Question 1

The simplest way for a U.S. firm to do business in a foreign market is to export its products directly to that market.

Accepted Answer

A) True 
 B)False

Question 2

Telfonix Corporation, a U.S. firm, and Adex, Inc., a British firm, are parties to a contract with a forum-selection clause. The forum specified in the clause

Accepted Answer

A)   must be within the geographic boundaries of the United States.
B)   must be within the geographic boundaries of Britain.
C)   need not be within the geographic boundaries of either party.
D)   must be within the geographic boundaries of either the United States or Britain.E) A) and B)
F) All of the above

Question 3

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by

Accepted Answer

A)   the act of state doctrine.
B)   the doctrine of sovereign immunity.
C)   the Foreign Corrupt Practices Act.
D)   the principle of comity.E) All of the above
F) C) and D)

Question 4

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

Accepted Answer

A)   allege antitrust injuries under the Sherman Act.
B)   bring civil suits under the Alien Tort Claims Act.
C)   file criminal complaints under Title VII of the Civil Rights Act.
D)   do nothing.E) None of the above
F) All of the above

Question 5

Quotas are limits on the amounts of goods that can be exported.

Accepted Answer

A) True 
 B)False

Question 6

To obtain a contract with the Chinese government, Bammo Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

Accepted Answer

A)   the act of state doctrine.
B)   the doctrine of sovereign immunity.
C)   the Foreign Corrupt Practices Act.
D)   the principle of comity.E) All of the above
F) A) and C) C

Question 7

Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a contract that specifies that the official language of the contract is English. This is

Accepted Answer

A)   a choice-of-forum clause.
B)   a choice-of-language clause.
C)   a choice-of-law clause.
D)   an arbitration clause.E) C) and D)
F) B) and C)

Question 8

A tariff is always a flat rate per unit.

Accepted Answer

A) True 
 B)False

Question 9

The United States taxes each barrel of imported oil at a flat rate. This is

Accepted Answer

A)   an antidumping duty.
B)   a dumping duty.
C)   a quota.
D)   a tariff.E) B) and C)
F) A) and C) D

Question 10

Dumping is the exporting of environmentally polluting goods to a foreign market.

Accepted Answer

A) True 
 B)False

Question 11

Savory Cooking Sauces, Inc., a U.S. business firm, makes and sells distinctively flavored cooking sauces. Although the recipes are secret, the ingredients could be revealed and the sauces could be reconstructed with diligent efforts. What can Savory do to prevent its products from being "decoded" and pirated abroad?

Accepted Answer

One possibility is that Savory Cooking S...

Question 12

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Accepted Answer

A)   confiscation.
B)   defalcation.
C)   dumping.
D)   expropriation.E) None of the above
F) B) and D)

Question 13

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Accepted Answer

A)   confiscation.
B)   defalcation.
C)   dumping.
D)   expropriation.E) A) and B)
F) A) and D)

Question 14

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

Accepted Answer

A)   a distribution agreement.
B)   a joint venture.
C)   direct exporting.
D)   licensing.E) A) and B)
F) C) and D)

Question 15

Under the principle of comity, all foreign governments are subject to all U.S. laws.

Accepted Answer

A) True 
 B)False

Question 16

Tariffs are imposed only on exports.

Accepted Answer

A) True 
 B)False

Question 17

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment

Accepted Answer

A)   if it is consistent with U.S. laws and public policy.
B)   if it is consistent with Portuguese laws and public policy.
C)   if it does not benefit the U.S. to deny it.
D)   under no circumstances.E) B) and D)
F) A) and C)

Question 18

A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.

Accepted Answer

A) True 
 B)False

Question 19

The management of Sport Shoes Corporation, a U.S. firm, wants to expand into foreign investment and employment markets. They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm. What are the advantages and disadvantages of each of these courses of action?

Accepted Answer

One of the advantages of opening a wholly owned production facility, in the United States or in a foreign nation, is that all of the profits accrue to the owner. The disadvantages include the risk involved in open ing a production facility in a foreign country. There is a possibility of the foreign government's expropriation of the facility. Expropriation is the tak ing of private property for a public purpose and the paying of just com pen sation. Foreign governments have also sometimes confiscated the property of foreign companies. Confiscation is the taking of private prop erty for a public purpose without just compensation. Under the act of state doctrine, U.S. courts would be reluctant to intervene, either by ordering the property returned or ordering the payment of a fair price. Thus, there could be a considerable sum of money at risk in a foreign production facil ity. A licens ing agreement, by contrast, involves relatively little capital investment and represents less risk of loss from a confiscation or an ex propriation. By en tering into a licensing agreement with a foreign firm for the rights to manufacture Sport products, or to sell products under the Sport trade mark, Sport eliminates the chance that its assets would be lost if they were confiscated. Of course, there will also be fewer profits and those will likely be in the form of royalties.

Question 20

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns

Accepted Answer

A)   all of the operation, and its profits and liabilities.
B)   all of the operation, and none of its profits and liabilities.
C)   none of the operation, and none of its profits and liabilities.
D)   part of the operation, and shares its profits and liabilities.E) A) and B)
F) All of the above

Exam 8: International Law in a Global Economy

The simplest way for a U.S. firm to do business in a foreign market is to export its products directly to that market.

Correct Answer
verified

Telfonix Corporation, a U.S. firm, and Adex, Inc., a British firm, are parties to a contract with a forum-selection clause. The forum specified in the clause

Correct Answer
verified

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by

Correct Answer
verified

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

Correct Answer
verified

Quotas are limits on the amounts of goods that can be exported.

Correct Answer
verified

To obtain a contract with the Chinese government, Bammo Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

Correct Answer
verified
C

Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a contract that specifies that the official language of the contract is English. This is

Correct Answer
verified

A tariff is always a flat rate per unit.

Correct Answer
verified

The United States taxes each barrel of imported oil at a flat rate. This is

Correct Answer
verified
D

Dumping is the exporting of environmentally polluting goods to a foreign market.

Correct Answer
verified

Correct Answer
verified
One possibility is that Savory Cooking S...
View Answer

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Correct Answer
verified

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Correct Answer
verified

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

Correct Answer
verified

Under the principle of comity, all foreign governments are subject to all U.S. laws.

Correct Answer
verified

Tariffs are imposed only on exports.

Correct Answer
verified

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment

Correct Answer
verified

A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.

Correct Answer
verified

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns

Correct Answer
verified

Exam 8: International Law in a Global Economy

The simplest way for a U.S. firm to do business in a foreign market is to export its products directly to that market.

Correct AnswerverifiedShow Answer

Telfonix Corporation, a U.S. firm, and Adex, Inc., a British firm, are parties to a contract with a forum-selection clause. The forum specified in the clause

Correct AnswerverifiedShow Answer

Sudan seizes the assets of Triage Medical, Inc., a U.S. firm. Triage's recovery from Sudan in a U.S. court may be prevented by

Correct AnswerverifiedShow Answer

Qang and other foreign citizens allege human rights violations committed overseas by the government of Burma on behalf of Railway Construction Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can

Correct AnswerverifiedShow Answer

Quotas are limits on the amounts of goods that can be exported.

Correct AnswerverifiedShow Answer

To obtain a contract with the Chinese government, Bammo Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate

Correct AnswerverifiedC

Wytex, Inc., a U.S. firm, and Findora Commercial, a Nigerian firm, are parties to a contract that specifies that the official language of the contract is English. This is

Correct AnswerverifiedShow Answer

A tariff is always a flat rate per unit.

Correct AnswerverifiedShow Answer

The United States taxes each barrel of imported oil at a flat rate. This is

Correct AnswerverifiedD

Dumping is the exporting of environmentally polluting goods to a foreign market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOne possibility is that Savory Cooking S...View AnswerShow Answer

Mountain Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is

Correct AnswerverifiedShow Answer

Call Center Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays Call Center just compensation. This is

Correct AnswerverifiedShow Answer

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optima's products in Canada. This is

Correct AnswerverifiedShow Answer

Under the principle of comity, all foreign governments are subject to all U.S. laws.

Correct AnswerverifiedShow Answer

Tariffs are imposed only on exports.

Correct AnswerverifiedShow Answer

Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment

Correct AnswerverifiedShow Answer

A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas.

Correct AnswerverifiedShow Answer

Secure Investments, Inc., a U.S. firm, expands into international markets through a joint venture. In this situation, Secure owns

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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D

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Correct Answer
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One possibility is that Savory Cooking S...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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