Law ch7

The UNCTAD a. represents the interests of less developed countries b. arbitrates trade disputes between countries c. furnishes letters of credit to expedite trade d. all

A

When a US trademark holder licenses a foreign business use of its trademark overseas and a third party imports these goods into the US to compete against the US manufacturer's goods, the foreign-made goods are called a. "gray markets" b. counterfeit c. specially licensed d. dumped goods

A

Which of the following allows a domestic firm to maintain the greatest control over its foreign operations a. wholly owned sibsidaries b. licensing c. foreign distributorships d. agency arrangements

A

NAFTA seeks to eliminate tariffs among which countries a. all members of the UN b. US, Canada, Mexico c. US and Japan d. members of the common market

B

The main purpose of the IMF is to a. provide easy access to money for multinational corporations b. facilitate the expansion and balanced growth of international trade c. create a model simplified lending system d. facilitate currency exchanges

B

The transfer of technology rights in a product to allow another firm in a foreign country to produce a product in return for royalties or other specified payments is called a. exporting b. licensing c. agency representation d. subsidiary sales

B

The provisions of the CISG have been strongly influenced by a. the GATTs most favored nation clause b. the european economic community treaty of rome c. the uniform commercial code d. the success of the organization of petroleum exporting companies

C

Which is a correct statement about arbitration of contractual disputes regarding international trade? a. it is done in court b. there is extensive judicial review of the decision c. parties frequently arbitrate in neutral countries d. it is not available in disputes of more than 1 million

C

Which of the following statements is true regarding the WTO? a. the WTO has been in place since 1947 b. the WTO coordinates its activities with GATT c. It provides a dispute settlement body to promote the resolution of trade disputes d. it has the ability to impose criminal penalites

C

A direct sale to customers in a foreign country is a a. foreign distriburtorship b. agency arrangement c. licensed sale d. export sale

D

GATT a. is a multilateral treaty b. is subscribed to by the US c. has as its goal the liberalization of world trade d. all

D

One reason the US controls the export of goods and technology is a. for national security reason b. foreign policy c. short supply of domestic goods d. all of the above

D

Which of the following does not describe the EU? a. it was formerly known as the european economic community b. it has ten members sign on in 2004 c. it eliminated internal barriers to the free movement of goods, persons, services, and capital between member countries d. it is administered solely by the heads of state of the member countries

D

Which of the following is not a nontariff barrier? a. government subsidies b. import quotas c. complex custom procedures d. an import or export duty or tax placed on goods as they move in or out of a country

D

A direct sale by an American firm to a customer abroad, with terms of payment commonly based on an irrevocable letter of credit, is an import sale

False

A letter of credit agrees to provide the seller with needed currency exchanges when transactions with foreign buyers occur

False

Licensing involves the transfer of title of goods to a distributer who bears the financial and commercial risks for the subsequent sale of goods

False

One of the main goals of the OPEC was to reduce taxes from crude oil production

False

Since 1947 and the end of the WWII era, the goal of the General Agreement on Tariffs and Trade has been to restrict world trade

False

The US dollar is considered the international currency

False

The goal of the NAFTA is to eliminate all tariffs between the US and Europes

False

The jurisdictional rule of reason addresses the problems that arise when a foreign country has a significant interest in regulating conduct taking place within the US

False

The term dumping refers to the sale of damaged goods in a foreign market to cut the losses that would otherwise be caused by the damage

False

The use of agency arrangements allows a US firm to avoid taxation on sales made in its agent's country

False

The use of import quotas represents the most common form of tariff barrier

False

A common barrier to the free movement of goods across boarders is the tariff barrier

True

A country can borrow money from other IMF members or from the IMF by means of special drawing rights sufficient to permit that country to maintain the stability of its currency's relationship to other world countries

True

Blocking laws prohibit the disclosure, copying, inspection, or removal of documents located in the enacting country in compliance with orders from foreign authorities

True

Franchising is a form of licensing that now is very common in international business

True

Law is the result of the desire of the lawmaker to achieve certain goals

True

OPIC offers asset protection insurance against risk of loss to plant and equipment, as well as loss of deposits in overseas bank accounts, to companies that qualify on the basis of the involvement of a "substantial US interest"

True

Parties to international ventures often agree to arbitrate their disputes in neutral countries

True

The Foreign Corrupt Practices Act prohibits improper payments to influence foreign officials

True

The IMF was formed to shorten the duration and lessen the disequilibrium in the international balance of payments of its members

True

The SEC is not limited to litigation when a securities law enforcement investigation runs into secrecy or blocking laws

True

The UN Conventions on Contracts for the International Sale of Goods sets forth uniform rules to govern international sales contracts

True

The WTO provides a dispute settlement body to enable member countries to resolve trade disputes rather than engage in unilateral trade sanctions or a trade war

True

The interests of the less-developed nations of the world are represented by the UNCTAD

True

Under the GATT, the principle of trade without discrimination is embodied in the most favored nation clause

True

Under the act of state doctrine, the courts of one country will not sit in judgement of the acts of the government of another country conducted within its own territory

True

United States antitrust laws can protect US exports

True

When an international sale is made, the parties often set forth in their contract which country's law will govern a dispute

True