Question 1

A transnational institution's purpose is to:

Accepted Answer

A transnational institution's primary purpose is to maintain legal and economic order in trade. This includes ensuring that there are no unjust trade practices, monitoring and regulating currency exchange rates, and enforcing international trade agreements. Maintaining a stable environment for the economies and currencies is a significant part of maintaining legal and economic order in trade. The other choices, although important, are secondary to ensuring legal and economic order in trade.

Question 2

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:

Accepted Answer

The answer of Trade among nations remains a vital ingredient...

Question 3

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

Accepted Answer

A trademark is a sign, symbol or logo that identifies a product or service offered by a business. It distinguishes the product from others in the market and helps build brand recognition and customer loyalty. Copyright, patent and sign are not specifically related to identifying products, though they may have other business uses.

Question 4

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

Accepted Answer

The protection of literary, artistic or musical works and computer programs is achieved through copyrights. Patents protect inventions, trademarks protect signs, and embargoes are a restriction on trade between certain countries.

Question 5

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:

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) is a federal statute that prohibits American companies and their executives from bribing foreign officials or engaging in other corrupt practices to expedite business activities in foreign countries. The FCPA was enacted to promote integrity, transparency, and fair competition in international business transactions.

Question 6

The monetary currency of the European Union is the:

Accepted Answer

The euro is the official currency of the European Union, adopted by 19 of its 27 member states.

Question 7

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

Accepted Answer

The World Intellectual Property Organization (WIPO) is the specialized agency of the United Nations responsible for promoting the protection of intellectual property rights worldwide. WIPO administers numerous treaties, including the Patent Cooperation Treaty, the Madrid System for the International Registration of Trademarks, and the Berne Convention for the Protection of Literary and Artistic Works. Its headquarters are in Geneva, Switzerland.

Question 8

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:

Accepted Answer

The action described in the question is a boycott, which is a voluntary refusal to purchase goods or services from a particular entity or country. Confiscation refers to the seizure of property by a government or other authority, domestication is the process of acclimating wild animals to human environments, and localization refers to the process of adapting a product or service to meet the specific needs of a local market.

Question 9

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:

Accepted Answer

Domestication is the process where a host country mandates that foreign companies sell a portion of their ownership to local entities as a condition for operating within the country. This is aimed at ensuring local involvement and benefits from foreign investments.

Question 10

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:

Accepted Answer

This describes a patent, which is a legal protection granted to inventors for a fixed period of time, typically 20 years, to give them the exclusive right to make, use, and sell their invention. Copyright applies to original works of authorship (such as books, music, and art), while trademarks are used to protect names, logos, and other distinct symbols associated with a particular brand. "Grant" is not a relevant term in this context.

Question 11

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

Accepted Answer

The FCPA prohibits corrupt payments made to foreign officials to obtain or retain business. It is not limited to payments made in cash or in the US, and it does not require that the payment be for the sale of goods. The key factor is that the payment must be made corruptly, i.e. with the intention of improperly influencing the recipient.

Question 12

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

Accepted Answer

The International Monetary Fund (IMF) is responsible for maintaining stability in the international monetary system. It provides policy advice, financial assistance, and monitors economic and financial developments of its member countries to ensure the stability of their currencies and economies. The World Trade Organization (WTO) is responsible for promoting free trade and resolving trade disputes between its member countries. The General Agreement on Tariffs and Trade (GATT) was a predecessor to the WTO and focused on reducing trade barriers. The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada and Mexico, and does not have a mandate to maintain currency or economic stability.

Question 13

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

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was established in 1947 as an international agreement to reduce trade barriers and promote free trade among member countries. It was replaced by the World Trade Organization (WTO) in 1995. The North American Free Trade Agreement (NAFTA) and the International Monetary Fund (IMF) Agreement were established in 1994 and 1944, respectively, and were not in effect in 1947.

Question 14

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:

Accepted Answer

This is the definition of expropriation, where a foreign company's assets are seized by the host country with compensation given to the owners of the company. Capitalization refers to the process of raising funds or increasing the capital of a company, while an embargo is a government-imposed ban on trade with a particular country. Domestication refers to the process of adapting to local customs and practices.

Question 15

Intellectual property includes: .

Accepted Answer

Intellectual property includes trademarks, copyrights and patents.

Question 16

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

Accepted Answer

The World Bank was established in 1944 to provide financial and technical assistance to countries for development projects, including post-war reconstruction.

Question 17

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

Accepted Answer

The term "Euroland" is often used to refer to the countries in the European Union that have adopted the euro as their common currency. In 1994, 12 countries signed the Treaty on European Union, which laid the groundwork for the creation of the euro and established the framework for the EU as we know it today. While the EU has expanded since then to include more member states, the original 12 are often referred to as the "founder members" of the EU. Therefore, B) Euroland is the best choice for this question.

Question 18

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

Accepted Answer

Trade sanctions are generally used to limit trade with specific countries as a form of punishment or pressure. Embargoes are a specific type of trade sanction that involve a complete ban on all trade with a specific country. Therefore, A) embargoes are the correct choice for this question. Choices B) churnings and D) tariffs are not appropriate as they do not refer to the restriction of trade with specific countries. Choice C) boycott can be considered as a trade sanction but it is not as specific as embargoes.

Question 19

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

Accepted Answer

Tariffs are taxes imposed on imported goods, which make them more expensive and encourage people to buy domestically-produced goods. This protects domestic industries and can also increase revenue for the government. Embargoes and trade sanctions involve restricting or cutting off trade completely, while a boycott involves a voluntary refusal to buy or support certain products or companies.

Question 20

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:

Accepted Answer

The World Trade Organization (WTO) is the international organization that oversees the implementation of all multinational trade agreements negotiated now or in the future. Its mandate includes promoting free trade and resolving trade disputes between member nations. The other options listed are either regional organizations (NAFTA) or focus on specific areas (GATT on tariffs and IMF on international monetary cooperation).

Quiz 35: International Business Law