The creation of a foreign subsidiary has few tax consequences to the foreign firm.
a. True
b. False
Answer:
Many countries grant preferential tariff treatment to select countries to help those
countries’ economic development.
For example, the United States grants preferential tariff treatment to:
a. Haiti and many sub-Saharan African nations.
b. the EU.
c. China.
d. all Asian nations.
Answer:
Letters of credit is a revocable commitment by a bank issued on behalf of its client and
promising to pay a specific sum of money to a beneficiary upon compliance with the
instructions of the letter of credit.
a. True
b. False
Answer:
Production sharing is intended to create U.S. jobs by encouraging the use of U.S.-made
components when assembly of a product takes place in a foreign country.
a. True
b. False
Answer:
A licensee will seek a grant back of ownership in improvements to the licensor.
a. True
b. False
Answer:
A criticism raised against NAFTA is that it serves to divide the world into regional
trading blocks.
a. True
b. False
Answer:
All of the following are basic principles of GATT except:
a. Commitment to normal trade relations.
b. Elimination of import quotas.
c. Non-reciprocal tariff increases.
d. Non-discrimination against imported goods.
Answer:
The proposed Rotterdam Rules differ from the Hague Rules in all of the following
except:
a. The expansion of carrier liability from “door to door.”
b. The elimination of errors in navigation as an exception from liability.
c. The elimination of the requirement of written bills of lading.
d. The elimination of perils of the sea as an exception from liability.
Answer:
International licensing agreements are contracts by which the holder of intellectual
property grants certain rights in that property to a foreign firm for a specified period of
time.
a. True
b. False
Answer:
ISO 9000 refers to:
a. Standards used for assuring product quality through product design and
manufacturing process.
b. A series of import regulations imposed by the European Union.
c. Japanese trade restrictions against U.S. telecommunications companies that were
eventually repealed.
d. A trade agreement established between the U.S. and the European Union that will
significantly reduce barriers to trade.
Answer:
The principle that limits restrictions on trade to the lowest level possible to achieve the
goals for which they are imposed is:
a. Trade barrier limitation principle.
b. Fair trade principle.
c. Principle of least-restrictive trade.
d. Principle of nominal trade barriers.
Answer:
Countries must rely on internationally accepted standards or recommendations for the
protection of their plants, animals, and foodstuffs. a. Japan’s keiretsu b. Agricultural Act
of 1948 c. The Law on the Entry and Exit Animal and Plant Quarantine d. Codex
Alimentarius
Answer:
Sectoral issues are issues of concern to a particular industrial, agricultural, or service
sector of the economy.
a. True
b. False
Answer:
If an importer provides tools, dies, or molds to a foreign supplier free of charge to be
used in the manufacturer of the imported items, the value of these assists will not be
included in transaction value.
a. True
b. False
Answer:
The dutiable value of imported goods includes the price actually paid or payable when
sold for exportation plus all of the following items if not included in the purchase price,
with the exception of:
a. Royalty paid by the buyer as a condition of sale.
b. Proceeds from the resale of the goods that accrues to the seller.
c. Selling commission incurred by the buyer.
d. Export fees paid by the seller.
Answer:
With regard to global working conditions of child labor and prison labor, which of the
following statements is true?
a. Efforts to develop WTO trade rules that tie labor standards to international trade have
borne fruit in the new GATT understandings between industrialized and developing
nations.
b. Section 301 of the U.S Trade Act of 1974 has been amended to impose tariffs on
goods that are produced by child labor or prison labor.
c. A few companies, such as Levi-Strauss & Co., have adopted global sourcing
guidelines to use only suppliers who do not make use of child or prison labor.
d. Since NAFTA, Mexico has made great strides in making sure that children below the
age of 14 are kept in school and not used in manufacturing operations.
Answer:
Air waybills are governed by the Uniform Commercial Code.
a. True
b. False
Answer:
The Europeans view the monopoly in a patent as a danger to competition that should be
minimized as much as possible.
a. True
b. False
Answer:
Treaties are negotiated by:
a. just the executive branch.
b. just the House and Senate.
c. the executive branch and the Senate.
d. the executive branch, the House, and the Senate.
Answer:
According to the EEOC, under Title VII as amended in 1991, a U.S. company is liable
for unlawful discrimination against U.S. citizen/employees in which of the following
cases?
a. The foreign subsidiary is 100% owned by a U.S. parent company.
b. The foreign subsidiary is at least 50% owned by the U.S. parent company.
c. The foreign subsidiary is 25% owned by a U.S. company.
d. A, B, and C are all situations where a U.S. company may be liable under Title VII.
Answer:
Which of the following statements about prison labor is true?
a. Prison labor is used in virtually all countries around the globe.
b. Prison labor is practiced only in China.
c. Prison labor has been abolished in all countries.
d. Prison labor is used only in emerging economies.
Answer:
The forum for public international law disputes is:
a. The World Forum.
b. International Court of Justice.
c. The League of Nations.
d. The Hague.
Answer:
Shipment contracts are more common in international trade than destination contracts.
a. True
b. False
Answer:
U.S. countervailing duty statutes:
I. Countervail all export subsidies.
II. Countervail all domestic subsidies.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer: