BUS 311 Week 5 Quiz Chapter 033

1. 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.

BT: Knowledge

PO: 1

True False

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

BT: Knowledge

PO: 2

True False

1. 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.

BT: Knowledge

PO: 2

True False

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

BT: Knowledge

PO: 4

True False

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

BT: Knowledge

PO: 4

True False

1. 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.

BT: Knowledge

PO: 4

True False

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

BT: Knowledge

PO: 4

True False

1. 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.

BT: Knowledge

PO: 4

True False

1. 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.

BT: Knowledge

PO: 5

True False

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

BT: Knowledge

PO: 5

True False

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

BT: Knowledge

PO: 5

True False

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

BT: Knowledge

PO: 5

True False

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.

BT: Knowledge

PO: 6

True False

1. 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.

BT: Knowledge

PO: 6

True False

1. 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.

BT: Knowledge

PO: 7

True False

1. 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.

1. __ 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

1. 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.

1. 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.

1. 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.

1. 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.

1. 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.

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

A. North American Trade Agreement.

B. World Trade Organization.

C. General Agreement on Tariffs and Trade.

D. International Monetary Fund Agreement.

1. 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 Trade Organization.

B. World Trade Organization.

C. General Agreement on Tariffs and Trade.

D. International Monetary Fund.

1. 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 Trade Agreement.

1. 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.

1. 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.

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

A. pound.

B. dollar.

C. euron.

D. euro.

1. 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.

1. 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.

1. 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.

1. 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.

1. 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.

1. 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.

1. 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

1. ____ property includes both artistic as well as industrial property rights.

A. Tangible

B. Intellectual

C. Public

D. Real

1. 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

1. 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.

1. 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.

1. 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.