Deck 17: International Law and Business

Question 1

Rules governing arbitration proceedings are less restrictive than rules governing court proceedings.

Answer 1

True
Explanation: Rules governing arbitration proceedings are less restrictive than rules governing court proceedings.

Question 2

The Uruguay round is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in 2001.

Answer 2

False
Explanation: The Doha round is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in 2001.

Question 3

The International Monetary Fund (IMF) is a nongovernmental organization.

Answer 3

False
Explanation: The International Monetary Fund (IMF) is an intergovernmental organization.

Question 4

The seller retains title when dealing with an export trading company.

Question 5

A treaty is simply a negotiated contract between parties who happen to be nations.

Question 6

The UN Convention on the International Sale of Goods is also known as the Vienna Convention.

Question 7

The Office of the U.S. Trade Representative (USTR) is part of the executive Office of the President.

Question 8

The Bureau of Industry and Security is responsible for implementing and enforcing the Export Administration Regulations (EAR).

Question 9

The Uruguay round is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in 2001.

Question 10

The Vienna Convention applies to household goods purchased for personal use.

Question 11

The ambassador of the Office of the U.S. Trade Representative (USTR) serves as a voting member of the Export-Import Bank.

Question 12

The Foreign Corrupt Practices Act applies to private sector bribery.

Question 13

Which of the following countries is the world's largest trading nation?

A) France
B) Germany
C) China
D) United States

Question 14

In the context of international trade, GATT stands for Geographical Association on Tariff and Trade.

Question 15

Grey market goods are counterfeit goods manufactured in the United States.

Question 16

The Red Cross is an intergovernmental organization.

Question 17

In the context of sources of international law, which of the following terms best represents a principle or practice that has developed over a course of dealing?

A) Treaty
B) Contract
C) Custom
D) Executive order

Question 18

In the U.S., genetically modified foods are labeled as such and anything not so labeled can be assumed to be organic food.

Question 19

An export management company generally is smaller and usually handles only one product or type of product.

Question 20

Dumping occurs when a product is sold for more money in the countries into which it is imported than it is sold for in the home country.

Question 21

Which of the following types of legal systems exists in most of the South America?

A) Customary law
B) Common law
C) Civil law
D) Muslim law

Question 22

Which of the following organizations is an intergovernmental organization?

A) Red Cross
B) Physicians for Social Responsibility
C) Rotary International
D) International Monetary Fund

Question 23

Which of the following terms best represents a negotiated contract between parties who happen to be nations?

A) Convention
B) Treaty
C) Custom
D) Protocol

Question 24

The most-favored-nation rule imposed a duty on member nations to:

A) charge lower tariffs on agricultural products.
B) charge higher tariffs on electronic equipments.
C) charge lower tariffs to less developed countries.
D) charge the same tariff to every country.

Question 25

Which of the following organizations replaced GATT as an international organization?

A) World Trade Organization
B) United Nations
C) International Monetary Fund
D) Red Cross

Question 26

In the context of international business, GATT stands for:

A) Geographical Agreement on Trade and Tariff.
B) Global Agreement on Tariff and Trade.
C) General Agreement on Tariff and Trade.
D) Geographical Association for Transport and Trade.

Question 27

The BIS is charged with the development, implementation, and interpretation of U.S. export control policy for purely commercial commodities, dual-use commodities, software, and technology. In this context, a dual use commodity is one which has commercial but also _____ applications.

A) military
B) scientific
C) environmental
D) educational

Question 28

The _____ is located within the Department of Commerce. It promotes world trade and strengthens the position of the United States in international trade and investments. It also assists the International Trade Commission when the latter investigates charges of unfair trade practices.

A) Agency for International Development
B) Administrative Conference of the United States
C) U.S. Customs and Border Protection
D) International Trade Administration

Question 29

The _____ is responsible for implementing and enforcing the Export Administration Regulations (EAR). It is charged with the development, implementation, and interpretation of U.S. export control policy for purely commercial commodities, dual-use commodities, software, and technology.

A) Bureau of Economic Analysis (BEA)
B) Office of Compliance
C) Bureau of Industry and Security (BIS)
D) Federal Judicial Center

Question 30

The Ambassador of the _____ serves as the vice chairman of the Oversees Private Investment Corporation (OPIC).

