Global Business Environment
Test Preparation
Course Introduction
The Global Business Environment course explores the dynamic and interconnected landscape in which international businesses operate. Students will examine how economic, political, cultural, and legal forces influence global markets, trade, and investment decisions. The course covers topics such as globalization, international regulatory frameworks, cross-cultural management, and emerging market trends. Through case studies and real-world examples, students will gain insights into strategies for navigating risks and capitalizing on opportunities in the global marketplace, preparing them to make informed decisions in a rapidly changing world.
Recommended Textbook
International Business Law and Its Environment 8th Edition by Richard Schaffer
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21 Chapters
1385 Verified Questions
1385 Flashcards
Source URL: https://quizplus.com/study-set/2040
Page 2
Chapter 1: Introduction to International Business
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63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/40581
Sample Questions
Q1) In Dayan v.McDonald's Corporation,the court ruled that:
A) McDonald's quality standards were inadequate under French law.
B) The McDonald's franchise contract was illegal under French law.
C) McDonald's had fulfilled its responsibility to the franchisee in France under U.S. law.
D) The French do not like hamburgers.
Answer: C
Q2) Nontariff barriers have a significant influence on how firms make their trade and investment decisions.
A)True
B)False
Answer: True
Q3) The shipment of goods or rendering of services to a foreign buyer located in a foreign country is:
A) Importing.
B) Exporting.
C) Foreign exchange.
D) A and B.
Answer: B
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3
Chapter 2: International Law and the Worlds Legal Systems
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) All of the following are principles established by the codes of conduct promulgated by the Organization for Economic Cooperation and Development (OECD)except:
A) To take into account the policies and objectives of the country with which a corporation operates.
B) Nondiscrimination in hiring.
C) Mandatory wage scales for countries in which each corporation operates.
D) Utilizing "reasonable terms" when transferring technology.
Answer: C
Q2) The GATT process has resulted in dramatic reductions in tariffs.
A)True
B)False
Answer: True
Q3) Only states (nations)can be parties to a case before the World Court.
A)True
B)False
Answer: True
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Chapter 3: Resolving International Commercial Disputes
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) In general,at common law and in civil law jurisdictions,the choice of law clauses is rarely upheld.
A)True
B)False
Answer: False
Q2) A U.S.court might refuse to enforce a Libyan court judgment.
A)True
B)False
Answer: True
Q3) A foreign company's first line of defense in litigation in the U.S.is often that they are not subject to the jurisdiction of the courts.
A)True
B)False
Answer: True
Q4) Litigation is used more frequently as a means of settling business disputes in the U.S.than in virtually any other country.
A)True
B)False Answer: True
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Chapter 4: Sales Contracts and Excuses for
Nonperformance
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) As a seller who fails to deliver goods on time,consider whether U.S.law or the CISG favors your interests.
Q2) If a U.S.buyer wants to avoid a sales contract with an Italian seller,the CISG states that the U.S.buyer:
A) Can avoid the contract only if there has been a fundamental breach by the Italian seller.
B) Cannot avoid the sales contract under any circumstances.
C) Can avoid the contract even for minor breaches by the Italian seller.
D) Can avoid if done anytime within 30 days after the goods arrive.
Q3) The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is:
A) Good excuse clause.
B) Out of control clause.
C) Force Majeure clause.
D) Excuse moi clause.
Q4) Draft a model statute regarding international e-contracts (perhaps considering rules for offer,acceptance,and revocation).
Page 6
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Chapter 5: The Documentary Sale and Terms of Trade
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:
A) Cash in advance.
B) Open account.
C) Documentary sale.
D) All of the above.
Q2) Under contract terms "DES Stockholm," the seller must pay the ocean freight to Stockholm,but the buyer pays the unloading charges at the Stockholm terminal.
A)True
B)False
Q3) Another term for a negotiable bill of lading is a documentary draft.
A)True
B)False
Q4) The seller issues the bill of lading.
A)True
B)False
Q5) Compare and contrast the circumstances under which a buyer would and would not accept "E"-term contracts.
Q6) What are the benefits and possible detriments of using an inspection firm?
