Deck 35: International Business Law

Question 1

In modern times, customary practices and treaties are the major sources of international law which are recognized in the Statute of the International Court of Justice.

Answer 1

True

Question 2

In 1977, the United States passed the Foreign Corrupt Practices Act (FCPA), which is a federal statute designed to provide executives of American companies with rules and restrictions relating to paying persons in foreign countries to expedite business in these foreign nations.

Answer 2

True

Question 3

Copyrights are a statutory privilege granted by a nation to inventors for a fixed period of years to exclude all others from manufacturing, using, or selling a patented product without permission from the inventor.

Answer 3

False

Question 4

In order to promote trade, the United States, Canada, and Mexico have agreed to follow the rules of the North American Free Trade Agreement.

Question 5

International law includes the study of organizations that regulate personal and commercial activity and facilitate international trade.

Question 6

In modern times, customary practices and treaties are the major sources of international law and these are recognized in the:
A. Statute of the European Court of Justice.
B. Statute of the International Court of Justice.
C. International Labour Organization.
D. Supreme Court of the United States.

Question 7

The World Trade Organization (WTO) is responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future.

Question 8

______________ is the broad study of the legal systems of major countries, treaties, practices, tariffs and nontariff trade barriers, and import and export quotas.

A) International law
B) Domestic Law
C) Foreign law
D) Federal law

Question 9

In 1994, 12 countries in Europe formed what is expected to eventually become "Greenland," an economic and political integration of the members into the United Nations.

Question 10

Companies that conduct business in several countries face the challenge of having to comply with a variety of legal systems that sometimes conflict with one another.

Question 11

The World Bank works closely with the International Monetary Fund to ensure that developing countries have access to funds in order to stimulate their economies.

Question 12

A transnational institution's purpose is overseeing the implementation of all multinational trade agreements negotiated now or in the future.

Question 13

The use of English as the language of international business is on the decline due to cultural differences, disparate legal systems, and fluctuating exchange rates.

Question 14

In addition to trade sanctions and embargoes, at times a country will impose a tariff on imports or exports to attain economic results.

Question 15

Domestication occurs when the host country takes title to all of the assets of the foreign company.

Question 16

Confiscation involves the host country's purchasing the assets of a foreign company. .

Question 17

The increasing volume of international trade and tourism, the globalization of the marketplace, the growing incidence of multinational business organizations, and cultural exchanges have given rise to the need for:

A) domestic law.
B) foreign law.
C) trade union law.
D) international law.

Question 18

The philosophy of Roman international law controlling trade and commerce in a peaceful way came to be known as:

A) Max Roman.
B) Romana law.
C) Pax Romana.
D) Roman Philosophy.

Question 19

The principle of law that holds that the courts of one country should refrain from deciding cases involving the acts of persons from another country, is known as the doctrine of:

A) comity.
B) jurisdiction.
C) res judicata.
D) estoppel.

Question 20

In some countries outside of the United States, it is perfectly acceptable that there will be payments made to individuals in order to secure their business.

Question 21

A transnational institution's purpose is to:

A) maintain legal and economic order in trade.
B) provide a set of rules to ensure that there is no trade discrimination
C) oversee the implementation of all multinational trade agreements
D) maintain a stable environment for the economies and currencies

Question 22

Trade among nations remains a vital ingredient to the economic health of the world's population. While countries are sovereign and create and interpret their own sets of laws, the goal is that trade be governed by:

A) nongovernmental organizations.
B) international organizations.
C) trade unions.
D) transnational institutions.

Question 23

A _______________ is a valuable tool used by a business to identify its products.

A) copyright
B) trademark
C) patent
D) sign

Question 24

The work of authors or creators of literary, artistic, or musical works and computer programs are protected by:

A) patents.
B) copyrights.
C) trademarks.
D) embargoes.

Question 25

A federal statute designed to provide executives of American companies with rules and restrictions relating to paying persons in foreign countries to expedite business in these foreign nations is the:

A) Civil Rights Act.
B) Trade Union Act.
C) Intellectual Property and Real Act.
D) Foreign Corrupt Practices Act.

Question 26

The monetary currency of the European Union is the:

A) pound.
B) dollar.
C) krone.
D) euro.

Question 27

The ____________ is a specialized agency of the United Nations and an international organization that administers numerous treaties concerning protection of intellectual property rights.

A) World Bank
B) International Monetary Fund
C) World Trade Organization
D) World Intellectual Property Organization

Question 28

At times, citizens of a particular country refuse to purchase goods made by businesses located in other countries. This action, whether supported by the government or not, is referred to as a:

A) confiscation.
B) boycott.
C) domestication.
D) localization.

Question 29

When the host country mandates that at least partial ownership of the foreign company be sold to local citizens or companies prior to the foreign company's conducting business within the host country's borders, then:

A) domestication occurs.
B) expropriation occurs.
C) confiscation occurs.
D) localization occurs.

Question 30

A statutory privilege granted by a nation to inventors for a fixed period of years to exclude all others from manufacturing, using, or selling a product without permission from the inventor is a:

A) copyright.
B) trademark.
C) patent.
D) grant.

Question 31

The Foreign Corrupt Practices Act (FCPA) makes it clear that in order to violate the law the payment must be made:

A) in cash
B) for the sale of goods.
C) corruptly
D) in the U.S.

Question 32

The organization with responsibility to maintain a stable environment for the economies and the currencies of its members is the:

A) World Trade Organization.
B) International Monetary Fund.
C) General Agreement on Tariffs and Trade.
D) North American Free Trade Agreement.

Question 33

In 1947, an international agreement entered into by a multitude of nations was called the:

A) North American Free Trade Agreement.
B) World Trade Organization.
C) General Agreement on Tariffs and Trade.
D) International Monetary Fund Agreement.

Question 34

The act of a host country in taking title to all of the assets of a foreign company while compensating the owners of the foreign company for the taking is called:

A) capitalization.
B) an embargo.
C) domestication.
D) expropriation.

Question 35

Intellectual property includes: .

A) patents and copyrights but not trademarks
B) patents and trademarks but not copyrights
C) trademarks and copyrights but not patents.
D) trademarks, copyrights and patents.

Question 36

The organization created in 1944 to provide relief to countries suffering from the ravages of World War II was the:

A) World Bank.
B) International Monetary Fund.
C) World Trade Organization.
D) General Agreement on Tariffs and Trade.

Question 37

In 1994, 12 countries in Europe formed an economic and political integration of the members into one entity which is expected to eventually become:

A) Greenland.
B) Euroland.
C) United Europe.
D) Trans-Europe.

Question 38

Countries that enact laws prohibiting trade with specific countries are said to be using trade sanctions, sometimes referred to as:

A) embargoes.
B) churnings.
C) boycott.
D) tariffs.

Question 39

To attain economic results, such as protecting domestic industries or facilitating the production of certain crops, at times a country will impose a(n):

A) embargo.
B) tariff.
C) boycott.
D) trade sanction

Question 40

The commission or organization that is responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future is known as the:

A) North American Free Trade Organization.
B) World Trade Organization.
C) General Agreement on Tariffs and Trade.
D) International Monetary Fund.

Question 41

In general, what is the attitude of business executives toward the Foreign Corrupt Practices Act?

Question 42

Describe copyrights, patents and trademarks. .

Question 43

What is the Doctrine of Comity?