Question 1

Skye Pye Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Skye Pye empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Skye Pye's behalf. This is​

Accepted Answer

By empowering Alem, Ltd. to enter into contracts on its behalf, Skye Pye is creating an agency relationship where Alem will act as an agent for Skye Pye in those specific countries.

Question 2

Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is​

Accepted Answer

Dumping refers to the practice of exporting goods at a price that is lower than the price charged for similar goods in the domestic market of the exporting country or lower than the cost of production. Hong Ltd. is selling its goods at less than fair value, indicating that it may be engaging in dumping. Confiscation, defalcation, and expropriation are not related to this scenario.

Question 3

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over​

Accepted Answer

When Business Universal establishes a wholly owned subsidiary in Brazil, it means that they have complete ownership and control over the subsidiary and its operations. Therefore, the correct answer is A, as they retain complete control and authority over all of the operations.

Question 4

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

Accepted Answer

The answer of AgriWorld, a U.S. firm, owns property in...

Question 5

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

Accepted Answer

The United States taxes each barrel of imported oil at a flat rate, which is known as a tariff. A tariff is a tax on imported goods, designed to make foreign products more expensive and less attractive to consumers, while at the same time promoting domestic production and consumption.

Question 6

Mont Blanc 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 Mont Blanc's goods in​

Accepted Answer

The answer of Mont Blanc S.A., a French firm, imports...

Question 7

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 is giving Pharma the right to sell its products in a specific geographic region.

Question 8

Munchies Bistro Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use Munchies's trademark in restaurants in France. This is​

Accepted Answer

This is a licensing agreement because Munchies Bistro Corporation is giving Manger au Brasserie, S.A. the right to use their trademark in exchange for a fee or royalties.

Question 9

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

Expropriation refers to the seizure of property by a government with compensation paid to the owner. Confiscation, on the other hand, refers to the seizure without compensation, making it an incorrect choice. Defalcation refers to the misappropriation of funds, which is not relevant to the scenario in the question. Dumping refers to the practice of selling goods in another country at a lower price than in the home country, which is also irrelevant to the scenario.

Question 10

International Media, Inc., a U.S. firm, expands into global markets through a joint venture. In the venture, International Media shares responsibilities and​

Accepted Answer

In a joint venture, both parties share responsibilities and risks, including profits and liabilities. Therefore, Choice A is the correct answer.

Question 11

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

Accepted Answer

A quota is a limit on the quantity or value of goods that can be imported or exported within a specified time period. In this scenario, the government of Japan has set a limit on the amount of rice that can be imported from the United States, which is a quota. A dumping duty is a tax or tariff imposed on goods that are sold on the international market at prices that are below their normal value, while an antidumping duty is a tax or tariff imposed on goods that are suspected of being sold at unfairly low prices. A tariff is a tax imposed on imports or exports.

Question 12

Ecuador seizes the assets of Resourced Oil, Inc., a U.S. firm. Resourced's recovery from Ecuador in a U.S. court may be prevented by​

Accepted Answer

The act of state doctrine holds that a court should not examine the validity of actions taken by a foreign government within its own territory. As Ecuador has seized Resourced Oil, Inc.'s assets, this doctrine may prevent Resourced from recovering their assets in a U.S. court.

Question 13

Without permission, a Russian firm names itself McDonald's and begins selling hamburgers and French fries in Russia. This is​

Accepted Answer

Piracy refers to the unauthorized use of intellectual property belonging to someone else. In this case, the Russian firm is using the name and products of McDonald's without permission, making it an act of piracy.

Question 14

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is​

Accepted Answer

This is a franchise agreement, where Burger Heaven is allowing the Icelandic firm to use their trade name in exchange for a fee.

Question 15

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

WiFi Corporation is engaging in direct exporting by selling their goods to a foreign customer and handling the shipment and payment directly.

Question 16

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is​

Accepted Answer

The scenario described is one of indirect exporting, where Graphic Comix appoints Comicas Graphico to represent them in the Spanish market, but Graphic Comix retains ownership and control of their products. This is not a joint venture, as there is no indication of joint ownership or shared profits. It is also not franchising, as there is no mention of Graphic Comix allowing Comicas Graphico to use their brand name or business model. Licensing is also not the correct answer, as there is no mention of Graphic Comix allowing Comicas Graphico to use their intellectual property in exchange for royalties.

