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Q:
What are the advantages of a licensing arrangement for an international business?
Q:
What is a franchise?
Q:
What are the reasons for a company to create a foreign subsidiary in a host country?
Q:
Discuss the Agreement on Trade-Related Aspects of Intellectual Property Rights.
Q:
What are the major institutions of the European Union?
Q:
What effect has the International Court of Justice had on settling international disputes?
Q:
Discuss the International Court of Justice in brief.
Q:
Discuss the primary goals of the United Nations.
Q:
Explain what is expropriation and nationalization.
Q:
What is the modern traditional theory of expropriation, and what are the problems associated with it?
Q:
The U.S. Export Control and Related Border Security Assistance Program, in order to control the export of technology flowing into dangerous hands, has issued three "red flags" that exporters should be aware of. Identify and discuss these "red flags".
Q:
International law is generally classified as either public or private international law. Compare and contrast these two types.
Q:
What are the criticisms the FCPA faces for its strict prohibition of American businesses bribing officials of other countries?
Q:
Discuss the role of intermediaries under the FCPA.
Q:
What are the current penalties for violation of the Foreign Corrupt Practices Act?
Q:
How have U.S. businesses enhanced their business position with foreign countries without paying bribes and violating the Foreign Corrupt Practices Act?
Q:
The Foreign Sovereign Immunities Act ______:
A. codifies the modern-traditional theory of trade and tariffs.
B. provides immunity for private acts.
C. rejects immunity for commercial acts carried on in the countries trading with the U.S.
D. provides immunity for commercial acts having direct effects in the U.S.
E. rejects immunity for commercial acts carried on in the U.S.
Q:
To sue a foreign firm in the United States, the plaintiff must:
A. establish maximum contacts between the foreign defendant and the forum court.
B. demonstrate that exercise of personal jurisdiction over the defendant will be ineffective.
C. comply with the terms of the Hague Service Convention when serving notice of the lawsuit.
D. comply with the terms of the Convention of International Sale of Goods when filing a lawsuit.
E. establish legal representation in the area of personal jurisdiction.
Q:
Which of the following is true concerning the arbitration of international disputes?
A. Arbitration is not widely practiced and, hence, is not an easily available option.
B. Arbitration creates more publicity than litigation.
C. Arbitration is complex alternative for the parties involved.
D. Arbitration can be compelled, where previously agreed upon by the parties.
E. Arbitration has been proven to have limited effectiveness concerning international disputes.
Q:
The World Intellectual Property Organizations Arbitration and Mediation Center hears cases involving:
B. sovereign immunity.
C. international trademark and trade secret.
domain name and cybersquatting.
The World Intellectual Property Organization (WIPO) Arbitration and Mediation Center hears cases involving domain name disputes and cybersquatting.
Q:
The Foreign Sovereign Immunities Act codified which of the following?
A. Foreign governments cannot be sued under any cause of action within the United States.
B. Foreign governments can be sued for most causes of action except when participating in commercial acts.
C. Foreign governments cannot be sued for most causes of action but can be sued when participating in commercial acts.
D. Sovereign immunity was abolished making foreign governments liable for all acts committed within the United States, whether commercial or not.
E. Sovereign immunity held that governments could be held liable for nationalization of assets.
Q:
Which of the following is true of a joint venture?
A. It takes place when a domestic firm may choose to grant a foreign firm the means to produce and sell its product.
B. It takes place when a company launches another company which it partially or completely owns in a foreign country.
C. It takes place when a company designates a national firm or individual of the host country as its legal representative.
D. It takes place when a company invests in a country by engaging in business with an entity from that country.
E. It takes place when a company merges with a company from the host country.
Q:
The _____ grants jurisdiction to U.S. federal district courts over "any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States."
A. Federal Torts Act
B. Alien Tort Claims Act
C. Foreign Tort Claims Act
D. International Tort Act
E. Tort Claims in International Trade Act
Q:
Under the doctrine of sovereign immunity, the foreign sovereign claims to be immune from suit entirely based on _____.
