The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
requires developing countries that are members of the WTO to adopt intellectual
property laws similar to the United States.
a. True
b. False
Answer:
There is very little debate over how the U.S. Constitution divides power over foreign
affairs and foreign trade between the Congress and the president.
a. True
b. False
Answer:
Developing countries usually welcome foreign investment in which of the following
cases:
a. Companies producing quality consumer goods because these firms bring a variety of
needed products at reasonable prices for consumers.
b. Companies producing goods for export.
c. Companies investing in telecommunications and transportation industries.
d. Companies investing in the oil and gas industry and other natural resources.
Answer:
Under the UCC, between merchants, an offer may not be revoked if it is made in a
signed writing that gives assurance that it will remain open for a stated period of time.
a. True
b. False
Answer:
Available forms of import relief include:
a. Absolute quotas.
b. Auctioned quotas.
c. Tariff increases (up to 50 percent).
d. domestic subsidies.
e. a, b, and c.
Answer:
Ocean carriers are liable if cargo is damaged because it was left exposed to rain during
the journey.
a. True
b. False
Answer:
Some of the newly formed countries of the former Soviet Union have laws that mandate
discrimination against certain people.
a. True
b. False
Answer:
The St. Paul Guardian Ins. v. Neuromed Systems case held that international
commercial terms were defined according to the Uniform Commercial Code.
a. True
b. False
Answer:
Under German Works Constitution Act, an employer has the right to close a plant or
business facility if based on economic necessity at any time and without consultation
with workers.
a. True
b. False
Answer:
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
Answer:
A company that makes unauthorized copies of a movie and sells the copies on DVDs is
infringing on the movie
owner’s intellectual property rights.
a. True
b. False
Answer:
The type of risk that includes controls on exports, imports, controls on the movement of
currency, restrictions on licensing and investment, and controls over physical property
located in a country is:
a. Legal risk.
b. Political risk.
c. Economic risk.
d. Currency risk.
Answer:
According to GATT, quotas are considered acceptable devises for regulating trade only
where:
a. A nation is imposing a temporary safeguard to protect its balance of payments.
b. They are enacted into law by a nation’s legislative body.
c. Nations are engaged in a trade war.
d. A nation has first petitioned the United Nations for permission to do so.
Answer:
The Department of Treasury has the broadest authority over international trade of all
department level agencies.
a. True
b. False
Answer:
Unlike the case in the U.S., in many foreign nations, particularly European countries,
when an investor acquires a firm:
I. The investor is compelled to adhere to existing employment arrangements.
II. The investor must raise workers’ salaries at a set percentage determined by the host
country.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer:
When choosing to establish a foreign branch or subsidiary, a prime factor in the U.S.
company’s decision is:
a. The tax rates applicable to different forms of organizations.
b. The investment tax credit given by the foreign country.
c. Whether the foreign taxes are creditable taxes for U.S. purposes.
d. Both A and C.
Answer:
Governments in developing countries usually encourage the use of licensed intellectual
property by diligently enforcing laws designed to protect it from theft or other means of
exploitation.
a. True
b. False
Answer:
In the dispute regarding the European Union’s importation of Latin American bananas,
the dispute panel found no disparity in tariffs on the European Union’s part.
a. True
b. False
Answer:
NAFTA’s national treatment principle states:
a. All goods claiming to be from a country must be produced in that country.
b. All products from a country must have the same amount of tariffs placed on them.
c. All imports from a NAFTA country must be treated like similar domestically
produced goods.
d. All exports from a NAFTA country must meet certain quality standards.
Answer:
The Europeans have structured their system to provide for resolution of competition
law issues after the transaction has taken place, typically through litigation.
a. True
b. False
Answer:
Congress has delegated to the president the authority to carry out the trade policies that
it has set by statute.
a. True
b. False
Answer:
Under the FCPA, the “routine governmental action exception” is also known as the:
a. “accepted payments” exception.
b. “grease payments” exception.
c. “necessary payments” exception.
d. None of the above
Answer:
Developing nations tend to oppose extensive international environmental regulation
because it impairs their ability to profit from less-sophisticated production techniques.
a. True
b. False
Answer: