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A) Hindu law
B) Sikh law
C) Islamic law
D) Jewish law
58) _____ rights refer to the legal rights over the use to which a resource is put and over the
use made of any income that may be derived from that resource.
A) Trade
B) Property
C) Positive
D) Common
59) In Russia, in the chaotic period following the collapse of communism, an outdated legal
system, coupled with a weak police force and judicial system, allowed the Russian Mafia to
demand “protection money” from business owners. Any business owner who rebelled had to face
violent retribution. This violation of property rights exemplifies
A) private action.
B) copyright violation.
C) infrastructural failure.
D) public liability.
60) Violation of property rights done through legal mechanisms such as levying excessive
taxation and requiring expensive licenses or permits from property holders is called
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A) private action.
B) collective action.
C) public action.
D) copyright violation.
61) Which of the following areas of international trade is regulated by the Foreign Corrupt
Practices Act?
A) making and performance of commercial contracts in international trade
B) preventing bribery and unethical acts in the conduct of international business
C) establishing a set of safety standards to which a new product must adhere
D) controlling the mafia activity that hinders trade in Russia, Japan, and the United
States
62) Which of the following is an example of intellectual property?
A) a music score
B) a laser-tag game
C) a software business
D) a theater
63) A _____ grants the inventor of a new product or process exclusive rights for a defined
period of time to the manufacture, use, or sale of that invention for 20 years.
A) copyright
B) trademark
C) contract
D) patent
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64) Designs and names by which merchants or manufacturers designate and differentiate
their products are known as
A) trademarks.
B) copyrights.
C) patents.
D) licenses.
65) The research and development division of a company has recently designed a new coffee
vending machine that is likely to sell very well in the market. It is compact, user-friendly, and
provides unprecedented efficiency in terms of cost per cup. Consequently, the company fears
that its competitors would soon mimic the design of its product. To protect its product, the
company is now seeking a
A) copyright.
B) patent.
C) trademark.
D) certification.
66) Which of the following provides exclusive legal rights to authors, composers,
playwrights, artists, and publishers to publish and disperse their work as they see fit?
A) patent
B) copyright
C) trademark
D) license
67) The TRIPS agreement was designed to
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A) exclude China from all intellectual property agreements.
B) oversee a much stricter enforcement of intellectual property regulations.
C) hold a firm and its officers responsible when a product causes injury, death, or
damage.
D) support traded software and recorded property among developed markets.
68) Which of the following statements about the Trade-Related Aspects of Intellectual
Property Rights (or TRIPS) agreement is true?
A) It was designed to oversee the loosening of intellectual property regulations,
beginning in 1995.
B) It obliged WTO members to grant and enforce patents lasting at least 20 years and
copyrights lasting 50 years.
C) It directed rich countries to comply with its rules of intellectual property protection
within five years.
D) It provided the very poorest countries amnesty from complying with its rules of
intellectual property protection.
69) Safety standards to which a product must adhere are set by
A) safety certifications.
B) contract laws.
C) product safety laws.
D) product liability laws.
70) Private action refers to
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A) public officials extorting income, resources, or the property itself from property
holders.
B) bribing government officials in foreign countries in an attempt to win lucrative
contracts.
C) theft, piracy, blackmail, and the like by private individuals or groups.
D) violations of intellectual property rights.
71) The _____ establishes a uniform set of rules governing certain aspects of the making and
performance of everyday commercial contracts between sellers and buyers that have their places
of business in different nations.
A) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
B) Paris Convention for the Protection of Industrial Property
C) United Nations Convention on Contracts for the International Sale of Goods (CISG)
D) World Trade Organization (WTO)
72) The _____ makes it illegal for American companies to bribe a foreign government
official in order to obtain or maintain business over which that foreign official has authority, and
requires all publicly traded companies to keep detailed records that would reveal whether a
violation of the act has occurred.
A) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
B) Foreign Corrupt Practices Act (FCPA)
C) Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions
D) Organisation for Economic Co-operation and Development (OECD)
73) Company Zee has been found guilty of manufacturing a product that caused harm to its
users, violating criminal liability laws. Which of the following is the most likely outcome for
Company Zee?
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A) payment and monetary damages
B) more severe punishment if Company Zee is outside the United States
C) fines or imprisonment
D) nothing if it was Company Zee’s first offense
74) _____ are established through patents, copyrights, and trademarks.