Question 17

Global Holdings, Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Kazakhstan government must​

Accepted Answer

In order for a seizure to be considered an expropriation and not a confiscation, the government must pay just compensation to the owner of the property. Therefore, choice A is the correct answer. The other choices, paying the U.S. government or obtaining the approval of the United Nations, are not relevant in this situation. Acting in full accordance with the laws of Kazakhstan is important, but it is not enough to turn the seizure into an expropriation.

Question 18

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are​

Accepted Answer

Under federal law, U.S. banks are encouraged by credit guaranties to lend funds for export-related activities such as those requested by Northwest Resources and Midwest Commodities.

Question 19

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is​

Accepted Answer

The Foreign Sovereign Immunities Act (FSIA) provides the legal framework for determining whether a foreign state (or one of its agencies) is immune from the jurisdiction of a U.S. court. However, the FSIA also contains exceptions that allow private parties to sue foreign states (or their agencies) in U.S. courts under certain circumstances. One of these exceptions is for cases involving commercial activity that has a sufficient connection to the United States. Since World Metals, Inc. is a U.S. firm and the alleged violation of international law has some connection to the United States, it is likely that the Venezuela government agency would not be immune from the jurisdiction of U.S. courts under the FSIA. Therefore, choice A is the best answer.

Question 20

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

Accepted Answer

The doctrine of sovereign immunity is a legal principle that says a sovereign state is immune from being sued in the courts of another state without its consent. The court ruled that Nicaragua was immune from its jurisdiction, meaning UniOil cannot seek a court order to seize its property back from the government of Nicaragua.

Quiz 16: International Law in a Global Economy

Skye Pye Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Skye Pye empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Skye Pye's behalf. This is​

Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is​

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over​

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

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

Mont Blanc 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 Mont Blanc's goods in​

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​

Munchies Bistro Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use Munchies's trademark in restaurants in France. This is​

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​

International Media, Inc., a U.S. firm, expands into global markets through a joint venture. In the venture, International Media shares responsibilities and​

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

Ecuador seizes the assets of Resourced Oil, Inc., a U.S. firm. Resourced's recovery from Ecuador in a U.S. court may be prevented by​

Without permission, a Russian firm names itself McDonald's and begins selling hamburgers and French fries in Russia. This is​

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is​

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​

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is​

Global Holdings, Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Kazakhstan government must​

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are​

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is​

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

Skye Pye Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Skye Pye empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Skye Pye's behalf. This is

Hong Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is

Business Universal Corporation, a U.S. firm, establishes a wholly owned subsidiary firm in Brazil. In this situation, Business Universal retains complete control and authority over

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

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

Mont Blanc 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 Mont Blanc's goods in

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

Munchies Bistro Corporation, a U.S. firm, signs a contract with Manger au Brasserie, S.A., a French firm, to give Manger the right to use Munchies's trademark in restaurants in France. This is

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

International Media, Inc., a U.S. firm, expands into global markets through a joint venture. In the venture, International Media shares responsibilities and

Ecuador seizes the assets of Resourced Oil, Inc., a U.S. firm. Resourced's recovery from Ecuador in a U.S. court may be prevented by

Without permission, a Russian firm names itself McDonald's and begins selling hamburgers and French fries in Russia. This is

The U.S. corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee. This is

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

Significant business develops in Spain for Graphic Comix, Inc., a U.S. firm. Graphic Comix appoints Comicas Graphico, Ltd., a Spanish firm, to act as Graphic Comix's marketing representative in Spain. This is

Global Holdings, Inc. owns property in Kazakhstan. The Kazakhstan government seizes the property. In order for the seizure to be considered an expropriation and not a confiscation, the Kazakhstan government must

Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are

World Metals, Inc., a U.S. firm, wants to file a suit in the United States against a Venezuela government agency, alleging a violation of certain international laws. Under the Foreign Sovereign Immunities Act, the agency is

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