the other choices

Question 67

A specific tariff is:

A)applied only to exports
B)set as a percentage of the product price of an imported good
C)applied only to products produced in countries that are not members of the WTO
D)a fixed tax amount applied to an import
E)none of the other choices

Question 68

Unlike an ad valorem tariff in international trade,the specific tariff is:

A)applied only to imports while the ad valorem tariff is applied only to exports
B)a fixed tax and the ad valorem tariff is set as a percentage of the product price
C)applied only to products produced in countries that are not members of the WTO
D)applied only to goods and the ad valorem is applied only to services
E)none of the other choices;the tariffs do not differ in use in international trade

Question 69

Another word for tariff is:

A)fee
B)fine
C)duty
D)responsibility
E)custom

Question 70

The U.S.publishes the duty imposed by customs on products entering U.S.ports in the:

A)federal tariff listings
B)tariff regulations
C)tariff rules
D)tariff postings
E)none of the other choices are correct

Question 71

A tariff which imposes a tax as a percentage of the price of a product is known as a(n):

A)fixed tariff
B)duty tariff
C)specific tariff
D)ad valorem tariff
E)percentage tariff

Question 72

Business wanting to know the duty (tax)imposed by customs on their product should consult:

A)the Federal Register
B)the International Convention on the Sale of Goods
C)the National Brands Weekly
D)the Internal Revenue Code
E)none of the other choices

Question 73

The U.S.uses a Harmonized Tariff Schedule that:

A)completed a 25-year formal governmental transfer from specific to ad valorem tariffs on all products
B)adopted the GATT tariff schedules set forth by the Community of Nations Accord signed in Paris in 1982
C)bring U.S.tariffs in line with tariffs imposed on goods imported into foreign trade zones and duty-free ports
D)provide for specific exemptions from WTO tariff schedules
E)none of the other choices

Question 74

The U.S.publishes the duty imposed by customs on products entering U.S.ports in the:

A)tariff schedules
B)tariff regulations
C)tariff rules
D)tariff postings
E)federal tariff listings

Question 75

An ad valorem tariff is:

A)duty or tax levied by a government on an exported good
B)flat tax applied to each unit of the product
C)a tax imposed by the WTO on category B and E goods
D)applied only to such products as weapons,alcohol,and tobacco products
E)none of the other choices

Question 76

A specific tariff is:

A)applied only to exports
B)set as a percentage of the product price of an imported good
C)applied only to products produced in countries that are not members of the WTO
D)applied only to goods,not services
E)none of the other choices

Question 77

A tariff which imposes a fixed tax on each unit of a product is known as a(n):

A)fixed tariff
B)duty tariff
C)specific tariff
D)ad valorem tariff
E)percentage tariff

Question 78

An ad valorem tariff is:

A)duty or tax levied by a government on an exported good
B)fixed tax or duty on each unit of the product
C)tax based on a percentage of the price of the product
D)applied only to such products as munitions,alcohol,and tobacco products
E)none of the other choices

Question 79

The U.S.standardizes the way in goods are classified by customs officials by using a(n):

A)harmonic tariff schedule
B)standardized tariff schedule
C)universal tariff schedule
D)complete tariff schedule
E)none of the other choices are correct

Question 80

The U.S.standardizes the way in goods are classified by customs officials by using a(n):

A)harmonic tariff schedule
B)harmonized tariff schedule
C)universal tariff schedule
D)complete tariff schedule
E)standardized tariff schedule