A) Office of U.S. Trade Representative
B) International Trade Administration (ITA)
C) Bureau of Industry and Security
D) International Trade Commission (ITC)

Question 31

Which of the following statements is NOT true regarding a nongovernmental organization?

A) It operates as a private organization.
B) It depends on charitable contributions.
C) International Monetary Fund is a nongovernmental organization.
D) These are generally nonprofit organizations.

Question 32

Which of the following types of legal systems exists in most of the Oceania?

A) Customary law
B) Common law
C) Civil law
D) Muslim law

Question 33

The Bureau of Industry and Security (BIS) is located within the _____.

A) Department of State
B) Department of Commerce
C) Department of Treasury
D) Department of Justice

Question 34

The _____ is part of the executive Office of the President and it is the official U.S. representative in all activities concerning the GATT.

A) Office of Management and Budget
B) Office of the U.S. Trade Representative
C) Administrative Office of the U.S. Courts
D) Office of Special Counsel

Question 35

The ambassador of the Office of the U.S. Trade Representative (USTR) serves as:

A) the president of the World Trade Organization.
B) a nonvoting member of the Export-Import Bank.
C) the vice president of the World Bank.
D) a member of the International Monetary Fund.

Question 36

Which of the following organizations is a nongovernmental organization?

A) World Trade Organization
B) Rotary International
C) International Monetary Fund
D) United Nations

Question 37

This federal agency is housed within the U.S. Department of Homeland Security. In terms of international business, the office is charged with the responsibility for collecting customs duties, export taxes, fees, and penalties owed for imported merchandise. Identify the federal agency in the discussion.

A) The International Trade Administration
B) The Office of the U.S. Trade Representative
C) The U.S. Customs and Border Protection
D) The Bureau of Industry and Security

Question 38

This organization was established in 1960 as the successor to the international body that had administered the Marshall Plan. The principal purpose of this organization is to coordinate the key economic policies of the major industrialized countries. Identify the organization in discussion.

A) World Trade Organization (WTO)
B) Organization for Economic Cooperation and Development (OECD)
C) International Monetary fund (IMF)
D) Bureau of Industry and Security (BIS)

Question 39

The _____ round is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in 2001.

A) Tokyo
B) Geneva
C) Uruguay
D) Doha

Question 40

A legal system based on the _____ law exists in most of the North America.

A) customary
B) common
C) civil
D) muslim

Question 41

Which of the following acts prohibits U.S. companies and citizens from bribing public officials to keep or obtain business?

A) Workforce Investment Act
B) The Foreign Corrupt Practices Act (FCPA)
C) North American Free Trade Agreement Implementation Act
D) American Recovery and Reinvestment Act

Question 42

Which of the following types of mechanisms is most likely used by McDonald's for operating on international level?

A) Joint venture
B) Franchising
C) Exporting
D) Direct sale

Question 43

Which of the following statements is true regarding an export management company (EMC)?

A) An EMC is generally larger in size than an export trading company.
B) An EMC takes titles to the goods while the goods are in the producers country.
C) The sellers are provided with revenue once they sell the products to the EMC.
D) An EMC generally handles only one product or one type of a product.

Question 44

This organization is an independent agency that provides trade expertise to the legislative and executive branches of government. It advises the President and investigates issues such as the balance of trade between imports and exports, the economic impact in the United States of any proposed trade agreements, and effects of foreign competition on the United States. It can impose countervailing duty on products determined by the International Trade Administration to harm domestic manufacturers. Identify the organization in discussion.

A) U.S. Customs and Border Protection
B) The Office of the U.S. Trade Representative
C) The Bureau of Industry and Security
D) International Trade Commission

Question 45

Explain with an example, implications of cultural differences in international business.

Question 46

Which of the following statements is true regarding arbitration?

A) The rules governing arbitration proceedings are more restrictive than court proceedings.
B) Arbitration is rarely used for dispute resolution.
C) The cost of arbitration is more than that of litigation.
D) It can be structured in almost any way that accommodates the needs of the parties. Rules governing arbitration proceedings are far less restrictive than court proceedings, and generally, the cost of arbitration is much less than litigation.

Question 47

Which of the following statements is true regarding grey market goods?

A) Grey market goods are manufactured in the United States.
B) Grey market goods are the same as the counterfeit goods.
C) Grey market goods are imported into the U.S without consent of the American trademark holder.
D) Grey market goods bear a valid U.S. trademark.

