Deck 35: International Business Law

Question 1

In 1977,the United States passed the Foreign Corrupt Practices Act (FCPA),which is a federal statute designed to provide executives of American companies with rules and restrictions relating to paying persons in foreign countries to expedite business in these foreign nations.

Answer 1

True

Question 2

The International Labour Organization (ILO)is responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future.

Answer 2

False

Question 3

Although the use of English as the language of business is increasing,cultural differences,disparate legal systems,and fluctuating exchange rates remain major obstacles to conducting business internationally.

Answer 3

True

Question 4

In 1994,12 countries in Europe formed what is expected to eventually become "Greenland," an economic and political integration of the members into one entity.

Question 5

Confiscation,does not involve the host country's taking title to all of the assets of the foreign company.

Question 6

The World Bank works closely with the International Monetary Fund to ensure that developing countries have access to funds in order to stimulate their economies.

Question 7

Companies that conduct business in several countries face the challenge of having to comply with a variety of legal systems that sometimes conflict with one another.

Question 8

Copyrights are a statutory privilege granted by a nation to inventors for a fixed period of years to exclude all others from manufacturing,using,or selling a patented product without permission from the inventor.

Question 9

The study of organizations that regulate personal and commercial activity and facilitate international trade is not within the scope of international law.

Question 10

The principle of law that holds that the courts of one country should refrain from deciding cases involving the acts of persons from another country,is known as the doctrine of:

A) comity.
B) triviality.
C) commune.
D) velocity.

Question 11

In modern times,customary practices and treaties are the major sources of international law and these are recognized in the:

A) Statute of the European Court of Justice.
B) Statute of the International Court of Justice.
C) International Labour Organization.
D) Supreme Court of the United States.

Question 12

In modern times,customary practices and treaties are the major sources of international law which are recognized in the Statute of the International Court of Justice.

Question 13

______________ is the broad study of the legal systems of major countries,treaties,practices,tariffs and nontariff trade barriers,and import and export quotas.

A) International law
B) Interpretation of Statutes
C) Foreign law
D) Federal law

Question 14

The philosophy of Roman international law controlling trade and commerce in a peaceful way came to be known as:

A) Max Roman.
B) Romana law.
C) Pax Romana.
D) Roman Philosophy.

Question 15

A transnational institution's purpose is to maintain regular transactions in trade.

Question 16

In addition to trade sanctions and embargoes,at times a country will impose a tariff on imports or exports to attain economic results.

Question 17

The increasing volume of international trade and tourism,the globalization of the marketplace,the growing incidence of multinational business organizations,and cultural exchanges have given rise to the need for:

A) interpretation of statutes.
B) foreign law.
C) trade union law.
D) international law.

Question 18

In some countries outside of the United States,it is perfectly acceptable that there will be payments made to individuals in order to secure their business.

Question 19

Domestication occurs when the host country takes title to all of the assets of the foreign company.

Question 20

In order to promote trade,the United States,Canada,and Mexico have agreed to follow the rules of the North American Free Trade Agreement.

Question 21

The organization created in 1944 to provide relief to countries suffering from the ravages of World War II was the:

A) World Bank.
B) International Monetary Fund.
C) World Trade Organization.
D) General Agreement on Tariffs and Trade.

Question 22

An act of the host country's taking title to all of the assets of the foreign company is called:

A) capitalization.
B) embargo.
C) domestication.
D) expropriation.

Question 23

Trade among nations remains a vital ingredient to the economic health of the world's population.While countries are sovereign and create and interpret their own sets of laws,the goal is that trade be governed by:

A) nongovernmental organizations.
B) international organizations.
C) trade unions.
D) transnational institutions.

Question 24

In 1947,an international agreement was entered into by a multitude of nations,called the:

A) North American Free Trade Agreement.
B) World Trade Organization.
C) General Agreement on Tariffs and Trade.
D) International Monetary Fund Agreement.

Question 25

When the host country mandates that at least partial ownership of the foreign company be sold to local citizens or companies prior to the foreign company's conducting business within the host country's borders,then:

A) domestication occurs.
B) expropriation occurs.
C) confiscation occurs.
D) localization occurs.

Question 26

All of the following are transnational institutions EXCEPT the:

A) Foreign Corrupt Practices Association.
B) World Trade Organization.
C) International Monetary Fund.
D) World Bank.

Question 27

The organization with responsibility to maintain a stable environment for the economies and the currencies of its members is the:

A) World Trade Organization.
B) International Monetary Fund.
C) General Agreement on Tariffs and Trade.
D) North American Free Trade Agreement.

Question 28

To attain economic results,such as protecting domestic industries or facilitating the production of certain crops,at times a country will impose a(n):

A) embargo.
B) tariff.
C) capital punishment.
D) bylaw.

Question 29

The work of authors or creators of literary,artistic,or musical works and computer programs are protected under:

A) patents.
B) copyrights.
C) trademarks.
D) know-how.

Question 30

The ____________ is a specialized agency of the United Nations and an international organization that administers numerous treaties concerning protection of intellectual property rights.

A) World Bank
B) International Monetary Fund
C) World Trade Organization
D) World Intellectual Property Organization

Question 31

The commission or organization that is responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future is known as the:

A) North American Free Trade Organization.
B) World Trade Organization.
C) General Agreement on Tariffs and Trade.
D) International Monetary Fund.

Question 32

A foreign licensee must meet certain product quality requirements so that the use of the mark does not deceive the consumer or lessen the value of the mark to the:

A) agent.
B) owner.
C) transferor.
D) customer.

Question 33

The Foreign Corrupt Practices Act (FCPA)defines ___________ as "connoting an evil motive or purpose,intent to wrongly influence the recipient."

A) tariff
B) boycott
C) corruptly
D) embargo

Question 34

A federal statute designed to provide executives of American companies with rules and restrictions relating to paying persons in foreign countries to expedite business in these foreign nations is the:

A) Civil Rights Act.
B) Trade Union Act.
C) Intellectual Property and Real Act.
D) Foreign Corrupt Practices Act.

Question 35

The monetary currency of the European Union is a(n):

A) pound.
B) dollar.
C) euron.
D) euro.

Question 36

In 1994,12 countries in Europe formed an economic and political integration of the members into one entity which is expected to eventually become:

A) Greenland.
B) Euroland.
C) United Europe.
D) Trans-Europe.

Question 37

____________ property includes both artistic as well as industrial property rights.

A) Tangible
B) Intellectual
C) Public
D) Real

Question 38

Countries that enact laws prohibiting trade with specific countries are said to be using trade sanctions,sometimes referred to as:

A) embargoes.
B) churnings.
C) superfund.
D) tariffs.

Question 39

At times,citizens of a particular country refuse to purchase goods made by businesses located in other countries.This action,whether supported by the government or not,is referred to as a:

A) confiscation.
B) boycott.
C) domestication.
D) localization.

Question 40

A statutory privilege granted by a nation to inventors for a fixed period of years to exclude all others from manufacturing,using,or selling a product without permission from the inventor is a:

A) copyright.
B) trademark.
C) patent.
D) grant.

Question 41

What is the Doctrine of Comity?

Question 42

In general,what is the attitude of business executives toward the Foreign Corrupt Practices Act?

Question 43

Describe the purpose of the International Monetary Fund,and cite at least one criticism of it.