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ANSWER KEY
Chapter 34 International Law and The New World Order
Opening Case Questions
2. After the incident in Somalia, U.S. leadership seemed paralyzed whenever faced with foreign policy
3. The case in the text in Chapter 34 gives provides the following facts: (1) The United States
depends upon China to purchase its Treasury bonds and to invest in American corporations by
buying stock that allows these companies to continue to exist and to place factories and retail
outlets in China (Feldman, p. 6). (2) China owns about $1.2 trillion worth of US treasury debt
4. China world like to dominate East Asia, the South China Sea, and the Western Pacific in order
A Question of Ethics
Delusional Fantasies and Foreseeable Wars
Special Directions to the Instructor: It is very difficult to determine in advance the wide variety
of answers that students will provide for these ethical questions, especially since the students are
given a choice as to which ethical theory to use (market value ethics, social contract ethics,
Questions for Review and Discussion
1. Predictive political history is a technique for determining how world leaders will probably act in a
4. In order to deal with crimes against humanity, an official International Criminal Court (ICC) was
5. UNICATRAL consists of thirty-six nations chosen to represent the primary social, economic,
legal, and geographical areas of the globe. The goal of the commission is to cultivate the organization
and integration of international law in relation to international trade. To this end, the commission
6. The differences between the UCC and the CISG are, first, the UCC applies to contracts between
merchants and also to those that involve nonmerchants. The CISG involves only contracts between
merchants. Second, the UCC involves not only sale of goods contracts, but also other commercial
agreements, such as leases. The CISG is limited to sale of goods contracts. Third, the UCC has
7. The World Trade Organization involves three levels: the Ministerial Conference, the General
Council, and the Secretariat. The power to make key determinations under the authority of
multinational trade agreements falls under the Ministerial Conference, which meets every two years.
8. The objectives of the Dispute Settlement Understanding are to implement a number of measures
designed to improve the way trading quarrels are handled. For example, the DSU has set up a series of
precise time limits for the stages in a trade conflict. The DSU ensures that a network of comprehensive
9. The major purpose of NAFTA is to establish a trading market in North America free of the
burdens imposed by internal tariff barriers. Thus, each country within the agreement can take
10. The European Union is a coalition of European nations. The EU was created to formulate a
Cases for Analysis
1. Taking the definitions of armed conflict outlined within the Geneva Conventions together with
2. No. Arkansas was incorrect. The federal district court does have extra territorial power to mediate
this international trade dispute. The court said, “[C]ertain factors are relevant in determining whether
the contracts and interests of the United States are sufficient to support the exercise of extra territorial
jurisdiction. These include the citizenship of the defendant, the effect on United States commerce, and
the existence of a conflict with foreign law.” In this case, Arkansas, the defendant, is a U.S.
corporation. Second, there was no conflict with foreign law because Arkansas had no registration
privileges within Saudi Arabia. Finally, the court found an impact upon American commerce despite
3. Yes, the American court did have jurisdiction over an exclusively American contract affected by
the 1973 oil embargo. The court also agreed that Gulf had breached its contract with Eastern Airlines.
The court said, “With regard to the contention that the contract has become ‘commercially
impracticable,’... because of the increase in the market price of foreign crude oil and certain domestic
4. No. Armstrong is not correct. The Lanham Act is a United States statute which seeks to protect
trademark owners from infringement and counterfeit copying in foreign market places. The court
decided that Armstrong’s activities violated the Lanham Act because his actions affected United States
5. No. The WTO cannot directly sanction Japan. Instead, it can permit France to impose tariffs on
6. Godel’s purchase of the silverware would be protected by the Directive on the Protection of
Consumers in Respect of Distance Contracts (ECD) and she would be permitted to cancel the
END CHAPTER THIRTY-FOUR
