International Law Final Exam

Company A in the US makes widgets and exports them to Cambodia under a trade agreement. A local widget maker in Cambodia comes into political power and the country raises it tariff on widgets above the bound rate. Company A is furious. Its quickest remedy is likely:

Complain to the US Trade Representative by filing a Section 301 Petition and assert that this is matter for mandatory retaliation

In 1944, the allied nations met at the Breton Woods Conference and out of concern with the "post-war" economies of the nations of the world created:

International Monetary Fund and World Bank

the process by which a government sells or transfers a government-owned industry or assets to the private sector is called

privatization

Country A imposes an import tax on fungible goods such as oil, wheat, or timber that enter specially from country B. This is likely called a:

specific or flat tariff

You wish to export certain high-tech consumer products to South Korea. You are unsure of Korean technical standards for the products and have no access to a local, reliable Korean-English translator. You need a good English translation. What is a good place for you to check into obtaining one?

American national Standards Institute

Based on its economic growth in the past decade or so and global impact, the most significant admission into the WTO of a new member was in 2001 with the admission of

China

China has a large agency ensuring quality of goods entering that country. Any exporter must appreciate that goods exported to China cannot enter the country unless they have the

China Compulsory Certification Mark

Countries must rely on internationally accepted standards or recommendations for the protection of plants, animals and foodstuffs. The most notable standards are

Codex Alimentarious Commission Standards

WTO agreement have extended WTO principles to a variety of services but have generally not significantly affected "patchwork" domestic regulations about:

Licensing of Foreign Professionals

ISO 9000 is a standard intended to ensure

Product quality through the product design and manufacturing process

The US Buy American Act requires federal agencies to purchase goods of US origin in a preference to foreign-sourced goods. Exceptions to the Act which allow the purchase of foreign goods do not include:

The foreign manufacturer is in a NATo member country

The WTO Agreement on Government Procurement enacted in 1994 has been applied to

Upgrade and liberalize procurement practices in large-scale government procurements

A nation's usual remedy for dumping is for the country to place ______ on the dumped products which are in addition to any regular tariffs already imposed:

antidumping duties

One of the main principles of the GATT system was a commitment by nations to:

conduct of regular multilateral trade negotiations

Prior to formally requesting binding dispute resolution with the WTO Dispute Resolution Body, the party complaining about a tariff violation must:

conduct trade consultations with the offending party at the WTO

an export subsidy is a governmental financial contribution to domestic producers

contingent on export performance

The selling of products in a foreign country for less than the price charged for 'like" or comparable products in the exporting company's home market is called:

dumping and conformity assessments

The Uruguay Round from 1986 to 1994 ushered in significant changes to international trade regulation. These changes included all of the following except:

elimination of all non-tariff trade barriers

A basic right of WTO membership is that a country must treat goods and services from all WTO members

equally and without discrimination

The original drafters of GATT know of the possible political and consequences of tariff concessions and built into the process an _____________ as means to be relieved from its concessions.

escape clause

WTO members, when setting valid restrictions on trade, should make them no more onerous than necessary to achieve the goals for which they are imposed. This is called the principle of:

least restrictive trade

Colombia in South America has many widgets imported into it by foreign manufacturers of the product. Colombia wishes to react to this flood of widgets unexpectedly from Country B, Country C and Mexico. It wishes to protect its own manufacturers and adopts a "safeguard" of a higher tariff which applies only to non-NAFTA countries. This is because Colombia wishes to stay on "good terms" with these key countries. Is this a valid safeguard if all non-NAFTA nations treated fairly?

no

There are special rules for Country A determining antidumping duties if an exporting nation (Country B) is identified as one of the "non-market economy countries." These are called NMEs. Calculation of antidumping duties for products from these countries is difficult because of difficulty in determining:

normal value of the good in country A

Coal is used to make steel. France heavily subsidizes its coal industry. The use of coal sold to steel companies there and exported later as part of steel ingots allows those steel exporters to sell "below market" their product. This is an example where a ______ may be implemented by the importing nation against French steel.

tariff

When nations attempt to minimize or eliminate technical barriers to trade, they use various methods to achieve this goal except _______

tariff concessions

all of the different rounds of multilateral trade negotiations had the same goal of

trade liberalization

a subsidy bestowed on raw materials or component parts for use in an exported product is called

upstream subsidy

Company A in the US believes a Canadian competitor is engaging in "dumping" of certain car parts by sending them into the US for sale at "less than fair value" prices. How does Company A can formally raise this issue and seek relief:

File petitions for an investigation with the US International Trade Administration and/or International Trade Commission as appropriate

Your business is in Country A. You wish your company to manufacture products for export into a very "pro-environmental" Country B. In order to be a successful exporter, you likely need to establish corporate compliance with your own local, state and federal environmental laws. This will enable you to obtain a "certification" of compliance with:

ISO 14000

is a nongovernmental organization which has developed over 21,000 standards for goods, services, manufacturing and technology. Its goal is to foster international trade by creating a "common language" for standards and technical requirements.

International Organization for Standardization

You head a large, agricultural US company growing many products. A consultant is retained to identify potentially profitable export opportunities. He will likely advise you that exporting _______ into ______ has often provoked much resistance. Domestic product self-sufficiency and cultural pride are factors there making this a challenging difficult export opportunity to achieve success. The blanks are in order:

Rice...Japan

One of the principles of the WTO is that whereby members must eliminate quoatas and other non-tariff barriers and convert them into tariffs. This is called:

tariffication

A balance-of-payment deficit arises:

when nation's outflow of foreign exchange exceeds its receipts in its own currency

as used in this chapter, an attempt by exporters to unlawfully or deceptively evade import restrictions on duties is called

circumvention

A nation may impose tariffs on products that are imported from another country and then decrease tariffs on other products to "even out" overall tariffs placed on goods from that country. This is called:

trade compensation

refers to the extent in which government regulations, product standards and technical requirement are made readily available to the domestic public, as well as foreign firms.

transparency

You lose your job as car manufacturing company employee in Detroit. If you can meet certain criteria, you can successfully file a petition and seek additional compensation beyond state unemployment compensation, or a subsidy if you have a lower-paying job. This is:

a federal program called trade adjustment assistance (TAA) administered by US Secretary of Labor

All NAFTA countries impose a 1.5% tariff on shoes manufactured within their free trade area. Tariffs on Italian shoes exported into US must be at a 7.5% tariff. Reggios Shoes in Rome makes shoes and ships them to Mexico at a 1.0% tariff rate. They are "slightly altered" in Mexico by adding a few changes to the heel and then exported into US at lower tariff rate as "Mexican shoes." This is a common-occurring example of:

circumvention

Manufacturers in Country A export widgets to Country B. Domestic manufacturers allege dumping and ask for duties to be imposed. Calculation of the "dumping margin" is critical in determining antidumping duties. This may be stated to be:

normal value-export price=dumping margin

US companies have a special concern with violation of their intellectual property rights. Given your company's special concerns with protecting its IP rights, before you enter a foreign company (Country A) with the intent to trade a product made by your company, you should see if:

Country A on the USTR's watch list or priority watch list

You are a trade representative for the US at a negotiation for reducing trade barriers on agricultural products imported from Country A. You wish to stop A's government from being too involved in its agricultural sector by helping out domestic farmers. This means you must place on the negotiating table the topic of:

Country A's domestic subsidiaries for farmers