BUS 404 Final - Chapter 16 Stern

Which of the following is a legally separate entity formed under the laws of the host country and substantially owned by the foreign parent company? A. A subsidiary B. A branch office C. A joint venture D. A distributorship

A) A subsidiary

The _____ and the Universal Copyright Convention (UCC) both provide a measure of international protection against the unauthorized reproduction of books, photos, drawings, movies, and the like. A. Berne Convention B. Paris Convention C. Tariff Act D. Clayton Act

A) Berne Convention

The _____ is the United States' largest trading partner, and vice versa. a. European Union b. African Union c. United Arab Emirates d. United Kingdom

A) European Union

Which of the following are firms that specialize in acting as the intermediary between a domestic business and purchasers in foreign countries, where the firm will take title to the goods being sold and then complete the sale in the foreign country? A. Export trading companies B. Export management companies C. Exclusive dealing companies D. Export intermediary companies

A) Export trading companies

The North American Free Trade Agreement exists among the United States, Canada and _____. a. Mexico b. Brazil C. Cube D. Guatemala

A) Mexico

_____ generally refers to the contracting by U.S. companies of such services as call centers, accounting, and customer services to foreign companies located in low-wage markets. A. Outsourcing B. Featherbedding C. Offshoring D. Dumping

A) Outsourcing

Which act makes it unlawful to import goods bearing a trademark that has been registered with the Patent and Trademark Office and that is "owned by a citizen of, or by a corporation or association . . . organized within the United States" without the permission of the mark holder? A. The Tariff Act B. The Wheeler-Lea Act C. The Clayton Act D. The Uniform Adoption Act

A) The Tariff Act

The _____ permits restrictions on goods and technology where selling goods to other countries would harm national security, significantly advance U.S. foreign policy, prevent an excessive drain of scarce materials, or reduce serious inflationary impacts from foreign demand. A. U.S. Export Administration Act B. Foreign Country Subsidy Act C. General Agreement on Tariffs and Trade D. Free Trade Act

A) U.S. Export Administration Act

Developing countries typically have a comparative competitive advantage over developed countries in _____. a. cheap labor b. an educated workforce c. manufacturing infrastructure and expertise d. a special zone of particulary well-developed industries

A) cheap labor

A _____ is a monopoly on a product, process, or device where the item or process claimed is an innovation, unique and inventive, and useful. A. patent B. trademark C. copyright D. trade secret

A) patent

47. A Canadian court may not declare invalid the acts of the Chinese government taken within China's own jurisdiction because it is presumed that the foreign country, China, acted legally within its own territory. This is an example of which of the following doctrines? A. The act of state doctrine B. The doctrine of sovereign immunity C. The vesting of rights doctrine D. The governmental interest doctrine

A. The act of state doctrine

_____ is the concept that countries should abide by international custom, treaties, and other sources of international direction because that is the civil way to engage in relationships. A. Alluvion B. Comity C. Ordinance D. Convention

B) Comity

The Transatlantic Trade and Investment Partnership is a proposed trade agreement between the United States and _____. a. the African Union b. the European Union c. Australia d. China

B) the European Union

In an international transaction between parties in two countries where the parties have not specified the law to be applied to the contract, the applicable law will depend on _____. A. the buyer's place of business B. the country in which the court is located C. the special international law statute D. the place where the goods are used

B) the country in which the court is located

A _____ distinguishes the source of a particular good or service, whether that is accomplished by a commercial name, packaging, logo, or other distinguishing feature. A. patent B. trademark C. copyright D. trade secret

B) trademark

Which of the following is true of existing international dispute resolution bodies? A. National courts hear cases on matters of international public law. B. The International Court of Justice exercises both advisory and contentious jurisdiction. C. The European Court of Justice hears cases involving only the European community settled in the United States. D. The World Trade Organization Dispute Settlement Body is a true court.

B. The International Court of Justice exercises both advisory and contentious jurisdiction.

A _____ is simply an extension of a foreign corporation into the host country. a. joint venture b. distributorship c. branch office d. foreign agency

C) Branch office

Zyton Inc., an American company, wants to expand its services to a developing country in Asia. Instead of creating a separate legal entity, it simply wants to create an extension of the parent company in the Asian country. In this scenario, Zyton Inc. is most likely to set up a _____ in that country. a. joint venture b. distributorship c. branch office d. subsidiary

C) Branch office

Which of the following countries is one of the major emerging economies? A. Zimbabwe b. Ukraine c. Brazil d. Argentina

C) Brazil

Which of the following is permitted by the World Trade Organization? A. Payment of unfair subsidies by government B. Dumping C. Countervailing duties D. Trade of contraband substances

C) Countervailing duties

_____ occurs when a manufacturer sells its products in a foreign country for less than their normal value. A. Expropriation B. Intrusion C. Dumping D. Depositing

C) Dumping

In international trade, which of the following doctrines applies the law of the jurisdiction that has the greatest interest in the issue's outcome? a. the most significant relationship doctrine b. the vesting of rights doctrine c. the sovereign immunity doctrine d. the governmental interest doctrine

D) The governmental interest doctrine.

When determining international public law, a _____ is derived from consistent behavior over time that is accepted as binding by the countries that engage in that behavior. A. clause B. comity C. treaty D. custom

D) custom

A fundamental principle set forth in the preamble to the 1994 Marrakesh Agreement is that "substantial reduction of tariffs and other barriers to trade" will contribute to the objective of "raising standards of living."

True

Countries that impose regulatory requirements on multinational enterprises may, in any given circumstance, be viewed with approval or be accused of "regulatory imperialism" or be charged with domestic protectionism.

True

The General Agreement on Tariffs and Trade is now governed by the World Trade Organization.

True

The concept that a court in one country has no authority to challenge the domestic acts of another country's government is called the act of state doctrine.

True

The doctrine of sovereign immunity is based on the concept that "the king can do no wrong."

True

Article 2 of the Uniform Commercial Code (UCC) regulates the sale of goods generally as well as sales between merchants.

True.

Distributors purchase goods from a seller, then negotiate sales to foreign buyers on their own behalf.

True.

The Foreign Sovereign Immunities Act of 1976 (FSIA) provides that foreign countries may not be sued in American courts, subject to several exceptions.

True.

The U.S. Export Administration Act of 1979 permits restrictions on goods and technology where exportation would harm national security.

True.

The World Trade Organization was established by the 1994 Marrakesh Agreement.

True.

Which of the following is true of the General Agreement on Trade in Services (GA TS)? A. It is a fully developed agreement that regulates all kinds of international trade. B. It is not mandatory for all member countries of the World Trade Organization to subscribe to GATS. C. It sets forth the general principles for the future of trade in services across borders. D. It sets the stage for future negotiations to increase barriers to trade in services.

C) It sets forth the general principles for the future of trade in services across borders.

The establishment of _____ is evidence of voluntary international cooperation to establish acceptable business practices. a. September 21 as International Day of Peach b. June 5 as World Environment Day c. October 14 as World Standards Day d. May 1 as International Workers' Day

C) OCtober 14th as World Standards Day

Which of the following is true of Islamic countries? a. their cultures are more homogeneous than that of Western countries b. there is a clear separation of religion and state in these countries c. religion is the basis for many legal, as well as ethical, standards in these countries d. trade and commerce with Western countries is usually prohibited in these countries

C) Religon is the basis for many legal, as well as ethical, standards in these countries.

Which of the following statements about the General Agreement on Tariffs and Trade (GATT) is true? A. In practice, it has done away with nonconforming tariffs. B. Under GATT, countries are prohibited from implementing the concept of national treatment. C. Under GATT, once a good has been imported, it must be treated just as domestic goods are treated. D. It discourages offering the same reduced tariff to all World Trade Organization members.

C) Under GATT, once a good has been imported, it must be treated just as domestic goods are treated.

Which of the following statements is true of the International Court of Justice? A. It is a court that issues only advisory opinions that bind the parties. B. It is no longer active since international trade agreements and treaties resolve most of the disputes it used to decide. C. It is the only court that is devoted entirely to hearing cases of international public law. D. It is made up of any number of judges from the U.S.

C. It is the only court that is devoted entirely to hearing cases of international public law.

Arbitration is never used in international trade disputes.

False

The International Court of Justice is only made up of judges from the United States.

False

The World Trade Organization Dispute Settlement Body (DSB) is a true court.

False

A licensing agreement is made up of a number of franchisee agreements.

False.

Generally, when a subsidiary is sued, the parent company is also liable.

False.

Member countries in the World Trade Organization represent only capitalist governments.

False.

Standards for appropriate speech are regulated only by societal norms.

False.

Title VII of the Civil Rights Act only affects companies doing business within the U.S. and cannot be used to restrain the business activities of U.S. companies doing business outside of the U.S.

False.

To promote fair trade, the World Trade Organization encourages the practice of dumping.

False.