International Business Law Test #2

__________ are a critical issue to importers and exporters. They offer the sole way to determine the rate of duty or even quotas that might apply to the product being bought or sold.

Rules of origin

__________ includes areas such as law, accounting, travel, insurance, and data processing.

Trade in services

_____________ refers to the ability of the public, particularly foreign firms, to have open access to government rules or private standards that are published and made readily available to foreign firms.

Transparency

The _________ state the original objectives of the EU and launched the process of establishing a customs union.

Treaty of Rome

The German beer purity law was struck down as an artificial and unwarranted barrier to trade. T/F?

True

__________ granting new membership (into the EU) must be ratified by all existing members.

Accession treaties

The WTO _____________ requires fair, open and nondiscriminatory procurement practices and sets up uniform procurement procedures to protect suppliers from different countries.

Agreement on Government Procurement (AGP)

The WTO ___________ establishes rules for international trade in services.

General Agreement on Trade in Services (GATS)

The __________ has original jurisdiction in cases brought by the EU institutions to compel member states to comply with their treaty obligations or by member states against EU institutions alleged to have overstepped their powers under the treaties.

General Court

The purpose of the _________ is to encourage trade with developing countries to aid in their economic growth.

Generalized System of Preferences

Article _______ of the U.S. constitution gives treaty-making power to the president, with Senate consent.

II

The European Parliament is the only EU institution whose members are elected by European citizens. Each member state elects a different number, based on population. Those are elected are called ______________

Members of the European Parliament (MEPs)

There is a convenient __________, an online compilation of prohibited users

consolidated screening list

In a ________, there is free trade in all goods that come through any of the members, even imports form outside those member countries

customs union

A __________ is the communication or other transfer by an American citizen of technology, technical data, software and source code, encryption technology or other controlled information to a foreign national.

deemed export

Product standards in Japan have historically taken the form of _________ standards. U.S. standards, by contrast are usually based on _________ standards.

design, performance

Decisions by the ECJ are issued without any ____________

dissenting opinion

A __________ is the unlawful transfer, transshipment, rerouting or re-exporting of controlled goods or technology from one destination, to which the goods or technology could be shipped, to another destination that has not been lawfully authorized to receive the items.

diversion

The principle of ________ states that WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed.

least restrictive trade

The term _________ refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country.

re-export

A state wishing to join the EU must first reach a ______________ agreement with the EU whereby the potential candidate state is offered free trade incentives in return for commitments to political and economic reform.

stabilization and association

According to the text, NAFTA permits certain action to safeguard a domestic industry. The emergency safeguards under NAFTA are (more or less)? limited than safeguards under GATT/WTO.

more

The WTO has stated that this is the balancing test: nations must weigh the _________ against __________

necessity of protecting the public, restrictions on free trade

One of the major U.S. responses to the terrorists acts of September 11, 2001, was the enactment of the __________

USA Patriot Act

Items controlled by the EAR include what four categories?

1. All U.S.-origin goods and technology, wherever located 2. Certain foreign-made items containing usually more than 25% U.S.-origin controlled content/technology 3. Certain items made in a foreign country with U.S. technology 4. Items made at a plant located outside the U.S. if that plant was designed and built with U.S. technology

The __________________ maintains an online "standards portal" that gives firms access to English translations of standards and technical regulations in China, India and Korea, as well as various U.S. standards in English, Mandarin, Chinese and Korean.

American National Standards Institute (ANSI)

_____________ laws are legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott.

Antiboycott

The EU has attempted to increase its standardization through the ___________.

CE Mark

_________ is the United State's largest trading partner

Canada

A NAFTA __________ is required for all shipments moving among the member states. They are required for all commercial shipments entering the U.S. where the total line item value for a good (not the shipment value) is more than $2500.

Certificate of Origin

Internationally accepted standards or recommendations for the protection of plants, animals and foodstuffs are found in the __________

Codex Alimentarius

Under the Constitution's ________ the states gave the federal Congress the exclusive power to manage trade among the states and with the foreign nations

Commerce Clause

The _______________ sits in Brussels, Belgium and is the effective "capital" of the EU.

Council of Ministers of the European Union

The ___________ serves as the EU's executive body carrying out the decisions of the Council of Ministers. It is also the only body that can make legislative proposals for the Council of Ministers and European Parliament to consider.

European Commission

The __________ is composed of the heads of state or government of the EU's member states long with the president of the European Commission. It has jurisdiction over a wide range of areas, including the composition of Parliament and Commission and law enforcement and constitutional matters.

European Council

The _____________ in Luxembourg functions as the final arbiter of the EU law.

European Court of Justice of the European Union (ECJ)

NAFTA applies to goods wholly produced or obtained in __________

North America

The ECJ may be asked by a national court to issue a preliminary ruling on a point of EU. This is called an ________ and is largely absent in the U.S. judicial system.

advisory opinion

An _________ under NAFTA consists of five members who are experts in trade or law.

arbitral panel

National courts are/are not? obligated to follow EU law and the ECJ's decisions.

are

Appeals from administrative orders in NAFTA cases now go to NAFTA ________, not to courts of law.

binational panels

Under NAFTA, a foreign product can/cannot? be channeled through one North American country for sale in another North American country and avoid payment of duties.

cannot

The North American Free Trade Agreement (NAFTA) is an agreement among what three countries?

1. Canada 2. Mexico 3. United States

The WTO Agreement on Agriculture began the process of removing government intervention in the farming sector and ending government programs that distort normal market conditions. The agreement has three main objectives:

1. Cutting domestic subsidies and other direct payments to farmers 2. Cutting programs that subsidize exports of farm products 3. Assuring greater access for imported farm products by converting quotas and other non tariff barriers into tariffs

There are two concepts of primary importance in any discussion of EU law. The two doctrines are:

1. Direct effects 2. Supremacy doctrine

The Parliament comprises members of various political factions, including the:

1. Socialists 2. Christian Democrats 3. European Democrat Alliance 4. Greens

According to the text, after 2001, three forces quickly reshaped U.S. export control policy:

1. The "War on terror" 2. Renewed concerns and tensions over nuclear proliferation (especially N. Korea and Iran) 3. China has become a global economic powerhouse and major purchaser of U.S. commercial technology

According to the test, under the EAR, there are three broad reasons for controlling exports:

1. To protect national security 2. To promote U.S. foreign-policy 3. To prevent the short supply of essential domestic materials

Congress has passed a number of statutes giving the U.S. authority to issue sanctions. The two most important are:

1. Trading with the Enemy Act 2. International Emergency Economic Powers Act

Services presently account for ___ percent of all economic activity and employment in the EU.

70

The ____________ is the only EU institution whose members are elected by European citizens

European Parliament

The ______________ were originally promulgated under the authority of the Export Administration Act of 1979 by the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. In 2001, the act expired and was not renewed by Congress, however, it remains effective due to executive orders of the president.

Export Administrative Regulations (EAR)

Appeals from administrative orders in NAFTA cases now go to NAFTA binational panels, not to courts of law. Appeals of these decisions may be taken only to a NAFTA __________, not to courts of law.

Extraordinary Challenge Committee

The NAFTA __________ supervises the implementation of the agreement and attempts to resolve disputes that may arise regarding its interpretation or application.

Fair Trade Commission

In the U.S. federal legislation called the ________, is enacted every five years to establish U.S. agricultural and food policies, programs and funding for that period.

Farm Bill

__________ means that controls may not be placed on the export of goods that are "available without restriction from sources outside the United States in sufficient quantities and comparable in quality to those produced in the United States so as to render the controls ineffective in achieving their purposes."

Foreign availability

The ________ refer to a body of EU law originating with the Treaty of Rome in which the EU committed itself to achieving the free movement of:

Four Freedoms 1. Goods 2. Services 3. Capital 4. People

The ___________ based in Geneva, is a non-governmental organization comprising the national standards institutes of 163 countries.

International Organization for Standardization (ISO)

A __________ is a government rule or regulation that protects or enhances food, animal or plant safety or quality including preventing the spread of pathogens and disease.

Sanitary and phytosanitary measure

One of the most important weapons in the U.S. arsenal against foreign trade barriers and unfair trade practices is common known to businesspeople and lawyers as _____________

Section 301 (of the U.S. Trade Act of 1974).

The EU courts follow the _________ tradition because all but the British and Irish judges come from this tradition

civil law

Controlled items include ________, intended primarily for civilian use; and _______ items, which may also have a military or "proliferation" use.

commercial items, dual-use

A _________ seeks to further facilitate free competition within a group of nations by protecting the right of all enterprises and persons within the area to do business, invest capital, and sell their services anywhere within the area without discrimination on the basis of national origin

common market

The EAR defines _________ as the specific information and know-how necessary for the development, production or use of a product, including the results of proprietary research done by corporations, universities or research labs.

control technology

In the "Skippy" peanut butter case, discussed in the section on marketing and labeling rules, the court held that under Annex 311 to NAFTA, the company could/could not? put "Made in the U.S.A." on its label.

could not

The process of becoming a member of the EU is a long and complex process. Any European state may apply for membership if it respects ___________.

democratic value

As an American citizen, you ________ have a constitutional right to international travel in the absence of your government's approval.

do not

The term _________ means the act of shipping controlled items out of the U.S. or the transfer of controlled items or technology to a foreign national where they are located inside or outside the U.S., including technology.

export

A __________ is an individual who is neither a U.S. citizen nor a permanent legal resident of the United States.

foreign national

One of the most important weapons in the U.S. arsenal against foreign trade barriers and unfair trade practices is common known to businesspeople and lawyers as Section 301 (of the U.S. Trade Act of 1974). An offending country may be designated either as a _________ (the worst offenders) or be placed on the ________

priority foreign country, watch list

The WTO Agreement on Government Procurement (AGP) requires fair, open and nondiscriminatory procurement practices and sets up uniform procurement procedures to protect suppliers from different countries. It prohibits a procuring agency from awarding a contract to a foreign firm based on certain conditions, called _____________

procurement offsets

According to your text, NAFTA does more than just eliminate duties between member countries. List three specific things from your text that NAFTA does:

1. Eliminate duties between Canada, Mexico and the U.S. 2. Liberalizes trade in goods and services 3. Protects intellectual rights

Although the EU is a single unit, it started out as three "communities" each created and operating under a separate treaty. Those three treaties are:

1. European Coal and Steel Community 2. European Atomic Energy Community 3. Commission of the European Community

The ______________ Agreement prohibits countries form using their regulations or standards to discriminate against the import of foreign goods.

WTO Agreement on Technical Barriers to Trade

An economic or ___________ is a regulation that restricts or prohibits relationships with "targeted" foreign countries, foreign entities, or named foreign individuals because of their support for internationalism terrorism, proliferation of weapons of mass destruction, international drug and narcotics trafficking or other threats to national security.

financial sanction

A _________ develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries

free trade area

One of the principal goals of the EU is to __________ national laws and create a common legal environment for business.

harmonize

A corollary to least restrictive trade is that national laws and regulations passed for purely internal purposes, such as the protection of the general HS&W _________ must also pose the fewest barriers to trade as possible.

health, safety, and welfare

The __________ is used to determine the country of origin of good imported into the U.S. when the goods are produced or assembled in more than one country.

substantial transformation test

The Annex 401 rules of origin may be based on a change in tariff classification, a regional value-content requirement, or both depending on the requirements for that particular product. This is known as the _________

tariff shift rule.

Technical regulations and standards that apply to imported foreign products, even if they also apply equally to domestic products, are called ________________.

technical barriers to trade

A ____________ is a law affecting a product's characteristics-such as its performance, design, construction, chemical composition, materials, packaging or labeling-that must be met before a product can be imported or sold in a country.

technical regulation

Many professional organizations from NAFTA countries are negotiating ________. Once ratified by state and federal governments, they will permit recognition of professional licenses in member countries.

mutual recognition agreements

NAFTA'S _________ principle states that once goods arrive from another NAFTA country, they must be treated without discrimination and no differently than domestically made goods.

national treatment

Export controls are based on the article, technology, country of destination and the individual person or entity receiving it-known as the end user. It is unlawful to release any controlled substance to anyone on the following lists:

1. Entity list (e.g. China, Russia, Pakistan, India) 2. Specially designated nationals/ blocked persons list (terrorism, drugs) 3. Unverified List (firms with "red flag") 4. Denied Persons List (denied or revoked) 5. Debarred List (barred from exporting defense articles)

The most important general rules of NAFTA are:

1. Goods must be wholly produced or obtained in Canada, Mexico or the U.S. 2. Goods may contain non-originating inputs (components or raw materials) but must meet the regional value content requirements

The WTO Agreement on Technical Barriers to Trade Agreement prohibits countries form using their regulations or standards to discriminate against the import of foreign goods. The agreement has three methods of achieving its goals:

1. Harmonization 2. Equivalence 3. Mutual recognition

Most countries require some type of testing, inspection or certification of regulated products. There are two major regulatory approaches:

1. Prior approval 2. Prior certification

The ______________ now known as the European Union (EU) had 28 member states as of August, 2013 and is the largest single market in the world.

European Economic Community