A home country refers to the country under whose laws the investing corporation was
created or is incorporated.
a. True
b. False
In order to participate in the Monetary Union, Maastricht requires European Union
members to achieve all of the following except:
a. A budget deficit of no greater than 3% of the GDP.
b. An inflation rate within 1.5% of the three best nations.
c. Exchange rate stability.
d. Maastricht requires all three.
Subsidies in non-market economy countries are difficult to determine because:
a. Their countries are secretive and do not allow economic information to escape.
b. Foreign trade is limited and there are no comparative situations.
c. These countries have few subsidies and the ones they have are very small.
d. Foreign trade decisions are made by the state trading organization and exports benefit
from many economic advantages designed to meet an overall plan.
The U.S. Court of International Trade:
a. Has authority over all tax questions dealing with Revenue Raising.
b. Hears cases dealing only with U.S. Customs issues.
c. Hears cases arising under the trade and tariff laws of the U.S.
d. Has no jurisdiction over the collection of tariffs or duties.
Letters of credit drawn with no specified expiration date are required to be submitted
within 21 days or a discrepancy occurs.
a. True
b. False
The trade sanctions against the Castro government in Cuba has been successful in
encouraging a more democratic style representation.
a. True
b. False
The first multilateral, legally enforceable agreement to establish rules for international
trade in services was:
a. The General Agreement on Trade in Services of 1994.
b. Trade in Services Act of 1947.
c. The Multilateral Agreement on Trade in Services of 1994.
d. The General Agreement on Trade in Services of 1947.
Dynatec, Inc. (a U.S. corporation based in New York) engages in oil drilling in
Colombia. Indigenous Indian tribes finds that certain rivers and streams have become
polluted as a result and that hunting and fishing are adversely affected. A U.S. lawyer
brings a lawsuit on behalf of the tribe in federal district court in New York. Dynatec
wants the action dismissed, or at least not heard by the federal court in New York. The
best bet for the case not to be heard in the federal court in New York would be for the
Dynatec lawyer to:
a. Move to dismiss for lack of personal jurisdiction.
b. Move to dismiss for lack of subject matter jurisdiction.
c. Move for a stay pending arbitration.
d. Move for dismissal based on forum non conveniens.
NAFTA’s Commission for Environmental Cooperation is committed to improving
issues related to greenhouse gas emissions, which are concentrated gasses in the Earth’s
atmosphere derived from:
a. coal mining.
b. strip mining.
c. burning fossil fuels.
d. extracting oil from shale.
The World Intellectual Property Organization, or WIPO, is a specialized agency of the:
a. United Nations.
b. World Trade Organization.
c. World Customs Organization.
d. International Chamber of Commerce.
Because passive investments create the least risk of foreign control, they are the least
regulated of foreign investments.
a. True
b. False
Country-of-origin information impacts all of the following except:
a. The applicability of a countervailing duty.
b. The applicability of a quota.
c. The tariff classification of the article.
d. The rate of duty on an import.
In order to be liable for illegal payments made to foreign officials, the payment must be
made directly to the official from the firm receiving the favors granted.
a. True
b. False
The patent protection treaty that gives a trademark holder in any signatory country a
twelve-month period of priority within which to make similar applications in other
signatory countries is known as:
a. The Patent Cooperation Treaty.
b. The International Convention for the Protection of Industrial Property.
c. The International Intellectual Property Treaty.
d. The Uniform Copyright Convention.
In order to recover for a general average claim, the claimant must prove that the ship
was in imminent danger.
a. True
b. False
Shipments to be entered must be accompanied by commercial invoices written in
English and in the native language of the country of origin to assure that there are no
discrepancies.
a. True
b. False
Which of the following is NOT an example of the transfer of technology?
a. Medical researchers at a university providing research data to a pharmaceutical
company as part of an effort to find a cure for cancer.
b. A computer programmer sharing her source code with the public via the Internet.
c. A website designer downloading a copy of a photograph for use on a website, without
the photographer’s knowledge or permission.
d. A franchisor teaching a new franchise owner how to set up and run his franchise,
using the franchisor’s methods and materials.
Upon entering goods for use or consumption, all necessary documentation and duties,
fees and taxes must be paid within five days.
a. True
b. False
Dumping does not occur when there is no market for the product in the home country.
a. True
b. False
The risk of loss due to the default of the buyer based on his or her inability to pay is
known as:
a. Commercial risk.
b. Compensatory risk.
c. Default risk.
d. Currency risk.
If the buyer’s or seller’s bank stamps its name, date, and signature on the face of a draft,
it becomes a:
a. Trade Acceptance.
b. Banker’s Acceptance.
c. Letter of Credit.
d. None of the above.
The importation of foreign-made trademarked merchandise into the U.S. for sale in
competition with the U.S. trademark owner’s own merchandise made in the U.S. is
referred to as:
a. Copycat competition.
b. Gray marketing.
c. Reverse trade advantage.
d. Black marketing.
Both the U.S. and France have ratified the Convention on Contracts for the
International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into
a contract for the sale of widgets. If a dispute arises:
a. The CISG will apply since all the requirements have been met.
b. The CISG will not apply since the requirement of “legal selection” has not been met.
c. The Uniform Commercial Code (UCC) will apply since the seller is a U.S. company.
d. Neither the UCC nor CISG will apply.