The Trade Agreements Act of 1979 contains a provision allowing standard-setting by
the U.S. government on private U.S. firms.
a. True
b. False
Answer:
In the Crosby v. National Foreign Trade Council case, the US Supreme Court ruled that
the Massachusetts law that bans state agencies from doing business with Myanmar was
valid under the
a. Commerce Clause
b. Import-Export Clause
c. Supremacy Clause
d. None of the above
Answer:
Civil litigation is the primary means of settling contract disputes in the U.S. than in
virtually any other country.
a. True
b. False
Answer:
The greatest protection offered to the holder of intellectual property rights comes from:
a. The Paris Convention.
b. The Patent Cooperation Treaty.
c. The Uniform Copyright Convention.
d. Local laws.
Answer:
The European Union is committed to a common foreign policy and individual state
sovereignty over economic issues.
a. True
b. False
Answer:
Most international licensing agreements mandate the licensee to maintain the
confidentiality of the licensor’s technology.
a. True
b. False
Answer:
The difficulties associated with private political risk insurance include all of the
following except:
a. It is difficult to obtain.
b. It is very costly.
c. The approval process is slower than with public insurance agencies.
d. The terms of many private political risk policies are limited to a very short period of
time.
Answer:
The buyer in a letter of credit transaction is called the:
a. Account Party.
b. Beneficiary.
c. Exporter.
d. Issuer.
Answer:
A treaty between two countries is said to be , and a treaty between three or more
countries is said to be
_________.
a. bitreaty; tritreaty
b. bitreaty; multitreaty
c. bilateral; multilateral
d. biratified; multiratified
Answer:
The United States Buy American Act is in violation of the principles of GATT/WTO.
a. True
b. False
Answer:
An actionable subsidy is one that:
a. causes material injury to the domestic producers of a like product in the complaining
country.
b. violates a trade agreement.
c. causes ‘serious prejudice” to the interests of the complaining country.
d. all of the above
Answer:
The “transfer pricing” provision attempts to identify the taxable income had the
transaction been between unrelated parties dealing at arm’s length.
a. True
b. False
Answer:
Ocean carriers are liable if cargo is damaged as a result of errors in the navigation of the
ship.
a. True
b. False
Answer:
In an international transaction, the seller risk is called “credit risk” and the buyer’s risk
is called “delivery risk.”
a. True
b. False
Answer:
Two examples of nontariff barriers that refer to quantitative restrictions on importing
and a total or near total ban on trade respectively are:
a. Partial embargoes, embargoes.
b. Trade seizures, limits.
c. Embargoes, quotas.
d. Quotas, embargoes.
Answer:
The difference between a common law country and a civil law country is:
a. Civil law is handled by the government while common law is handled by the people.
b. A common law country bases its laws on statutes while a civil law country uses court
cases.
c. A common law country has similar laws throughout its regions while a civil law
country is divided into areas.
d. A common law country relies heavily on precedent established by previous court
cases while a civil law country uses a comprehensive code of law.
Answer:
Which of the following classifications are treated most similarly under the laws of
Europe, the United States, and Japan?
a. Religion.
b. Nationality.
c. National origin.
d. Sex.
Answer:
Firms that assist indirect exporters and are licensed to operate under the antitrust laws
of the U.S. are:
a. Export management companies.
b. Indirect exporter merchants.
c. Export trading companies.
d. None of the above.
Answer:
The documentary collection is the process by which:
a. Buyers collect their goods at the port of entry.
b. Carriers consolidate cargo for shipment on a vessel.
c. Banks collect payment from the buyer.
d. Sellers must place their account into the hands of a debt collection agency in order to
obtain payment from the buyer.
Answer:
What defense can an accused party use when accused of IP infringement?
a. non-infringement
b. invalidity
c. unenforceability
d. all of the above
Answer:
Even if an investor proposes to bring a desired industry to a soft-currency nation, it will
generally not be possible to get currency exchange rights (preferential access to hard
currency).
a. True
b. False
Answer:
A red clause in a letter of credit is a promise by the advising bank to reimburse the
seller’s bank for loans made to the seller.
a. True
b. False
Answer:
The three regulatory schemes for a technology transfer agreement range from least
prohibitive to most prohibitive in which of the following choices:
a. Notification/registration, no regulation, preapproval.
b. Preapproval, notification/registration, no regulation.
c. No regulation, notification/registration, preapproval.
d. No regulation, preapproval, notification/registration.
Answer:
Under the Trade Promotion Authority, the President has limited powers to negotiate
trade agreements with unfriendly nations.
a. True
b. False
Answer: