Question 1

The primary focus of the GATT and WTO negotiations has been:

Accepted Answer

A)  to reduce trade barriers
B)  to increase anti-competitive behaviors
C)  to promote the use non-tariff barriers
D)  to develop world-wide rules on human rights
E)  none of the other choicesF) A) and C)
G) B) and D)

Question 2

The World Trade Organization works to bring together producers and customers from different countries by running large "trade shows" around the world.

Accepted Answer

A) True 
 B)False

Question 3

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Accepted Answer

A)  steel
B)  toys
C)  paper
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) A) and B)
G) A) and C)

Question 4

The standard forum selection clause in international business contracts specifies that in the event of a dispute the matter will be settled at the United Nations Commission on Trade.

Accepted Answer

A) True 
 B)False

Question 5

When ownership is shared between foreign partners it is known as a(n) :

Accepted Answer

A)  wholly owned subsidiary
B)  joint venture
C)  licensing agreement
D)  foreign partnership
E)  joint subsidiaryF) A) and B)
G) B) and E)

Question 6

In the U.S. ,there are no groups that insure investors against the risk of loss--these risks are too great.

Accepted Answer

A) True 
 B)False

Question 7

A U.S.manufacturing firm that has made significant use of contract manufacturing is the Nike shoe company.

Accepted Answer

A) True 
 B)False

Question 8

FACT PATTERN 22-1
Naida Baronowski is an American fashion designer who has a design firm in Chicago.Naida has been successful in the U.S.and wants to expand her operation overseas.She hopes to open shops in Paris,Milan,Madrid,Rome,Vienna,and Moscow in the next several years.
Naida is unfamiliar with foreign operations.She comes to you,her attorney,for advice about how she should pursue her goal of becoming an international fashion company.
-Refer to Fact Pattern 22-1.Naida signs an agreement with an Italian firm stating that it will manufacture some clothing,and that Naida will sell it in shops she establishes in various Italian cities.Such an arrangement is best described as:

Accepted Answer

A)  a wholly owned subsidiary
B)  a franchise
C)  a joint venture
D)  a corporation
E)  a licensing agreementF) A) and D)
G) A) and B)

Question 9

The International Court of Justice has the power to decide international disputes.However,standing to bring suit is limited to:

Accepted Answer

A)  aggrieved individuals--except businesses--with no acceptable neutral forum for dispute resolution
B)  aggrieved parties--but only in commercial transactions--with disputes that cannot be resolved by arbitration
C)  aggrieved parties--both individuals and businesses--but only if they have a specific clause in their contract calling for resolution by the International Court
D)  only those countries which do not have a well-defined judicial system
E)  none of the other choicesF) C) and E)
G) B) and D)

Question 10

In United States v.Mead Corporation,where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff,the Supreme Court held that:

Accepted Answer

A)  the change in classification was unjustified so Mead did not owe any tariffs
B)  the case should be thrown out for lack of evidence
C)  all rulings by Customs are equivalent to federal law so Mead had no case
D)  Mead should pay a 2% tariff as a compromise
E)  none of the other choices are correctF) B) and C)
G) C) and D)

Question 11

"Dumping" is the practice of:

Accepted Answer

A)  importing goods that do not meet U.S.environmental standards
B)  importing goods that do not meet U.S.safety standards
C)  U.S.companies outsourcing undesirable jobs to other countries
D)  foreign companies selling goods at higher prices in the U.S.market than in their home markets
E)  none of the other choices are correctF) C) and D)
G) B) and C)

Question 12

An ad valorem tariff is:

Accepted Answer

A)  duty or tax levied by a government on an exported good
B)  fixed tax or duty on each unit of the product
C)  tax based on a percentage of the price of the product
D)  applied only to such products as munitions,alcohol,and tobacco products
E)  none of the other choicesF) A) and D)
G) A) and E)

Question 13

The _______________ is the principal court of the United Nations.

Accepted Answer

A)  World Intellectual Property Organization
B)  International Monetary Fund
C)  World Bank
D)  Commission on International Trade Law
E)  none of the other specific choices are correctF) A) and D)
G) A) and C)

Question 14

Duty-free ports are ports of entry that assess special duties or tariffs on products entering them that are less than the duties imposed on general trade zones.

Accepted Answer

A) True 
 B)False

Question 15

International businesses face risks that include:

Accepted Answer

A)  political risks
B)  financial risks
C)  regulatory risks
D)  financial and regulatory risks
E)  political,financial and regulatory risksF) A) and D)
G) A) and C)

Question 16

The World Trade Organization replaced the:

Accepted Answer

A)  the United Trade Organization
B)  the International Trading Union
C)  the General Agreement on Tariffs and Trade
D)  the European Trade Organization
E)  the Unified Trade GroupF) B) and E)
G) B) and D)

Question 17

A foreign trade zone is where businesses can import goods for processing,assembly,or warehousing,without paying duties until the finished products are sent to the market.

Accepted Answer

A) True 
 B)False

Question 18

Products made from endangered species are prohibited from being imported into the U.S.for sale.

Accepted Answer

A) True 
 B)False

Question 19

The International Trade Commission may impose an antidumping duty on goods imported to the U.S.that are being sold for less than the price charged in the home market.

Accepted Answer

A) True 
 B)False

Question 20

International business is often defined to include:

Accepted Answer

A)  business transactions that involve two or more countries
B)  the movement of services,capital,and personnel across national boundaries
C)  the transactions of multinational firms
D)  business transactions that involve two or more countries and the movement of services,capital,and personnel across national boundaries
E)  business transactions that involve two or more countries and the movement of services,capital,and personnel across national boundaries and the transactions of multinational firmsF) A) and D)
G) B) and D)

Exam 22: The International Legal Environment of Business

An ad valorem tariff is:

Correct Answer
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Correct Answer
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The World Trade Organization works to bring together producers and customers from different countries by running large "trade shows" around the world.

Correct Answer
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International business is often defined to include:

Correct Answer
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The International Trade Commission may impose an antidumping duty on goods imported to the U.S.that are being sold for less than the price charged in the home market.

Correct Answer
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When ownership is shared between foreign partners it is known as a(n) :

Correct Answer
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The International Court of Justice has the power to decide international disputes.However,standing to bring suit is limited to:

Correct Answer
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"Dumping" is the practice of:

Correct Answer
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In United States v.Mead Corporation,where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff,the Supreme Court held that:

Correct Answer
verified

A U.S.manufacturing firm that has made significant use of contract manufacturing is the Nike shoe company.

Correct Answer
verified

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Correct Answer
verified

Duty-free ports are ports of entry that assess special duties or tariffs on products entering them that are less than the duties imposed on general trade zones.

Correct Answer
verified

The World Trade Organization replaced the:

Correct Answer
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In the U.S. ,there are no groups that insure investors against the risk of loss--these risks are too great.

Correct Answer
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The _______________ is the principal court of the United Nations.

Correct Answer
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International businesses face risks that include:

Correct Answer
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The standard forum selection clause in international business contracts specifies that in the event of a dispute the matter will be settled at the United Nations Commission on Trade.

Correct Answer
verified

The primary focus of the GATT and WTO negotiations has been:

Correct Answer
verified

Products made from endangered species are prohibited from being imported into the U.S.for sale.

Correct Answer
verified

A foreign trade zone is where businesses can import goods for processing,assembly,or warehousing,without paying duties until the finished products are sent to the market.

Correct Answer
verified

Exam 22: The International Legal Environment of Business

An ad valorem tariff is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The World Trade Organization works to bring together producers and customers from different countries by running large "trade shows" around the world.

Correct AnswerverifiedShow Answer

International business is often defined to include:

Correct AnswerverifiedShow Answer

The International Trade Commission may impose an antidumping duty on goods imported to the U.S.that are being sold for less than the price charged in the home market.

Correct AnswerverifiedShow Answer

When ownership is shared between foreign partners it is known as a(n) :

Correct AnswerverifiedShow Answer

The International Court of Justice has the power to decide international disputes.However,standing to bring suit is limited to:

Correct AnswerverifiedShow Answer

"Dumping" is the practice of:

Correct AnswerverifiedShow Answer

In United States v.Mead Corporation,where Mead sued Customs when it changed the classification of the planners Mead imported which resulted in Mead having to pay a 4% tariff,the Supreme Court held that:

Correct AnswerverifiedShow Answer

A U.S.manufacturing firm that has made significant use of contract manufacturing is the Nike shoe company.

Correct AnswerverifiedShow Answer

The United States,Japan,Canada,countries of the European Union,and other industrialized nations agreed to eliminate tariffs completely among themselves in which of the following industries:

Correct AnswerverifiedShow Answer

Duty-free ports are ports of entry that assess special duties or tariffs on products entering them that are less than the duties imposed on general trade zones.

Correct AnswerverifiedShow Answer

The World Trade Organization replaced the:

Correct AnswerverifiedShow Answer

In the U.S. ,there are no groups that insure investors against the risk of loss--these risks are too great.

Correct AnswerverifiedShow Answer

The _______________ is the principal court of the United Nations.

Correct AnswerverifiedShow Answer

International businesses face risks that include:

Correct AnswerverifiedShow Answer

The standard forum selection clause in international business contracts specifies that in the event of a dispute the matter will be settled at the United Nations Commission on Trade.

Correct AnswerverifiedShow Answer

The primary focus of the GATT and WTO negotiations has been:

Correct AnswerverifiedShow Answer

Products made from endangered species are prohibited from being imported into the U.S.for sale.

Correct AnswerverifiedShow Answer

A foreign trade zone is where businesses can import goods for processing,assembly,or warehousing,without paying duties until the finished products are sent to the market.

Correct AnswerverifiedShow Answer

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