QuestionQuestion 1If a country exerts nationalization over a company’s assets and does not provide compensatio

01 May QuestionQuestion 1If a country exerts nationalization over a company’s assets and does not provide compensatio

Question
Question 1
If a country exerts nationalization over a company’s assets and does not provide compensation, _______ has occurred.

expropriation

privatization

extraterritoriality

confiscation
5 points

Question 2
________ law legal systems primarily rely on case law and precedents.

Common

Civil

Statutory

Codified
5 points

Question 3
________ is a process used mainly in the area of public international law whereby a third party, often a disinterested government, brings the parties together by establishing communication and providing a site where the parties can meet, often in secret.

Public involvement

Good offices

International involvement

Best transactions
5 points

Question 4
Which of the following is a legal principle of international law under which nations submit their decision-making authority to a common organization or institution?

Private international law

Supranational law

The international naturalized agreement

The foreign resolution principle
5 points

Question 5
The principle that each World Trade Organization member must accord to all other member countries tariff treatment no less favorable than it provides to any other country is known as the _______ principle.

most favored nation

preference

bound nation protection

product enhancement
5 points

Question 6
A ________ is created when a group of states reduce or eliminate tariffs between themselves but maintain their own individual tariffs as to other states.

free trade area

Caribbean basin initiative

customs union

most favored nation
5 points

Question 7
Allison, a dress designer, believes that she has a great deal with a company in Ireland, called Fashion, which has agreed to purchase a number of her dresses. The manager of Fashion, however, insists on delivery of the dresses before payment will be provided. Which of the following would be a good idea for Allison?

Allison should insist on a documentary letter of credit provided by an issuing bank promising payment upon proof of delivery of the dresses.

Allison should insist on a letter of credit issued by the buyer promising payment upon delivery of the dresses.

Allison should personally deliver the dresses so that she can demand payment while there.

Allison should turn down the deal because it is too risky.
5 points

Question 8
The members of the European Parliament are elected by the ________ of the member states.

legislative branch

executive branch

citizens

Council of Ministers
5 points

Question 9
The process in which existing common law positions are restated and laid down in a statute is referred to as _______.

conciliation

codification

directive encoding

sectioning
5 points

Question 10
A(n) _______ has features of a customs union but goes a step further by eliminating barriers that restrict the movement of labor, capital, and technology among member nations.

valuation market

common market

import relief consortium

nontarrif consortium
5 points

Question 11
In the United States, the value of an article for customs purposes is normally the ________ value, which is the price indicated on the sales invoice.

customs

transaction

domestic

international
5 points

Question 12
The Council of Ministers is the legislative body of

NAFTA.

GATT.

the Treaty of Rome.

the European Union.
5 points

Question 13
Jackson owns a business in a foreign country that is considered “friendly” with the U.S. but which has significant political unrest. Jackson is uneasy about the situation in the country. He is concerned that his business could be the subject of a taking by the foreign country or losses due to civil unrest. What advice would you give him?

He should seek insurance through the Foreign Insurance Services Company, a privately run insurance company specializing in foreign risk.

He should do nothing at the present, but seek reimbursement through the U.S. government should losses be incurred.

He should seek insurance through the Overseas Private Investment Corporation, a U.S. government agency specializing in providing insurance for foreign risk.

He should sell the company and leave the country because insurance is not available
5 points

Question 14
In a series of laws, known collectively as the ________ laws, Congress has authorized the President to raise U.S. tariffs on specified products and to provide other forms of import protection to U.S. businesses.

export-relief

domestic-relief

import-relief

international-relief
5 points

Question 15
The ________ provides for temporary relief to domestic industries seriously injured by increasing imports, regardless of whether unfair practices are involved.

fair trade law

import-relief law

duty free zone

foreign trade zone
5 points

Question 16
One simple way of addressing foreign tax risks is a(n) ________, whereby the local licensee is obligated to pay all taxes other than those specifically allocated to the foreign partner.

gross-up clause

tax shift clause

local commitment clause

overseas investment clause
5 points

Question 17
The ________ was created to provide financing for the purchase of U.S. exports.

World Bank

U.S. Bank

Export-Import Bank of the U.S.

U.S. Trade Association
5 points

Question 18
Amanda was just hired to work for a federal agency in the procurement department. Amanda shops for the best buys possible and thinks she has found a great deal. She returns to her office and tells her supervisor about her discovery. Her boss tells her to be sure that the Buy American Act is satisfied. Amanda decides to research the law. What will she find?

That under all circumstances federal agencies must purchase products that are 100% made in the U.S.A.

That under all circumstances federal agencies must purchase products with at least 75% of the components made in the U.S.A.

That unless the price is a certain percentage higher than the price of the equivalent foreign product, federal agencies must buy products with at least 50% of the components made in the U.S.A.

That federal agencies may buy foreign made products so long as it can be established that a representative did comparison shopping and established that the foreign made good is a better deal than the made in the U.S.A. product.
5 points

Question 19
________ is the principal U.S. statute addressing unfair foreign practices affecting U.S. exports of goods or services.

Section 301 of the Trade Act of 1974

Section 502 of the Trade Act of 1990

The Unfair Export Limits Act

The International Control Act
5 points

Question 20
Exports are controlled by means of export

duties

licenses

subsidies

customs valuations