Question 1

Wrugged Woolens, Inc., a U.S. corporation, sets up a specialized marketing organization in Scotland by appointing a foreign agent. This is called

Accepted Answer

Indirect exporting is a method of international marketing in which a company uses intermediaries or foreign agents to sell their products or services to customers in another country. In this scenario, Wrugged Woolens, Inc. is appointing a foreign agent in Scotland to market their products, which qualifies as indirect exporting.

Question 2

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by

Accepted Answer

The answer of Sudan seizes the assets of Triage Medical,...

Question 3

U.S. Cars, a U.S. firm, owns property in Argentina. The government of Argentina seizes the property. U.S. Cars claims that this is confiscation. The government of Argentina claims that it is expropriation. The burden of proof lies with

Accepted Answer

The answer of U.S. Cars, a U.S. firm, owns property...

Question 4

To obtain a contract with the Chinese government, Bammo Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

Accepted Answer

This scenario may violate the Foreign Corrupt Practices Act (FCPA), which prohibits offering or giving anything of value to a foreign official in exchange for a business advantage. Giving a sport utility vehicle to a Chinese official to obtain a contract would be considered bribery under the FCPA. The act of state doctrine and doctrine of sovereign immunity are not relevant in this scenario, and the principle of comity pertains to the deference that one country shows to the laws and judicial decisions of another country.

Question 5

Senator Brown and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries. To restrict or encourage exports, Congress can

Accepted Answer

To restrict exports of technologically advanced products and data, the best option for Congress would be to set export quotas. This would limit the amount of certain products and data that could be exported and therefore restrict their flow to other countries. Antidumping duties and export taxes would increase the cost of exporting, but would not necessarily restrict the volume of exports. Doing nothing would not address the issue at all.

Question 6

Metallic Metals, Inc., a U.S. firm, files a suit against a Venezuela government agency. The agency has committed a tort in the United States. Under the Foreign Sovereign Immunities Act

Accepted Answer

The Foreign Sovereign Immunities Act allows U.S. courts to exercise jurisdiction over foreign states in certain circumstances, such as when the foreign state has committed a tort in the United States. Therefore, the Venezuelan government agency is not immune from the jurisdiction of the U.S. courts and Metallic Metals can bring a suit against them.

Question 7

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Accepted Answer

The situation described is an example of expropriation, which is the government's seizure of private property for a public purpose, with compensation paid to the owner. Confiscation refers to the government's seizure of property without compensation, while defalcation and dumping are not relevant to this scenario.

Question 8

The United States taxes each barrel of imported oil at a flat rate. This is

Accepted Answer

This tax on imported oil is known as a tariff. A tariff is a tax on imported goods and serves as a source of revenue for the government as well as a way to protect domestic industries.

Question 9

WiFi Corporation, a U.S. firm, signs a contract with Bueno Computadores, Ltd., an Argentinean firm, for a shipment and payment for WiFi's goods. This is

Accepted Answer

This is an example of direct exporting, where a firm sells its products directly to a foreign buyer without any intermediaries. In this case, WiFi Corporation is directly shipping its goods to Bueno Computadores, Ltd. in Argentina.

Question 10

The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is

Accepted Answer

The limit set by the Japanese government is a quota, which is a quantitative restriction on imports that sets a maximum limit on the quantity that can be imported. A dumping duty is a tax imposed on imported goods that are sold below their fair market value in the domestic market of the exporting country, while an antidumping duty is a special import tariff imposed to offset the negative impact of unfairly traded imports. A tariff is a tax imposed on imported goods. None of these terms accurately describe the limit set by the Japanese government.

Question 11

Vieux Carré S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of

Accepted Answer

The answer of Vieux Carré S.A., a French firm, imports...

Question 12

The U.S. corporation Fun Toys, Inc. sets up a firm in China. The parent company remains in the United States and retains complete ownership of the China branch as well as complete authority and control over all phases of the operation. This is

Accepted Answer

The scenario describes a wholly owned subsidiary, where the parent company retains complete ownership and control over the foreign branch.

Question 13

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

Accepted Answer

This is a distribution agreement as Optima Medico Corporation is granting Pharma Beneficial, Ltd. the right to distribute and sell their products in Canada.

Question 14

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns

Accepted Answer

In a joint venture, both parties own a part of the operation and share the profits and liabilities. Therefore, Secure Investments, Inc. would own a portion of the joint venture, along with their partner, and both parties would share in the profits and liabilities.

Question 15

KO Marketing Company, a U.S. firm, signs a contract with Librador Corporacion, a Chilean firm, to give Librador the right to use Innovative's animation techniques and characters in product promotions. This is

Accepted Answer

The contract between KO Marketing Company and Librador Corporacion is a licensing agreement, as it grants Librador the right to use Innovative's animation techniques and characters in their own product promotions.

Question 16

The United States and other members of a certain organization agree to grant normal trade relations status to each other with regard to im?ports and exports. This organi?zation is

Accepted Answer

Normal trade relations status (NTR) is a status granted by one country to another if it is a member of the World Trade Organization. Therefore, the organization referred to in the question is the World Trade Organization (WTO).

Question 17

Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a contract that specifies that the official language of the contract is English. This is

Accepted Answer

The clause that specifies that the official language of the contract is English is a choice-of-language clause, which designates the language that will be used to interpret the terms of the contract. Choice-of-forum clauses specify the jurisdiction or court in which disputes between the parties will be resolved, while choice-of-law clauses determine which country's laws will govern the contract. An arbitration clause establishes that disputes between the parties will be resolved through arbitration rather than litigation in court.

Question 18

UniOil, a U.S. firm, owns property in Venezuela. When the government of Venezuela seizes the property, UniOil asks a U.S. court to order the property's return. The court rules that Venezuela is exempt from the court's jurisdiction. This is

Accepted Answer

The doctrine of sovereign immunity is a legal principle that grants immunity to foreign states from the jurisdiction of courts in another country. This means that UniOil cannot sue the government of Venezuela in a U.S. court without its consent. This is not a travesty of justice, but rather a fundamental aspect of international law. The act of state doctrine and the principle of comity are related but not directly applicable to this scenario.

Question 19

In some cases, foreign states are not immune from the jurisdiction of U.S. courts. These circumstances are governed by the

Accepted Answer

Foreign states are not immune from the jurisdiction of U.S. courts in certain circumstances, and these circumstances are governed by the Foreign Sovereign Immunities Act (FSIA). The FSIA outlines when foreign states may be subject to suit in U.S. courts, such as when they engage in commercial activity in the U.S. or waive their immunity.

Question 20

Soleful Shoes, Inc. owns property in Somalia. The Somalian government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Somalian government must

Accepted Answer

For the seizure to be considered an expropriation, the government must provide just compensation to the owner. This means that the government must provide fair market value for the property being seized. Giving notice or notifying other governments is not a requirement for the seizure to be considered an expropriation.

Quiz 25: International Law in a Global Economy