Regarding environmental issues and NAFTA:
a. NAFTA sets strict environmental and ecological standards for all three countries.
b. NAFTA calls for the three countries to work together to develop common
environmental standards.
c. NAFTA countries can continue to ban pesticides without informing each other.
d. NAFTA created the NAFTA Commission for Environmental Cooperation, which acts
in a purely advisory role in regard to environmental issues.
Once a group of nations has negotiated a convention, other nations cannot adopt the
treaty.
a. True
b. False
Under the European Commission’s block exemption, the parties whose agreements fall
under certain exempted categories only have to seek de minimis approval for their
transactions to be considered exempt under competition law.
a. True
b. False
Which major industrialized nation has not ratified the Kyoto Protocol, even though
nearly 200 countries have now ratified it?
a. The United States
b. Germany
c. The United Kingdom
d. Japan
As a form of foreign direct investment, a foreign branch is a business presence by the
investor in the country.
a. home
b. host
c. neighboring
d. local
In determining if a sale is less than fair value, the International Trade Administration:
a. Determines if the dumped product is being sold below its cost of production.
b. Determines the fixed and variable overhead costs of the dumped product to see what
profit the dumping company should expect.
c. Compares the foreign market value of the imported product with the U.S. price.
d. None of the above.
A documentary draft issued for the purchase of goods by ABC Co. payable to XYZ Co.,
payable upon presentation, defines ABC Co. as the , XYZ Co. as the , and the
specialized name for the documentary draft is .
a. Drawee; drawer; sight draft.
b. Drawer; drawee; sight draft.
c. Drawee; drawer; documents against acceptance.
d. Drawer; drawee; cash against documents.
The greatest protection for a firm’s copyrights and patents comes from the International
Convention for the Protection of Industrial Property.
a. True
b. False
The Chinese government practices a form of institutional discrimination through the
Hukou, which is a mechanism for determining social entitlements based on:
a. age.
b. occupation.
c. gender.
d. place of residence.
The European Court of Justice has issued a decision giving franchisor-franchisees great
flexibility in structuring.
a. True
b. False
The two types of exporting are:
a. Impartial; partial.
b. Direct; indirect.
c. Foreign; domestic.
d. Individual; joint.
Which of the following is not true regarding WTO dispute settlement procedures?
a. A complaining party can request consultations to seek a solution.
b. Even if a solution is not reached, the panel has no authority to authorize trade
sanctions.
c. Other member nations with a ‘substantial interest” in the case may make written
submissions and oral arguments before the panel.
d. An appellate body of three people will hear appeals from a panel case.
e. All of the above are untrue.
A entrusts a shipment of eel skins to an ocean carrier and obtains a bill of lading. The
carrier delivers the goods to B without asking B to produce the document. Without
knowledge of what has occurred, A sells the bill of lading to C, who is a good faith
purchaser. In this case:
a. C may not reclaim the goods because they have already been delivered by the carrier.
b. C has a cause of action against the carrier for misdelivery.
c. C has a cause of action against A for fraud.
d. The carrier is liable for a crime committed against A.
e. All of the above.
Where there are two possible classifications for goods, which is followed (in which
order):
a. The latest heading that occurs in the schedule; essential character of the goods; their
relative specificity.
b. Essential character of the goods; relative specificity; the latest heading that occurs in
the schedule.
c. Relative specificity; the latest heading that occurs in the schedule; essential character
of the goods.
d. Relative specificity; essential character of the goods; the latest heading that occurs in
the schedule.
A “free trade” nation has no barriers to trade.
a. True
b. False
The U.S. anti boycott laws are applicable to foreign affiliates of U.S. based companies.
a. True
b. False
The holder of a banker’s acceptance may convert it to cash immediately at a discount
rate, sell it on the discount market, or hold it until it matures, provided the buyer’s
account has sufficient funds to cover the transaction.
a. True
b. False
Many developing nations in order to attract foreign investment have decided not to
enforce their labor and environmental laws.
a. True
b. False
Section 301 of the Trade Act of 1974 permits the United States to unilaterally retaliate
against foreign companies that discriminate against U.S. goods or services.
a. True
b. False
Which of the following combinations of drawbacks are not applicable?
a.Same condition and manufacturing.
b.Manufacturing and substitution.
c.Substitution and same condition.
d.Any of the above combinations could occur.
Where no price term is fixed under CISG, there is no way to have a valid sales contract.
a. True
b. False