A. its status as a commercial center.
B. its membership with the World Trade Organization.
C. its status as a state.
D. its political and economic conditions.
E. its commercial acts.
Q:
_____ is defined as the supreme, absolute, and uncontrollable power by which any state is governed.
A. Sovereignty
B. Government
C. Integrity
D. Fraternity
E. Federation
Q:
Grimmy Fast Food Ltd., located in New York, grants Truffle Eateries, a chain of restaurants in Paris, permission to produce and sell Grimmy's famous pizzas. Truffle will launch Grimmy's in Paris and sell the products. This is an example of which of the following?
A. Foreign subsidiary
B. Direct foreign investment
C. Sovereign immunity
D. Franchise
E. International trade
Q:
Which of the following is a reason a firm may enter a licensing agreement?
A. Licensing allow firms to enter a foreign market without direct foreign investments.
B. A firm enters a licensing agreement to expand once it has substantial capital.
C. Licensing is the next step a firm must take, after it has established sufficient research and development.
D. Licensing is a technique that firms use when applying management skills and marketing strategies.
E. Licensing agreement is a risk free method to expand in foreign markets.
Q:
Which of the following is true of a foreign subsidiary?
A. A foreign subsidiary has fewer formalities in its creation and operation.
B. A foreign subsidiary allows the parent company to have greater control.
C. A foreign subsidiary is one of the cost-effective ways to expand business in foreign markets.
D. A foreign subsidiary must be a national of the host country.
E. A foreign subsidiary is a risk-free alternative that most corporations adopt for global expansion.
Q:
In many cases, the only legal or political means a firm has to invest directly in a foreign country is to engage in _____, with an entity from the host country.
A. a foreign subsidiary arrangement
B. a franchise agreement
C. a license contract
D. a merger
E. a joint venture
Q:
The _____ provides for a dispute settlement mechanism that makes it easier to resolve trade disputes between the United States, Mexico, and Canada.
A. Convention on the International Sale of Goods
B. North American Free Trade Agreement
C. Central America-Dominican Republic Free Trade Agreement
D. Foreign Corrupt Practices Act
E. General Agreement on Tariffs and Trade
Q:
Transactions using _____ involve, in addition to a seller and buyer, an issuing bank in the buyer's country.
A. a bill of lading
B. a bill of exchange
C. an irrevocable promissory note
D. a negotiable instrument
E. an irrevocable letter of credit
Q:
When a buyer receives a receipt from a carrier stating that the goods ordered have been shipped to the designated place for delivery, the receipt is called _____.
A. an irrevocable letter of credit
B. a bill of exchange
C. a bill of lading
D. an identity note
E. a promissory note
Q:
Which type of a contract can be adopted in case of a domestic firm granting a foreign firm the means to produce and sell its product?
A. Transfer contract
B. Franchise contract
C. Promotion contract
D. Foreign investment contract
E. Foreign subsidiary contract
Q:
Which of the following is true of licensing arrangements?
A. Licensing requires international businesses to make direct foreign investment to enter foreign markets.
B. Licensing often is used by firms as an expansion technique in the domestic market.
C. Licensing agreements must follow the local laws where they operate.
D. Licensing agreements are governed by international trade and business laws.
E. Licensing technology requires substantial capital to expand a company's market.
Q:
______ opened up many opportunities for business between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States.
A. North America Free Trade Agreement
B. Central America- Dominican Republic Free Trade Agreement
C. U.S.-Colombia Free Trade Agreement
D. Uruguay Round Agreements
E. Convention on the International Sale of Goods
Q:
_____ decides the nature and parameters of EU law.
A. The Parliament
B. The Commission
C. The Court of Justice
D. The Council
E. The Council of Ministers
Q:
Which of the following is true of the Convention on the International Sale of Goods?
A. It outlines standard international practices for the sale of goods.
B. It encourages international trade by maintaining stable foreign exchange rates.
C. It promotes economic development in poor countries by making loans to finance necessary development projects and programs.
D. It ascertains what public international law is.
E. It grants jurisdiction to U.S. federal district courts over "any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States."
Q:
With respect to the sale of goods, which of the following is true as per the CISG?
A. All contracts for the sale of goods must be written.
B. All contracts for the sale of goods must be in the oral form.
C. Contracts for the sale of goods need not be in writing.
D. The parties should sign the contract in the presence of attorneys.
E. Contracts concerning sale of goods above $500 must be in writing.
Q:
Which of the following is a major institution of the European Union?
A. The Secretary Council
B. The International Court of Justice
C. The Council of Members
D. The House of Representatives
E. The Council of Ministers
Q:
The Charter of the United Nations sets forth as its primary goal:
A. combating corruption and corrupt practices in other countries.
B. providing individual measures for the prevention and removal of threats to peace.
C. ensuring that justice is delivered at all levels in all member countries.
D. implementing a just and fair international law that guides international commercial transactions.
E. eradicating cyber-squatting and criminal practices involving the Internet, in all member countries.
Q:
The World Trade Organization was created as a result of the:
A. Geneva Convention.
B. Uruguay Round.
C. Bretton-Woods Conference.
D. Asian-Pacific Round.
E. Convention of International Sale of Goods
Q:
The _____ encourages international trade by maintaining stable foreign exchange rates and works closely with commercial banks to promote orderly exchange policies with members.
A. World Bank
B. World Trade Organization
C. General Agreement in Tariffs and Trade
D. International Monetary Fund
E. Convention on International Sale of Goods
Q:
In 1994, the Uruguay Round incorporated all of the following principles from the General Agreement on Tariffs and Trades except:
A. equalization of import quotas.
B. national treatment.
C. non-discrimination.
D. elimination of trade barriers.
E. reducing tariffs.
Q:
Which of the following is true of the Commission of the European Union?
A. It coordinates the policies of the member states in a variety of areas from economics to foreign affairs.
B. It is composed of elected representatives from each member state.
C. It plays an active role in drafting legislation that has an impact on the daily lives of its citizens.
D. It has joint power with the Council over the annual budget of the European Union.
E. It consists of individuals who represent the will and interests of the entire EU, rather than specific national concerns.
Q:
Which of the following statements is true of sources of international law?
A. Public international law examines relationships between businesses.
B. Public international law uses rules that are binding on all countries in the international community.
C. Private international law examines relationships created by private individuals.
D. Private international law utilizes U.S. law to resolve international business disputes.
E. Public international law examines the relationships between different populations.
Q:
The International Court of Justice is also called the:
A. World Court.
B. Supreme World Court.
C. World Chancery Court.
D. Court of International Acclaim.
E. World Trade Court.
Q:
Which of the following is true of the International Court of Justice?
A. Private parties and corporations have access to the court and can directly present their claims.
B. Using legal devices, firms and individuals can compel the U.S. government to press claims on their behalf before the Court.
C. Only countries that have submitted to the Court's jurisdiction may be parties.
D. The Court has enforcement authority and does not rely on diplomacy or economic sanctions against countries.
E. It is compulsory for all countries to accept the Court's jurisdiction, whether or not the use of the Court suits their interests.
Q:
The International Court of Justice:
A. is made up of nine judges.
B. allows all nations to initiate a case before it.
C. hears cases of countries that have submitted to the Court's jurisdiction.
D. can render opinions only when faced with an actual case.
E. has been a major force in settling disputes since it began functioning.
Q:
Infractions of international law are most frequently settled by:
A. diplomacy.
B. formal charges.
C. economic sanctions.
D. ICJ decision.
E. penalties and damages.
Q:
In the United States, the counterpart of expropriation is called:
A. nationalism.
B. zoning.
C. police powers.
D. eminent domain.
E. confiscation
Q:
Generally, international law is classified as:
A. public international law.
B. criminal international law.
C. common international law.
D. civil international law.
E. business international law.
Q:
Which of the following is a risk involved with regard to the sale of U.S. strategic products and technology abroad?
A. Import controls
B. Material controls
C. Export controls
D. Sales controls
E. Transaction controls
Q:
Export controls:
A. function in the same way as import controls.
B. are placed on U.S. products and technology abroad.
C. are the confiscation of foreign-owned property by a government.
D. are similar to nationalization.
E. are the power of eminent domain.
Q:
The Wassanaar Arrangement was entered into by 33 countries in order to control:
A. monetary value fluctuations encountered by nations when conducting international trade.
B. the spread of military and dual use technology to unstable nations.
C. the quality control of food and perishables between nations with different individual quality control regulations.
D. price gouging by dominant countries when dealing with smaller or weaker countries.
E. the impact of corruption on international trade, investments, and business policies.
Q:
What does the term knowing' refer to under the FCPA?
