Deck 12: Laws Affecting International Business and Travel

Question 1

In a high-context culture,the situation is more important than the written word.

Answer 1

False

Question 2

In Japan contracts are always considered open for renegotiation.

Answer 2

False

Question 3

If you are going to drive abroad,you should obtain an International Driver's License.

Answer 3

False

Question 4

The International Emergency Economic Powers Act of 1977 governs research-oriented information from being communicated to foreigners.

Question 5

Drawer regulations are examples of written business laws.

Question 6

When a company becomes global,it is governed by

A)home country laws and host country laws.
B)home country laws.
C)host country laws.
D)The Act of State Doctrine.

Question 7

Thematization is the process by which a framework for mutual communication and satisfaction is reached.

Question 8

Which of the following ensures fair competition and low prices to U.S.consumers?

A)Antiboycott Regulations
B)Antitrust Laws
C)Export Administration Act of 1985
D)Trading with the Enemy Act of 1917

Question 9

The Act of State Doctrine allows each nation to do as it wishes within its own boundaries without interference from other nations.

Question 10

The World Court is a body of the United Nations that provides a way to settle international disagreements between corporations.

Question 11

Travelers to Japan should expect some differences in hotel accommodations.
Multiple Choice.Circle the letter corresponding to the correct response.

Question 12

If a supplier ships goods a buyer has not requested and the buyer accepts them,the buyer is forming a contract by accepting the goods.

Question 13

Macaulay's thesis involves the concept that firms are looking for short-term foreign relationships.

Question 14

Renting a car for travel in China is recommended.

Question 15

The Doctrine of Sovereign Compliance can be used as a defense in your home country for laws followed in the host country.

Question 16

While most of the United States practices civil law,Mexico practices common law.

Question 17

Business communication between persons of different national origins is governed by the law of the host country.

Question 18

The means/ends question is measured by two extremes: relativity and deviation from the rule.

Question 19

The United States is a signatory to the trademark protection act of the Madrid Convention.

Question 20

Using city buses is recommended when traveling in Brazil.

Question 21

The process by which a framework for mutual communication and satisfaction is reached is

A)thematization.
B)unified governance.
C)a contract.
D)antidiversion.

Question 22

The most important document to carry when traveling outside your native country is your

A)visa.
B)consulate papers.
C)passport.
D)birth certificate.

Question 23

Which of the following statements concerning contracts isincorrect?

A)A contract is an agreement between parties to do something and can be made either by speaking,writing,or conduct.
B)In the United States an oral contract is legally enforceable if the parties admit that the contract was made.
C)In Japan most contract disputes are discussed and resolved through legal intervention.
D)The word contract is important to legal enforceability.

Question 24

If you break the law in another country,you may

A)not call anyone other than a lawyer.
B)only be tried for a crime according to the laws of your home country.
C)ask the consulate for legal,medical,or financial advice.
D)ask the consulate to get you out of jail.

Question 25

Which statement regarding international law is incorrect?

A)The International Court of Justice,or World Court,is a body of the United Nations.
B)Institutions interested in uniform world laws include the International Chamber of Commerce,The Hague Convention,and the Vienna Agreement.
C)Unified laws have produced unified judicial practices.
D)The EU and NAFTA are agreements that are trying to equalize the treatment of organizations doing business multinationally.

Question 26

Which of the following statements concerning ethics isincorrect?

A)Ethics judgments are based on a standard of moral behavior as to right and wrong.
B)Ethical behavior is not viewed the same by all cultures.
C)Ethical judgments are objective rather than subjective.
D)Reasonable people have difficulty agreeing as to where the line should be drawn between ethical and unethical acts.

Question 27

Which statement concerning the Presidential Decree for the Development and Operation of the Maquiladora Industry Program of 1983 is incorrect?

A)It is an international program that allows the duty-free import of equipment,machinery,and materials to assemble parts of products that are then returned to the home country.
B)U.S.Tariff Code allows the final product to be brought into the United States with only the final value added to the goods being taxed.
C)Pacific Rim and European countries are also taking advantage of the maquiladora program.
D)The maquiladora program is governed by common law.

Question 28

Which of the following Acts is an example of extraterritoriality?

A)Trading with the Enemy Act
B)Doctrine of Sovereign Compliance
C)Maquiladoras
D)Act of State Doctrine

Question 29

Which of the following recognizes the intellectual property licensing of copyrights by all the signatory nations to the act?

A)The Madrid Convention
B)The Export Administration Act of 1985
C)The Berne Convention Implementation Act of 1988
D)The International Emergency Economic Powers Act of 1977

Question 30

Which statement regarding nonwritten law is incorrect?

A)Countries interpret laws differently.
B)In low-context cultures what is written is considered flexible,and what is oral is considered binding.
C)Japan is an example of a high-context culture.
D)In all cultures,the interpretation of the situation is less important than external rules and regulations.

Question 31

Which of the following is not covered by the U.S.Department of Commerce's 1993 booklet,International Business Practices,concerning distributor agreements?

A)If possible,state the jurisdiction that will handle disagreements.
B)What is legal in the United States may not be legal in another country.
C)Benefits to both parties should be stated.
D)The agreement can be either oral or written.

Question 32

The four motivations for unethical conduct are

A)consumers,profit,justice,and guidance.
B)profit,consumers,advertising,and competition.
C)profit,competition,justice,and advertising.
D)consumers,advertising,competition,and profit.

Question 33

Firms would choose Bilateral Governance because they want

A)an arbitrator.
B)only one party to set terms for both parties to follow.
C)a strong recognition of a continuing economic relationship.
D)a strong contract.