Which of the following statements is untrue regarding trade between the U.S., Canada,
and Mexico?
a. Canada and the United States are each other’s largest trading partners.
b. Mexico underwent a serious financial crisis in 1994.
c. Some key industries in Mexico are government-owned monopolies.
d. Mexico has had a traditionally open market that encourages foreign investment.
e. All of the above statements are correct.
For most products undergoing a transformation in North America, the rule of origin is
based on its tariff classification.
a. True
b. False
Which of the following statements regarding the 1994 Agreement on Import Licensing
Procedures is false?
a. Applications should not be refused because of minor errors in paperwork.
b. The WTO Import Licensing Committee must be notified if any new products will
become subject to licensing requirements.
c. It calls for the procedures to be fair, reasonable, and nondiscriminatory.
d. Where licenses are used to administer quotas, the amount of the quota already used
must be published for all importers to see.
e. All of the above are correct.
Sales representatives that perform specific acts at the specific direction of the company
they represent are considered:
a. Agents of the company.
b. Principals of the company.
c. Independent contractors of the company.
d. None of the above.
Since 2008, the Eurozone has experienced a financial crisis. Two of the weakest
economies that have negatively impacted the entire Eurozone are:
a. Germany and Greece
b. Greece and Turkey
c. Greece and Spain
d. Germany and Spain
In Japan, there are few remedies for private causes of action for damages due to
antitrust violations in civil court system.
a. True
b. False
Under common law, the “mirror image” rule under contracts, require the acceptance by
the offeree is definite and unconditional that matches the offer exactly.
a. True
b. False
With mediation as a form of dispute resolution, the parties may at any point initiate
litigation or agree to submit the dispute to arbitration.
a. True
b. False
The “escape clause” of the GATT agreement derives its name from the fact that:
a. It allows a country to escape from having trade disputes settled by GATT guidelines.
b. It permits a country to escape from its previously negotiated tariff obligations.
c. It permits a country to be relieved of having to make its balance of payments
obligations for a short period of time.
d. None of the above.
In an effort to find alternatives to environmentally harmful energy sources, the U.S.
Department of Energy established a Renewable Energy Biomass Program to encourage
the development and improvement of technology for:
a. solar energy.
b. biofuels.
c. wind turbines.
d. None of the above
Investors in developing countries face minimal risk that environmental standards in
those countries will become stricter over time and therefore is a competitive advantage
in locating manufacturing facilities there.
a. True
b. False
To obtain import relief under U.S. law, the domestic industry must prove that the
foreign producer or government has undertaken an illegal or unfair action in its export
policy.
a. True
b. False
Because The Sherman Act is a U.S. statutory law, it cannot be used to regulate or bring
an action against a foreign company.
a. True
b. False
The two types of contracts named for the point at which responsibility for loss is
transferred from seller to buyer is:
a. Point of import, point of export.
b. Origination, destination.
c. Destination, shipment.
d. None of the above; the seller always assumes the risk of shipment.
An Inchmaree clause in a marine insurance policy provides coverage to a cargo owner
when a loss is due to an error in navigation or management of the ship.
a. True
b. False
Under U.S. law, the foreign market value for antidumping duty determination is
calculated as either home market sales price, sales of like products in third countries, or
“normal value at the retail level.”
a. True
b. False
The North American Agreement on Labor Cooperation promotes:
a. Freedom of association.
b. Restrictions on child labor.
c. Equal pay for men and women.
d. Prohibition of forced labor.
e. All of the above.
In Germany, companies that employ more than 2,000 workers must have supervisory
boards with 25% representation from labor and 75% representation from shareholders.
a. True
b. False
The type of marine insurance policy that allows the exporter to issue a certificate of
insurance on a form provided by the insurance company is called:
a. Unlimited policy.
b. Shipment specific policy.
c. Discretionary policy.
d. None of the above.
The Commission of the European Communities has the power to draft both regulations
and directives and has popular support by European citizens.
a. True
b. False
is the term for goods carried aboard ships, and is the term for the price charged to
transport the goods.
a. Freight; cargo
b. Cargo; waybill
c. Cargo; freight
d. Freight; carriage