Page 7
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Chapter 6: The Carriage of Goods and the Liability of Air and Sea Carriers
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) In J.Gerber & Co.v.SS Sabine Howaldt,a lawsuit brought by the owner of cargo (steel products)against an ocean carrier for damage to the cargo caused by sea water and moisture,the court ruled that:
A) The turbulent seas and high winds were not sufficiently severe to constitute a "peril of the sea" under COGSA.
B) The carrier was liable because the vessel was not seaworthy when it left port.
C) The carrier was liable because it had not used usual good seamanship in handling the vessel.
D) The carrier was not liable because it proved that the damage was caused by a peril of the sea.
E) None of the above.
Q2) An ocean carrier is liable for its failure to use due diligence in providing a seaworthy ship at the beginning of the voyage.
A)True
B)False
Q3) What are the differences and similarities between a freight forwarder and a non-vessel operating common carrier and the relative benefits of using each?
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Page 8
Chapter 7: Bank Collections, Trade Finance, and Letters of Credit
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Most documentary discrepancies that occur in a letter of credit transaction are:
A) A result of fraud and misrepresentation.
B) A result of the desire to profit from the transaction.
C) A result of incomplete or inconsistent information.
D) Banking errors.
Q2) In order to negotiate an order instrument,it must be indorsed and delivered.
A)True
B)False
Q3) Which of the following institutions does not provide credit guarantees to back trade finance lending by commercial institutions?
A) The Federal Reserve Bank.
B) The Eximbank.
C) The Commodity Credit Corporation.
D) The Agency for International Development.
Q4) The risk of loss due to the default of the buyer based on his or her inability to pay is known as:
A) Commercial risk.
B) Compensatory risk.
C) Default risk.
D) Currency risk.
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Chapter 8: National Lawmaking Powers and the Regulation
of Ustrade
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) During the 1940s,the U.S.instituted a price support system for American potatoes.Congress had addressed the problems of agricultural imports in the Agricultural Act of 1948.The U.S.Secretary of State entered into an executive agreement with Canada that would permit only seed potatoes to be imported into the U.S.This agreement was not submitted to or approved by congress.A potato importer imported potatoes into the U.S.for A & P grocery stores for resale.When the court tried this case brought by the U.S.against the importer:
A) The court found for the importer because the executive agreement was entered into without Congressional approval.
B) The court found for the U.S. because this was an executive agreement provided for by the president.
C) The court used the "first in time rule" and found for U.S. since Congress and the president are equal.
D) None of the above is correct in this situation.
Q2) If a conflict arises between the terms of a treaty and a statute,the first in time will prevail.
A)True B)False
Q3) Weigh the relative value and risks of fast-rack regulation.
Page 10
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Chapter 9: Gatt Law and the World Trade Organization:
Basic Principles
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64 Verified Questions
64 Flashcards
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Sample Questions
Q1) The phrase to describe when a foreign government's import regulations are not made readily available to the public or are hidden or disguised in bureaucratic rules or practices is:
A) Not transparent.
B) Unfair trade practices.
C) Bureaucratic procrastination.
D) Limited access.
Q2) A "free trade" nation has no barriers to trade.
A)True
B)False
Q3) Tariffs are computed:
I. As a percentage of value (ad valorem).
II. On the basis of physical units (specific).
A) I only.
B) II only.
C) Both I and II.
D) Neither I nor II.
Q4) Compare and contrast direct and indirect nontariff barriers.
Q5) In what ways are GATT and the WTO similar? Different?
Q6) Compare and contrast unconditional and conditional MFN trade. Page 11
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Chapter 10: Laws Governing Access to Foreign Markets
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) ISO 9000 refers to:
A) Standards used for assuring product quality through product design and manufacturing process.
B) A series of import regulations imposed by the European Union.
C) Japanese trade restrictions against U.S. telecommunications companies that were eventually repealed.
D) A trade agreement established between the U.S. and the European Union that will significantly reduce barriers to trade.
Q2) The first multilateral,legally enforceable agreement to establish rules for international trade in services was:
A) The General Agreement on Trade in Services of 1994.
B) Trade in Services Act of 1947.
C) The Multilateral Agreement on Trade in Services of 1994.
D) The General Agreement on Trade in Services of 1947.
Q3) The GATT Agreement on Agriculture is expected to increase export opportunities for agricultural products and to reduce government subsidies.
A)True
B)False
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13
Chapter 11: Regulating Import Competition and Unfair Trade
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) If the International Trade Commission reaches an affirmative decision in an escape clause action,workers,firms,and communities may be eligible for federal adjustment assistance.
A)True
B)False
Q2) To obtain import relief under U.S.law,the domestic industry must prove that the foreign producer or government has undertaken an illegal or unfair action in its export policy.
A)True
B)False
Q3) A provisional measure is a tariff imposed by a country in order to ensure that dumping does not take place.
A)True
B)False
Q4) The "material injury" requirement under the U.S.unfair import statutes requires a finding of less harm than does the "serious injury" requirement in the U.S.escape clause.
A)True
B)False
Page 14
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Chapter 12: Imports, Customs, and Tariff Law
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Compare and contrast the different types of tariffs,considering which type would generally benefit the importing country.
Q2) Dutiable assists generally include all but which of the following:
A) Raw materials provided by the importer and used in the foreign production of the imported goods.
B) Tools, dies, and molds provided by the importer to the foreign manufacturer of imported goods.
C) Engineering, development. and artwork performed by a foreign firm.
D) All of the above are dutiable assists.
Q3) Goods financed by the seller have duties assessed against the interest payable only if that amount is included in the purchase price of the goods.
A)True
B)False
Q4) When dutiable value is determined based on the resale price of goods it is called:
A) Deductive value.
B) Computed value.
C) Resale transaction value.
D) Calculated value.
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Page 15
Chapter 13: The Regulation of Exports
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32 Verified Questions
32 Flashcards
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Sample Questions
Q1) In the United States,the office that initially reviews and rules on license applications is the:
A) Bureau of Industry and Security.
B) Office of Export Trade Control.
C) Export Administration Board.
D) Export Policy Operations Committee.
Q2) Companies in some countries cooperate with the boycott against Israel. A)True
B)False
Q3) The Export Control Act of 1949 was passed:
A) To aid Europe's economic recovery after WWII.
B) To control the exporting of goods with military applications to communist countries.
C) To prevent the escalation of the Cold War.
D) To provide U.S. manufacturers with fairer trading opportunities outside the U.S.
Q4) There is no global consensus on the level of export control necessary. A)True B)False
Q5) Compare and contrast unilateral export controls with multilateral controls.
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Chapter 14: North American Free Trade Law
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) Regarding NAFTA's investment provisions:
A) Domestically owned companies are given priority over foreign-owned firms.
B) Mexico has stricter environmental laws than the United States.
C) Firms operating in any NAFTA country can convert foreign exchange at local banks.
D) Local firms owned by investors from other NAFTA countries must fill senior management positions with local citizens.
Q2) Sectoral issues are issues of concern to a particular industrial,agricultural,or service sector of the economy.
A)True
B)False
Q3) Presume that the Caribbean countries have been granted NAFTA membership.Design a plan for phasing them into membership.
Q4) A criticism raised against NAFTA is that it serves to divide the world into regional trading blocks.
A)True
B)False
Q5) How are the IPR provisions of NAFTA similar or dissimilar to those of TRIPS? Of the U.S.?
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17
Chapter 15: The European Union and Other Regional Trade Areas
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) The Commission of the European Communities v.Italian Republic involved the importation of vegetable fats labeled as "chocolate substitutes."
A)True
B)False
Q2) The General Court was established to reduce the workload of the European Court of Justice.Its jurisdiction is limited to:
A) Appeals of the Commission's decisions on mergers and acquisitions.
B) Hearing cases between EU institutions and their employers.
C) Appeals related to penalties imposed for Non-European Community companies' price-fixing.
D) All of the above.
E) A and C only.
Q3) In order to participate in the Monetary Union,Maastricht requires European Union members to achieve all of the following except:
A) A budget deficit of no greater than 3% of the GDP.
B) An inflation rate within 1.5% of the three best nations.
C) Exchange rate stability.
D) Maastricht requires all three.
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Chapter 16: International Marketing Law: Sales
Representatives, Advertising, and Ethical Issues
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) The United States is one of the few nations of the world that regulates advertising to children.
A)True
B)False
Q2) Scenario
A birthday card and bottle of California wine sent annually by Woody Pulp,the chief executive officer of Pacific Paper Products,Inc.,a U.S.corporation,to his long-standing friend who is the Director of Government Procurement for the Japanese government.
Q3) The FCPA requires that individuals and corporations meet disclosure requirements for all monies sent abroad as payment for fees owed to their sales agent.
A)True
B)False
Q4) Under the provisions of EC Council Directive 86/653,an agent accrues sales commissions on deals that occur within his territory only when she or he has substantially participated in the events leading up to the customer's purchase.
A)True
B)False
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Chapter 17: Licensing Agreements and the Protection of Intellectual Property Rights
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) A single multinational application process is available for protecting intellectual property in:
A) In the U.S., Canada, and Mexico.
B) In the Eastern European countries.
C) In countries that are member of the Asian Patent Protection Treaty.
D) In the European Union.
E) All of the above.
Q2) The importation of foreign-made trademarked merchandise into the U.S.for sale in competition with the U.S.trademark owner's own merchandise made in the U.S.is referred to as:
A) Copycat competition.
B) Gray marketing.
C) Reverse trade advantage.
D) Black marketing.
Q3) The European Union's Commission has jurisdiction over franchise agreements operating in its member countries.
A)True
B)False
Q4) Compare and contrast TRIPS with IPR in the U.S.or another country (for example,India).
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Chapter 18: Takings and National Controls on Foreign Direct Investment
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85 Verified Questions
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Sample Questions
Q1) Under the Foreign Sovereign Immunities Act,a federal court would not have jurisdiction over a foreign nation unless:
A) The foreign nation's acts were diplomatic in nature.
B) Authority has been granted for the court to hear the case by the president of the United States.
C) The foreign government's actions constitute a commercial activity.
D) The foreign government committed an act of state.
Q2) The first alternative for a victim of nationalization would be to seek relief in the courts of the country where the property was nationalized.
A)True
B)False
Q3) Draft a model law (plan or treaty)for government privatization.This may be done with an eye toward privatizing through national or foreign investment.
Q4) Compare and contrast the traditional and modern traditional theory of takings.
Q5) In the case of nationalization,"adequate" compensation is defined as fair market value.
A)True
B)False
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Chapter 19: Labor and Employment Discrimination Law
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40 Flashcards
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Sample Questions
Q1) Which of the following classifications are treated most similarly under the laws of Europe,the United States,and Japan?
A) Religion.
B) Nationality.
C) National origin.
D) Sex.
Q2) Draft a treaty between the U.S.and at least one other nation regarding international employment discrimination.
Q3) Compare and contrast attitudes toward the employer-employee relationship in the United States with those in other countries.How are these reflected in the respective legal frameworks?
Q4) Under German Works Constitution Act,an employer has the right to close a plant or business facility at any time and without consultation with workers.
A)True
B)False
Q5) Compare and contrast the employee discharge laws in the U.S.with those in Germany.
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Page 22
Chapter 20: Environmental Law
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Sample Questions
Q1) The most important aspect of the Basel Convention has been that the signatory nations succeeded in defining what constitutes hazardous waste.
A)True
B)False
Q2) What is meant by the "polluter pays" principle? How is it consistent with free market economics?
Q3) Developing nations generally favor
A) Creation of a permanent trade and environment committee in the WTO.
B) An ad valorem tax on all imports to promote environment-friendly development in poorer nations.
C) Transfer of environmentally appropriate technology for little or no charge.
D) A and B.
E) B and C.
Q4) The real purpose of U.S.corporate average fuel economy standards was to make it difficult for Japanese luxury cars to compete in the U.S.market.
A)True
B)False
Q5) Reflecting on the "Circle of Poison," draft a bill regarding pesticide exports.
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Chapter 21: Regulating the Competitive Environment
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Sample Questions
Q1) The Tetra Laval BV v.Commission of the European Communities case stands for the proposition that when market dominance is abused by a foreign entity,local courts and regulators are likely to respond with particular force.
A)True
B)False
Q2) Because The Sherman Act is a U.S.statutory law,it cannot be used to regulate or bring an action against a foreign company.
A)True
B)False
Q3) The substance of many countries' antitrust law is very similar in focusing on two types of activity.The two types of activities are:
A) Prohibitions against price cutting and resale price agreements.
B) Prohibitions against agreements attempting to restrict competition and the abuse of a dominant market position.
C) Prohibitions against economizing to achieve greater market share and lack of marginal return.
D) Both A and B.
Q4) Write an argument that clawback provisions violate international law.
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Page 24