The following are all problems faced by developing countries in their business contract
relationships with wealthier nations except:
a. Lack of trained professionals to assist their governments in contract negotiations.
b. Lack of natural resources to use as collateral for credit.
c. Lack of economic bargaining power in dealing with more powerful multinationals.
d. Lack of sophisticated legal mechanisms for dealing with contract disputes.
Answer:
Under the EU merger regulations, preapproval is not needed under which of the
following conditions:
a. Where a non-EU firm is involved in the merger.
b. Where the firms are involved in agricultural trade.
c. Where the merger falls under a de minimis exception or has the benefit of a block
exception.
d. All of the above.
Answer:
Some cultures are less tolerant of vagueness and exaggeration in advertising than
others.
a. True
b. False
Answer:
The owner, purchaser, or consignee of goods or a customs broker with a written power
of attorney must enter goods delivered to a U.S. port of entry within five days of the
arrive of the goods.
a. True
b. False
Answer:
Freight forwarders are regulated by the Department of State and arrange the
transportation of goods for the importer and represent the importer with customs.
a. True
b. False
Answer:
An air waybill:
a. is a contract between the consignor (shipper) and the carrier.
b. states the freight charges and other conditions of transport.
c. is a receipt stating that the carrier has received the goods in good condition and
confirms the instructions for delivery.
d. all of the above.
Answer:
The United States is the only nation of the world that regulates advertising to children,
such as tobacco advertisements
a. True
b. False
Answer:
A foreign investor may enter into a joint venture by combining with a national of a host
country to create a new entity or by acquiring a portion of an existing local entity.
a. True
b. False
Answer:
Assume Article X is manufactured in Country Y. It is shipped to Country Z where it is
substantially transformed before being imported into the United States for resale. For
the purposes of imposing import duties under U.S. law, Article X will be considered a
product of Country Z.
a. True
b. False
Answer:
The drafters of the U.S. Constitution placed the power to regulate international trade
with the federal government and the power to tax imports with state governments.
a. True
b. False
Answer:
Regarding Thailand’s importation of cigarettes:
a. It was found that cigarettes made in the U.S. could not meet Thailand’s standards.
b. Thailand’s licensing system for cigarettes was not justified.
c. Thailand’s licensing system for cigarettes was needed to protect its domestic
industries.
d. The U.S. was not allowing Thailand to import enough U.S. cigarettes to meet
demand.
Answer:
The principles of the Treaty of Rome were based on the creation of a customs union
that would remove internal tariffs for members.
a. True
b. False
Answer:
Which of the following is NOT an example of a commonly used trade barrier?
a. a convention on imported children’s toys
b. a tariff on imported oil
c. a tax on imported clothing
d. a national industrial standard that drives up the cost of imported televisions
Answer:
The phrase to describe when a foreign government’s import regulations are not made
readily available to the public or are hidden or disguised in bureaucratic rules or
practices is:
a. Not transparent.
b. Unfair trade practices.
c. Bureaucratic procrastination.
d. Limited access.
Answer:
Quotas serve to increase the amount of imports of a product.
a. True
b. False
Answer:
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
Answer:
If A’s ocean cargo is thrown overboard in order to save a sinking ship and B’s cargo is
saved as a result, B must contribute to A for the loss.
a. True
b. False
Answer:
Common restrictions imposed on the use of technology include geographic limitations
on the licensee’s manufacturing and/or marketing activities. These types of restrictions
are also known as:
a. Field of use limitations.
b. Non-technical limitations.
c. Operating limitations.
d. Implied effort of cooperation limitations.
Answer:
All subsidies are even those that are beneficial to domestic economic and social
objectives are considered damaging to the international economy.
a. True
b. False
Answer:
U.S. courts have been reluctant to restrict gray market competition in situations where
the product’s quality being introduced to the home market is indistinguishable from its
native counterpart.
a. True
b. False
Answer:
Under admiralty jurisdiction, which of the following would not be considered a ‘vessel
in navigation’?
a. An international cargo ship
b. A tugboat that never leaves its harbor
c. A ferry capable of carrying up to 200 passengers
d. An oil-drilling rig permanently affixed to the ocean floor
Answer:
Because of the lack of international agreement to protect the ozone layer from damage
by chemical emissions into the atmosphere, firms operating in developing countries will
be able to continue to emit ozone damaging chemicals in the future.
a. True
b. False
Answer: