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The Foreign Sovereign Immunities Act spells out what a "foreign state" includes.

A) True
B) False

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Generally,a foreign government cannot sue under U.S.anti-trust laws in U.S.courts. 

A) True
B) False

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The act of state doctrine provides that the executive branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.

A) True
B) False

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In the global environment of business,the law of a particular nation,such as Germany,Japan,or the United States,is classified as​ 


A)  ​environmental law. 
B)  ​global law. 
C)  ​international law. 
D)  ​national law.

E) None of the above
F) B) and C)

Correct Answer

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AgriWorld,a U.S.firm,owns property in Kenya.The government of Kenya seizes the property.AgriWorld claims that this is confiscation.The government of Kenya claims that it is expropriation.The burden of proof lies with​ 


A)  ​the U.S. government. 
B)  ​the government of Kenya. 
C)  ​AgriWorld. 
D)  ​none of the choices.

E) B) and D)
F) A) and B)

Correct Answer

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Some countries provide insurance for their citizens' investments abroad. 

A) True
B) False

Correct Answer

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Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation.

A) True
B) False

Correct Answer

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Northwest Resources,Inc.,and Midwest Commodities Corporation are exporting firms that join together to export a line of products.Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort.Under federal law,Commerce and other U.S.banks are​ 


A)  ​encouraged by credit guaranties to lend such funds. 
B)  ​discouraged by administrative rules to make such loans. 
C)  ​asked by enforcement agencies to report such requests. 
D)  ​banned by statute from opening such credit lines.

E) A) and B)
F) A) and C)

Correct Answer

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Franchising is a form of licensing. 

A) True
B) False

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

A) True
B) False

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Restrictions on imports may not include tariffs. 

A) True
B) False

Correct Answer

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


A)  ​the act of state doctrine. 
B)  ​the doctrine of sovereign immunity. 
C)  ​the Foreign Corrupt Practices Act. 
D)  ​the principle of comity.

E) A) and D)
F) A) and B)

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The U.S.corporation Burger Heaven makes a deal with an Icelandic firm that allows the Icelandic firm to use Burger Heaven's trade name in Iceland in return for a fee.This is​ 


A)  ​a franchise. 
B)  ​piracy. 
C)  ​a joint venture. 
D)  ​direct exporting.

E) A) and B)
F) A) and C)

Correct Answer

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Dumping is the sale of imported goods at "less than fair value."​ 

A) True
B) False

Correct Answer

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Bango! Business,Inc.,a U.S.firm,may have committed,in Chile,acts that would constitute,in the United States,violations of U.S.anti-trust laws.These laws apply​ 


A)  ​extraterritorially. 
B)  ​only to signatories of the North American Free Trade Agreement. 
C)  ​only to members of the World Trade Organization. 
D)  ​only within U.S. borders.

E) None of the above
F) All of the above

Correct Answer

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UniOil,a U.S.firm,owns property in Nicaragua.When the government of Nicaragua seizes the property,UniOil asks a U.S.court to order the property's return.The court rules that Nicaragua is exempt from the court's jurisdiction.This is​ 


A)  ​a travesty of justice. 
B)  ​the act of state doctrine. 
C)  ​the doctrine of sovereign immunity. 
D)  ​the principle of comity.

E) B) and C)
F) A) and B)

Correct Answer

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The basis for Mexico to give effect to the laws and court decisions of the United States is primarily​ 


A)  ​courtesy and respect. 
B)  ​fear and intimidation. 
C)  ​admiration and envy. 
D)  ​payments of cash and exchanges of property.

E) A) and B)
F) A) and C)

Correct Answer

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Suisse Internationale,a Swiss maker of athletic equipment,enters into a price fixing agreement with Total World Sports,a U.S.wholesaler of Suisse's products.U.S.courts will apply U.S.antitrust laws if​ 


A)  ​the agreement was made in Switzerland. 
B)  ​the agreement was made in the United States. 
C)  ​the price fixing has a substantial effect on U.S. commerce. 
D)  ​the Swiss government agrees to be sued in the United States.

E) A) and D)
F) All of the above

Correct Answer

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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?​

Correct Answer

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One of the advantages of opening a wholl...

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

A) True
B) False

Correct Answer

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