True / False
1. In some circumstances, the presentation of research by a U.S. scientist at a convention in a foreign nation may
require an export license.
a. True
b. False
2. The Department of Commerce has the responsibility for the control of nonmilitary commercial goods, commodities,
and technology.
a. True
b. False
3. The current law that controls the export of goods from a U.S. manufacturer to a foreign buyer also controls the re–
export of those goods beyond the boundaries of the country of the original foreign buyer.
a. True
b. False
4. Among the reasons for controlling exports are the protection of national security, the prevention of terrorism, the
promotion of regional stability, and the preservation of scarce materials.
a. True
b. False
5. Formulas, blueprints, and technical data are subject to controls when exported.
a. True
b. False
6. “Diversion” is when controlled goods are sold by a U.S. exporter to an importer in Country A, who in turn re-exports
them to a buyer in Country B, which is unfriendly with the United States.
a. True
b. False
7. There is no global consensus on an effective international control system over arms and technology.
a. True
b. False
8. Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not
be granted because of the type of product, the product’s end use, or the country involved.
a. True
b. False
9. Since the end of the cold war all controls have been abolished on all commodities going to Russia.
a. True
b. False
10. EPCI controls were instituted to stem the flow of currency to the third world countries.
a. True
b. False
11. Companies in some countries cooperate with the boycott against Israel.
a. True
b. False
12. Items that are not classified on the Commerce Control List may be exported without an in individual export license.
a. True
b. False
13. The expired 1988 export control law was reenacted by Congress in 1994.
a. True
b. False
14. Export controls have been extended by the president through the issuance of executive orders pursuant to the USA
Patriot Act.
a. True
b. False
15. The U.S. export control system is conflicted: on the one hand, advocates of free trade argue for the most limited
restrictions, while national security advocates press for relatively more restrictions.
a. True
b. False
16. One current export control issue pertains to the level of control imposed on encryption software.
a. True
b. False
17. Unilateral export controls are determined by several countries (against another or group of other countries) but
enacted by only one country; multilateral export controls are determined and enacted by several countries to control
the exports to another country or groups of countries.
a. True
b. False
18. An example of a successful unilateral use of export controls was the embargo of wheat destined to Russia as a
political response to the Russian invasion of Afghanistan.
a. True
b. False
19. The trade sanctions against the Castro government in Cuba has been successful in encouraging a more democratic
style representation.
a. True
b. False
20. The U.S. anti boycott laws are applicable to foreign affiliates of U.S. based companies.
a. True
b. False
21. In Briggs and Stratton Corp. v. Baldridge, Briggs was blacklisted by Arab countries because of its compliance
with U.S. anti-boycott regulations. Briggs subsequently brought a lawsuit claiming damages as a result of U.S.
government action. Specifically, Briggs demanded “just compensation” under the Fifth Amendment “takings clause.”
The court:
a. Invoked sovereign immunity to avoid taking subject matter jurisdiction.
b. Refused relief because the amount of damages was “speculative, at best.”
c. Refused relief because Briggs’s property had not been “seized or restrained.”
d. Allowed relief, since Briggs could demonstrate a complete taking of certain contractual opportunities and
reasonable investment expectations.
e. Refused relief because Briggs lacked “standing.”
22. The two principal agencies that regulate the export of goods from the U.S. are:
a. U.S. Department of Commerce, U.S. Department of State.
b. U.S. Department of Defense, U.S. Bureau of Customs and Border Protection.
c. U.S. Customs Service, Federal Trade Commission.
d. Federal Trade Commission, U.S. Department of Commerce.
23. In 1949, NATO’s COCOM was created:
a. To aid Europe‘s economic recovery after WWII.
b. To control the exporting of goods with military applications to communist countries.
c. To prevent the escalation of the Cold War.
d. To provide U.S. manufacturers with fairer trading opportunities outside the U.S.
24. Which is not a current issue regarding export controls?
a. Can effective multilateral controls be established?
b. Who is the enemy?
c. In the absence of multilateral controls, can unilateral controls be effective?
d. Can the State Department both promote trade and commerce and control exports?
25. In the United States, the office that initially reviews and rules on license applications is the:
a. Bureau of Industry and Security.
b. Office of Export Trade Control.
c. Export Administration Board.
d. Export Policy Operations Committee.
26. Which of the following statements is not true?
a. U.S. export control law requires the issuance of an export license to cover the movement of controlled U.S.-
origin products from India to Taiwan.
b. The Department of Commerce will not recommend the decontrol of a product on grounds that a non-U.S.
item of comparable quality is available rendering the control ineffective.
c. The Bureau of Industry and Security has 90 days to review and rule on the application of an export license.
d. Civil penalties may be imposed on a strict liability basis for violations of export control law without having to
prove criminal intent.
27. The illegal placement of goods or commodities in the hands of an individual for whom an export license would be
denied is known as:
a. Conversion.
b. Delusion.
c. Derision.
d. None of the above.
28. Enforcement of the U.S. export laws is the function of the:
a. U.S. Department of Commerce.
b. Office of Export Enforcement.
c. State and local police forces.
d. U.S. military.
29. When the president decides to impose export controls for national security or foreign policy reasons, the following
businesses may be adversely affected:
a. Farmers whose crops are in short supply.
b. Businesses who cooperate with Arab nations in boycotting Israel.
c. Subsidiaries of U.S. companies having contracts with nations targeted by U.S. foreign policy.
d. B and C only.
e. A, B, and C.
30. Discuss the strengths and weaknesses of using export controls to effectively stem the tide of high-tech equipment to
countries who do not share our political or democratic beliefs.
31. Compare and contrast unilateral export controls with multilateral controls.
32. Multilateral controls are typically subject to self-regulation (via each home country).
Outline an (alternative) internationalized process to address situations where one partner to such an agreement
believes that another partner to the agreement is not enforcing the agreement or is doing so unevenly.
33. K&L Chemicals is a U.S.-based manufacturer of agricultural chemicals. K&L recently sold two thousand gallons of
its most toxic pesticide to Sahara Traders, a company headquartered in the North African desert nation of Chad.
Sahara Traders refused to disclose the use that it intended to make of the product and paid cash upon its delivery.
Sahara ultimately shipped the pesticide to the North Korean government for use in its chemical weapons program. Is
K&L liable for the ultimate transshipment of its pesticide to North Korea? Please explain your answer.