Question 1

Nations impose laws to restrict or facilitate international business because business activities can affect national interests.

Accepted Answer

Nations impose laws to protect their economy, environment, and social well-being from the negative impact of international business. Additionally, governments may also facilitate international business to promote economic growth and create job opportunities. The regulation of international business activities is also important to prevent unfair trade practices that can harm national interests. Overall, the imposition of laws and regulations is a way for nations to ensure that international business activities align with their priorities and interests.

Question 2

When a foreign country represents a substantial market for a U.S.manufacturer,the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

Accepted Answer

When a foreign country represents a substantial market for a U.S. manufacturer, the firm may enter into an agreement for the distribution of its products in that market by a foreign distributor.

Question 3

A U.S.court can assert jurisdiction over a foreign government in a case involving the control of natural resources within that government's territory.

Accepted Answer

Under the principle of sovereign immunity, a U.S. court generally cannot assert jurisdiction over a foreign government in matters that pertain to the sovereign acts of that government, such as the control of natural resources within its own territory.

Question 4

In a case alleging that a foreign government wrongfully confiscated a domestic firm's property,the foreign government must prove the taking was an expropriation.

Accepted Answer

The answer of In a case alleging that a foreign...

Question 5

In direct exporting,a U.S.company sets up a specialized marketing organization in a foreign market by appointing a foreign agent.

Accepted Answer

In direct exporting, a U.S. company sells its products directly to buyers in a foreign market without necessarily setting up a specialized marketing organization there; appointing a foreign agent is a form of indirect exporting.

Question 6

Under the principle of comity,a domestic court will not examine the validity of any act committed by a foreign government within the court's jurisdiction.

Accepted Answer

Under the principle of comity, a domestic court will generally give respect to the laws and actions of foreign governments, but it is not an absolute prohibition on examining their validity. In certain circumstances, such as when the act would violate fundamental principles of justice, a domestic court may choose to examine the validity of a foreign act.

Question 7

Sovereign nations agree to be governed by international law to facilitate trade,commerce,and civilized discourse.

Accepted Answer

Sovereign nations do agree to be governed by international law to facilitate various aspects including trade, commerce, and civilized discourse. This is done to ensure peaceful relationships and cooperation among nations.

Question 8

The parties to an international contract can indicate what court,jurisdiction,or tribunal will decide any disputes arising under the contract.

Accepted Answer

It is common practice to include a choice of forum or jurisdiction clause in international contracts to specify where any disputes will be resolved.

Question 9

A business firm is subject only to the laws of its home nation even when it maintains operations or otherwise does business in other nations.

Accepted Answer

This statement is false. A business firm must also follow the laws and regulations of the countries in which it operates. Failure to do so can result in legal action, fines, and damage to the firm's reputation.

Question 10

International law is formed as result of international customs,treaties,agreements,and organizations.

Accepted Answer

International law is indeed formed as a result of international customs, treaties, agreements, and organizations. These sources of law help to establish the legal framework that governs relationships and interactions between sovereign states in the international community.

Question 11

In an action by a domestic business to attach a foreign nation's property,the plaintiff must prove that the defendant is not entitled to sovereign immunity.

Accepted Answer

This is true. The principle of sovereign immunity grants immunity to foreign nations from being sued in courts of other countries. However, there are exceptions to this principle, such as when a foreign nation engages in commercial activity in a country or when it waives its sovereign immunity. In such cases, the plaintiff can bring an action to attach the foreign nation's property, but must prove that the defendant is not entitled to sovereign immunity.

Question 12

Goods made by a U.S.business firm in a foreign manufacturing plant are not subject to taxes when the goods are imported into the United States.

Accepted Answer

Goods made by a U.S. business firm in a foreign manufacturing plant are subject to taxes when the goods are imported into the United States. These taxes are known as tariffs or customs duties, and they can vary depending on the type of product and the country of origin.

Question 13

A foreign state is immune from the jurisdiction of a U.S.court when the state has engaged in commercial activity only outside the United States.

Accepted Answer

A foreign state is not immune from the jurisdiction of a U.S. court when it engages in commercial activity in the United States, regardless of whether it also engages in commercial activity outside of the United States. However, foreign states may be immune from jurisdiction in certain circumstances, such as when they engage in government or military activity.

Question 14

A company can export indirectly and thereby limit its involvement in an international market by making use of agency relationships.

Accepted Answer

When a company exports indirectly, it makes use of intermediary agents who act as middlemen between the company and the foreign market. This limits the company's involvement in the international market as the intermediary is responsible for handling tasks such as transportation, distribution, and marketing.

Question 15

By means of an arbitration clause,the parties to an international business contract agree in advance to resolve any dispute without involving a third party.

Accepted Answer

An arbitration clause in an international business contract does indeed involve a third party, the arbitrator or arbitration panel, to resolve disputes rather than resolving them through traditional court litigation.

Question 16

A foreign state is not immune from the jurisdiction of a U.S.court when it has engaged in commercial activity within the United States.

Accepted Answer

This is based on the Foreign Sovereign Immunities Act, which outlines exceptions to a foreign state's immunity from U.S. court jurisdiction, including when the foreign state engages in commercial activity within the United States.

Question 17

When a wholly owned subsidiary is established in a foreign country,the parent company,which remains in the United States,gives up ownership,authority,and control over all phases of the operation in the foreign country.

Accepted Answer

A wholly owned subsidiary means that the parent company owns 100% of the subsidiary, therefore it still maintains ownership, authority, and control over all phases of the operation in the foreign country.

Question 18

When a foreign government acts as a "private party" in the market,its actions qualify as commercial activity for purposes of the Foreign Sovereign Immunities Act.

Accepted Answer

This is true according to the Foreign Sovereign Immunities Act. When a foreign government engages in commercial activity, it is not protected by sovereign immunity and can be subject to legal action in the United States.

Question 19

Under the act of state doctrine,a U.S.court can rule on the validity of a foreign government's acts within its own territory.

Accepted Answer

Under the act of state doctrine, a U.S. court generally will not question the validity of a foreign government's acts within its own territory.

Question 20

A U.S.court will likely uphold a contract created in the United Kingdom because the U.K.'s laws are generally compatible with those of the United States.

Accepted Answer

This statement is generally true as the U.K. has a well-developed legal system and laws that are based on common law principles similar to those in the United States. However, the outcome of a specific case would depend on various factors, such as the specific terms of the contract and applicable laws in the particular jurisdiction.

Quiz 7: International and Space Law