A. Conscious disregard and deliberate indifference.
B. Working with a country that is indexed for high corruption practices.
C. Stating in an official document that all parties involved are free from corrupt practices.
D. Settlement of payments as per the contract.
E. Understanding of the antibribery provisions and the laws that prohibit corruption.
Q:
Which of the following is not a permissible payment for routine government action under the Foreign Corrupt Practices Act?
A. Obtaining permits.
B. Processing visas.
C. Travel expenses to a foreign official for performing a contractual obligation.
D. Scheduling inspections associated with the transit of goods across the country.
E. Loading and unloading cargo.
Q:
_____ is used in the context of international law as the seizure of foreign-owned property by a government.
A. Nationalization
B. Possession
C. Power of eminent domain
D. Export Controls
E. Expropriation
Q:
When a government assumes ownership of confiscated property, it also includes the process of _____.
A. nationalization
B. expropriation
C. power of eminent domain
D. mortgage
E. exclusion
Q:
Parties can use arbitration to avoid the unwanted publicity that often results in open court proceedings.
Q:
The World Intellectual Property Organization (WIPO) Arbitration and Mediation Center hears cases involving domain name disputes and cyber-squatting.
Q:
The arbitration process likely is more will be more streamlined and easier for the parties to understand than litigating the dispute in a foreign court.
Q:
Which of the following is true of the Foreign Corrupt Practices Act of 1977?
A. It prosecutes any foreign official body that bribes American officials.
B. It is designed to watch over the import-export transactions.
C. It prohibits American citizens from doing business with countries that have a high level of corruption.
D. It is designed to stop bribery of foreign officials by American citizens.
E. It governs the corrupt practices in countries doing business with American citizens.
Q:
Intermediaries, under the FCPA, are:
A. given restricted rights to make payments to a foreign official.
B. allowed to make payments to a foreign official.
C. prohibited from making payments that can go to a foreign official.
D. prohibited from all types of international trade.
E. a recommended mode to make payments to foreign officials.
Q:
The notion of sovereign immunity has always been, and continues to be, absolute in its application.
Q:
Under the doctrine of sovereign immunity, the foreign sovereign claims to be immune from suit entirely based on its status as a state.
Q:
In suing a foreign firm in the United States, a plaintiff must comply with the terms of the Convention of International Sale of Goods.
Q:
The Hague Service Convention is a treaty designed to provide a simpler way to serve process abroad when suing foreign businesses.
Q:
Irrevocable letters of credit have little effect on reducing uncertainties in international transactions.
Q:
By using of a letter of credit, the buyer need not pay the seller for goods prior to shipment and the seller can obtain payment for the goods immediately upon shipment. Use of a letter of credit in the transaction reduces the uncertainties involved.
Q:
Irrevocable letters of credit do not recognize the concept of substantial performance.
Q:
A licensing agreement allows an international business to enter a foreign market without any direct foreign investment.
Q:
The Alien Tort Claims Act was enacted 20 years ago to address tort actions arising from the recent initiatives in global trade.
Q:
A nationalization of assets is most likely to be considered an act in the "public interest" and immune from suit under the FSIA.
Q:
The CISG applies to contracts for the commercial sale of goods (consumer sales for personal, family, or household use are excluded) between parties whose businesses are located in different nations.
Q:
The Convention on the International Sale of Goods resolves all areas of contract law.
Q:
If the United States enters into a trade deal with Costa Rica, with Costa Rica as the seller, and an irrevocable letter of credit is involved, the issuing bank will be located in Costa Rica.
Q:
The issuing bank's commitment to pay is given to the seller directly in the case of a letter of credit.
Q:
The Convention on the International Sale of Goods (CISG) outlines standard international practices for the sale of goods.
Q:
Public international law examines relationships created by commercial transactions.
Q:
Under the CSIG, parties are not allowed to negotiate contract terms and cannot opt out of the CISG.