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The government of Japan sets a limit on the amount of rice that can be imported from the United States.This is


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

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

Correct Answer

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A U.S.employer operating in a foreign country must abide by U.S.discrimination laws even if doing so violates the laws of that foreign country.

A) True
B) False

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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


A) confiscation.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) expropriation.

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

Correct Answer

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


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

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

Correct Answer

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Comida de Chile S.A. ,an export company in Chile,and Deli Source Inc. ,an import firm in the United States,enter into a contract.When Deli breaches the contract,Comida obtains an award of damages in a Chilean court.Comida then asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Chilean court's decree.This is an application of


A) none of the choices.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

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

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 B)
F) A) and C)

Correct Answer

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When a wholly owned subsidiary is established in a foreign country,the parent company,which remains in the United States,gives up ownership,authority,and control over all phases of the operation in the foreign country.

A) True
B) False

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Market Maker,Inc. ,a U.S.firm,can license a foreign manufacturing company to use its


A) patented intellectual property.
B) trade secrets.
C) trademarked brand.
D) any of the choices.

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

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Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company,a U.S.firm.To seek redress for their injuries in a U.S.court,these citizens can


A) subject the private company to the provisions of 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) A) and D)
F) A) and C)

Correct Answer

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Blue Space Corporation launches exploratory space flights to the moon and Mars.The purpose is to discover and retrieve minerals and other resources.Under U.S.Law,Blue Space


A) cannot profit from resources retrieved in space.
B) cannot legally retrieve resources in space.
C) must share with all interested parties what it retrieves in space.
D) owns what it retrieves in space.

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

Correct Answer

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Coffee Company,a U.S.firm,owns property in the Dominican Republic.When the Dominican government seizes the property,the company asks a U.S.court to order the property's return.The court rules that the Dominican Republic is exempt from the court's jurisdiction.This is an application of


A) a coercive action.
B) the act of state doctrine.
C) the doctrine of sovereign immunity.
D) the principle of comity.

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

Correct Answer

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Sufficient business develops in France for Graphic Comics Inc. ,a U.S.firm,to appoint Comics Graphique Ltd. ,a French firm,to act as Graphic's marketing representative in France.This is


A) direct exporting.
B) franchising.
C) indirect exporting.
D) licensing.

E) C) and D)
F) B) and C)

Correct Answer

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Mexico is likely to defer and give effect to the laws and judicial decrees of the United States as long as


A) the laws and decrees are consistent with Mexican law and public policy.
B) smaller countries fear and are intimidated by more powerful nations.
C) poorer countries admire and envy richer nations.
D) all of the choices.

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

Correct Answer

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Countries restrict exports to protect national security,further foreign policy objectives,and conserve resources.

A) True
B) False

Correct Answer

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To prevent the sale of imported goods at less than fair value,an extra tariff-known as an antidumping duty-may be assessed on the imports.

A) True
B) False

Correct Answer

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Opti-Med Inc. ,a U.S.firm,signs a contract with Pharma Ltd. ,a Canadian firm,to give Pharma the right to sell Opti-Med's products in Canada.This is


A) a distribution agreement.
B) indirect exporting.
C) direct exporting.
D) licensing.

E) None of the above
F) A) and D)

Correct Answer

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In international business,franchising involves


A) a license.
B) a distribution agreement.
C) a subsidiary.
D) direct exporting.

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

Correct Answer

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An export tax imposed by Congress would be unconstitutional.

A) True
B) False

Correct Answer

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Equity International Inc. ,a U.S.firm,and Finance Invest Ltd. ,a firm in Great Britain,are parties to a contract with a forum-selection clause.The forum specified in the clause must be within the geographic boundaries of


A) the United States.
B) Great Britain.
C) none of the choices.
D) a "select" forum,such as a United Nations protectorate.

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

Correct Answer

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Mont Blanc S.A. ,a French firm,imports its goods into the United States and offers those goods for sale at "less than fair value." Fair value is the price of Mont Blanc's goods in


A) the European market.
B) France.
C) the United States.
D) the world market.

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

Correct Answer

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