A) Digital signatures
B) Ownership rights over private property
C) Origination fees and tributes
D) Ownership rights over intellectual property
75) In common law, _____ refers to cases that have come before the courts in the past.
A) custom
B) precedent
C) codification
D) tradition
76) The most widely practiced theocratic legal system in the modern world is
A) Christian.
B) Hindu.
C) Jewish.
D) Islamic.
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77) In the 1970s, the United States _____, which requires all publicly traded companies,
whether or not they are involved in international trade, to keep detailed records that would reveal
whether a violation of the act has occurred.
A) adopted the Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions policy
B) passed the Foreign Corrupt Practices Act
C) joined Transparency International
D) joined the Organisation for Economic Co-operation and Development (OECD)
78) A law system that is based on a detailed set of laws organized into codes is
A) municipal.
B) contract.
C) civil.
D) common
79) Although many countries have stringent intellectual property regulations on their books,
the enforcement of these regulations has often been lax. This has been the case even among
many of the 185 countries that are now members of the _____, all of which have signed
international treaties designed to protect intellectual property.
A) World Intellectual Property Organization
B) General Agreement on Tariffs and Trade
C) Business Software Alliance
D) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
80) The central message of collectivism is that individual economic and political freedoms
are the ground rules on which a society should be based.
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⊚ true
⊚ false
81) The communists believed that socialism could be achieved by democratic means and
turned their backs on violent revolution and dictatorship.
⊚ true
⊚ false
82) Some believe the Cold War was simply about nuclear proliferation, but in many respects,
it was a war between ideas of economic and political governance.
⊚ true
⊚ false
83) Most modern democratic states practice representative democracy.
⊚ true
⊚ false
84) Democracy is a form of government that prohibits opposing political parties.
⊚ true
⊚ false
85) In a totalitarian country, there are safeguards to protect an individual’s right to freedom of
expression, opinion, and organization.
⊚ true
⊚ false
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86) The number of command economies has fallen dramatically since the demise of
communism in the late 1980s.
⊚ true
⊚ false
87) The Republic of Elbow has a command economy, and as such, its objective is to
encourage free and fair competition between private producers.
⊚ true
⊚ false
88) In mixed economies, governments tend to take into state ownership troubled firms whose
continued operation is thought to be vital to national interests.
⊚ true
⊚ false
89) A nation’s legal system is usually of very little interest to international business
managers.
⊚ true
⊚ false
90) Judge Michaels operates in a country with a civil law system. This system has more
flexibility than a common law system.
⊚ true
⊚ false
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91) A theocratic law system is one in which the law is based on religious teachings.
⊚ true
⊚ false
92) The parties to an agreement normally resort to contract law when one party feels the
other has violated either the letter or the spirit of an agreement.
⊚ true
⊚ false
93) Contracts under a civil law system tend to be very detailed with all contingencies spelled
out.
⊚ true
⊚ false
94) Many of the world’s larger trading nations, including India and the United Kingdom,
have not ratified the United Nations Convention on Contracts for the International Sale of Goods
(CISG).
⊚ true
⊚ false
95) To facilitate international business, property rights are defined in a consistent way across
countries.
⊚ true
⊚ false
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96) Property rights can be violated in two ways—through private action and through public
action.
⊚ true
⊚ false
97) The Foreign Corrupt Practices Act does not allow for grease payments.
⊚ true
⊚ false
98) Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights,
and trademarks establish ownership rights over intellectual property.
⊚ true
⊚ false
99) Patents discourage companies from committing themselves to extensive basic research.
⊚ true
⊚ false
100) The Trade-Related Aspects of Intellectual Property Rightsagreement attempts to reduce
intellectual property protections to enhance trade.
⊚ true
⊚ false
101) Product liability sets certain safety standards to which a product must adhere.
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⊚ true
⊚ false
102) Product liability can be much lower if a product does not conform to required safety
standards.
⊚ true
⊚ false
103) The political systems of a country raise ethical issues that have implications for the
practice of international business.
⊚ true
⊚ false
104) When Penelope returned home from vacation, she found her store had been robbed and
her most valuable merchandise was gone. This violation of property rights is considered private
action.
⊚ true
⊚ false
Answer Key
Test name: chapter 2
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