Question 48

The laws that are used to penalize those who are found to dump their products are called _____ laws.

A) non-tariff barrier
B) countervailing
C) antidumping
D) grey market

Question 49

The Paris Convention deals with:

A) dumping.
B) countervailing duties.
C) product-specific quotas.
D) trademarks protection.

Question 50

Which of the following statements is true regarding the Foreign Corrupt Practices Act?

A) The FCPA cannot be violated only by making an offer for corruption.
B) The FCPA applies to foreign officials.
C) Foreign corporations are not directly subject to the FCPA.
D) The FCPA applies to private sector bribery.

Question 51

What is a custom?

Question 52

Which of the following organizations performs the task of enforcing violations of the Tariff Act of 1930 known as "337" actions?

A) The Office of U.S. Trade Representative
B) The International Trade Administration (ITA)
C) The Bureau of Industry and Security
D) The International Trade Commission (ITC) The International Trade Commission (ITC) performs the task of enforcing violations of the Tariff Act of 1930 (19 U.S.C. 1337), known as "337" actions.

Question 53

At the time of imposing a countervailing duty, which of the following organizations determines whether a government subsidy exists and if so, how much and in what form?

A) The Office of U.S. Trade Representative
B) The International Trade Administration (ITA)
C) The Bureau of Industry and Security
D) The International Trade Commission (ITC)

Question 54

Which of the following statements is true regarding the UN Convention on the International Sale of Goods (CISG) treaty?

A) It is also known as the Geneva Convention.
B) It is applicable only between merchants doing business.
C) It is not yet adopted by the United States.
D) It applies to household goods purchased for personal use.

Question 55

Which of the following mechanisms is most likely to be used to make up for the competitive edge gained by the reduction in cost to produce the item created by the subsidy?

A) Countervailing duty
B) Antidumping laws
C) Product-specific quotas
D) Packaging and labeling conditions

Question 56

Before imposing a countervailing duty, which of the following organizations determines whether a domestic company is suffering because of the subsidized product?

A) The Office of U.S. Trade Representative
B) International Trade Administration (ITA)
C) Bureau of Industry and Security
D) International Trade Commission (ITC)

Question 57

The UN Convention on the International Sale of Goods is also known as the _____ convention.

A) Vienna
B) Geneva
C) Doha
D) Tokyo

Question 58

Which of the following statements is true regarding an export trading company (ETC)?

A) The seller retains title when dealing with an ETC.
B) An ETC generally handles only one product or one type of a product.
C) The sellers are provided with revenue once they sell the products to the ETC.
D) An ETC is generally smaller than an export management company. Both ETC and EMC (export management company) provide the service of exporting a seller's product into an overseas market. An EMC generally is smaller and usually handles only one product or type of product; an ETC generally handles more types of goods and is larger. Another difference is that an ETC takes title to goods while the goods are still in this country, thereby providing the seller with revenue upon sale to the ETC.

Question 59

Dumping occurs when:

A) a country imposes nontariff barriers on the imports of certain products with the help of product specific quotas.
B) a product is sold for less money in the countries into which it is imported than it is sold for in the home country.
C) a country charges different tariffs to different countries.
D) a product is not sold into the home country but is exported to other countries.

Question 60

_____ is the preferred method of dispute resolution for most merchants.

A) Litigation
B) Negotiation
C) Arbitration
D) Conciliation

Question 61

What are the three broad principles of the World Trade Organization (WTO)?

Question 62

Discuss the permanent normal trade relations status.

Question 63

What is dumping?

Question 64

Discuss the functions performed by the International Trade Administration (ITA).

Question 65

Discuss the difference between an export trading company (ETC) and export management company (EMC).

Question 66

What are grey market goods?

Question 67

Discuss briefly the Foreign Corrupt Practices Act (FCPA).

Question 68

Discuss the establishment of the World Trade Organization.

Question 69

Discuss the duties and the responsibilities of the Office of the U.S. Trade Representative (USTR).

Question 70

Discuss the significance of the countervailing duty.

Question 71

Discuss the various functions performed by the Bureau of Industry and Security (BIS).

Question 72

Discuss franchising.

Question 73

Discuss the UN Convention on the International Sale of Goods.

Question 74

Discuss characteristics of nongovernmental organizations.

Question 75

What are the two types of international organizations?