Question 1

Which of the following is true of bonded warehouses?

Accepted Answer

A)  They are operated by transportation firms. 
B)  They are intended to be places for trade and business. 
C)  They help shippers in avoiding tariffs and quotas. 
D)  They are owned by the government. 
A)  They are operated by transportation firms. 
B)  They are intended to be places for trade and business. 
C)  They help shippers in avoiding tariffs and quotas. 
D)  They are owned by the government. A

Question 2

In the context of the securities market, a(n) ________ is a person who acts for his or her personal account on information knowing that the information is not available to the public.

Accepted Answer

A)  bona fide purchaser 
B)  tippee 
C)  whistle-blower 
D)  boundary spanner 
A)  bona fide purchaser 
B)  tippee 
C)  whistle-blower 
D)  boundary spanner B

Question 3

Nondiscrimination guarantee is the assurance of a host state government that foreign investors will be able to take out of the state both the investment capital they brought in and the profits they earned.

Accepted Answer

A) True 
 B)False  False

Question 4

A certificated security can be transferred by negotiation.

Accepted Answer

A) True 
 B)False

Question 5

Bonded warehouses are intended to be places for trade and business.

Accepted Answer

A) True 
 B)False

Question 6

Bearer securities are transferred simply by delivery of the certificate.

Accepted Answer

A) True 
 B)False

Question 7

Describe the significance of the Williams Act.

Accepted Answer

In the United States, the Williams Act a

Question 8

Depository receipts are identical to the securities themselves.

Accepted Answer

A) True 
 B)False

Question 9

________ are areas in international airports and harbors where travelers can buy goods free of local sales and excise taxes.

Accepted Answer

A)  Free retail zones 
B)  Export processing zones 
C)  Bonded warehouses 
D)  Foreign priority sectors 
A)  Free retail zones 
B)  Export processing zones 
C)  Bonded warehouses 
D)  Foreign priority sectors

Question 10

Which of the following is a characteristic of stabilization clauses?

Accepted Answer

A)  They can be changed by the mutual agreement of the parties. 
B)  They can prevent a state from nationalizing a foreign investment. 
C)  They can prevent a state from expropriating a foreign investment. 
D)  They guarantee equality of treatment with regard to ownership rights, taxation, and, social matters. 
A)  They can be changed by the mutual agreement of the parties. 
B)  They can prevent a state from nationalizing a foreign investment. 
C)  They can prevent a state from expropriating a foreign investment. 
D)  They guarantee equality of treatment with regard to ownership rights, taxation, and, social matters.

Question 11

Exempt securities typically include those issued by governmental bodies, by banks, and by not-for-profit corporations.

Accepted Answer

A) True 
 B)False

Question 12

________ is a procedure by which a buyer turns over the purchase price and the seller turns over the securities in a securities transaction.

Accepted Answer

A)  Expropriation 
B)  Insider trading 
C)  Clearance and settlement 
D)  Conformity assessment procedure 
A)  Expropriation 
B)  Insider trading 
C)  Clearance and settlement 
D)  Conformity assessment procedure

Question 13

A free zone located within or near a port city is called a(n) ________.

Accepted Answer

A)  free trade zone 
B)  free retail zone 
C)  special economic zone 
D)  exclusive economic zone 
A)  free trade zone 
B)  free retail zone 
C)  special economic zone 
D)  exclusive economic zone

Question 14

A ________ is a person who has access to material nonpublic information about a company or the securities market and who discloses it to someone who acts on that information.

Accepted Answer

A)  bona fide purchaser 
B)  whistle-blower 
C)  boundary spanner 
D)  tipper 
A)  bona fide purchaser 
B)  whistle-blower 
C)  boundary spanner 
D)  tipper

Question 15

An uncertificated security is one whose ownership is recorded only on the books of the issuer.

Accepted Answer

A) True 
 B)False

Question 16

Describe the significance of foreign investment policies.

Accepted Answer

The precise form of foreign investment r

Question 17

What is a depository receipt?

Accepted Answer

To facilitate foreign trading in shares,

Question 18

Acquisition by a state of property previously held by private persons or companies, usually in exchange for some consideration is called ________.

Accepted Answer

A)  expropriation 
B)  nationalization 
C)  privatization 
D)  municipalization 
A)  expropriation 
B)  nationalization 
C)  privatization 
D)  municipalization

Question 19

A(n) ________ is a printed statement given to prospective securities investors setting out a full, true, and plain disclosure of all material facts relating to the securities and the issuer.

Accepted Answer

A)  prospectus 
B)  article of incorporation 
C)  memorandum of association 
D)  charter 
A)  prospectus 
B)  article of incorporation 
C)  memorandum of association 
D)  charter

Question 20

Which of the following is the oldest type of free zone?

Accepted Answer

A)  free trade area 
B)  free perimeter 
C)  free city 
D)  special economic zone 
A)  free trade area 
B)  free perimeter 
C)  free city 
D)  special economic zone

Which of the following is true of bonded warehouses?

In the context of the securities market, a(n) ________ is a person who acts for his or her personal account on information knowing that the information is not available to the public.

Nondiscrimination guarantee is the assurance of a host state government that foreign investors will be able to take out of the state both the investment capital they brought in and the profits they earned.

A certificated security can be transferred by negotiation.

Bonded warehouses are intended to be places for trade and business.

Bearer securities are transferred simply by delivery of the certificate.

Describe the significance of the Williams Act.

Depository receipts are identical to the securities themselves.

________ are areas in international airports and harbors where travelers can buy goods free of local sales and excise taxes.

Which of the following is a characteristic of stabilization clauses?

Exempt securities typically include those issued by governmental bodies, by banks, and by not-for-profit corporations.

________ is a procedure by which a buyer turns over the purchase price and the seller turns over the securities in a securities transaction.

A free zone located within or near a port city is called a(n) ________.

A ________ is a person who has access to material nonpublic information about a company or the securities market and who discloses it to someone who acts on that information.

An uncertificated security is one whose ownership is recorded only on the books of the issuer.

Describe the significance of foreign investment policies.

What is a depository receipt?

Acquisition by a state of property previously held by private persons or companies, usually in exchange for some consideration is called ________.

A(n) ________ is a printed statement given to prospective securities investors setting out a full, true, and plain disclosure of all material facts relating to the securities and the issuer.

Which of the following is the oldest type of free zone?

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Money and Banking

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters

Exam 5: Foreign Investment

Which of the following is true of bonded warehouses?

In the context of the securities market, a(n) ________ is a person who acts for his or her personal account on information knowing that the information is not available to the public.

Nondiscrimination guarantee is the assurance of a host state government that foreign investors will be able to take out of the state both the investment capital they brought in and the profits they earned.

A certificated security can be transferred by negotiation.

Bonded warehouses are intended to be places for trade and business.

Bearer securities are transferred simply by delivery of the certificate.

Describe the significance of the Williams Act.

Depository receipts are identical to the securities themselves.

________ are areas in international airports and harbors where travelers can buy goods free of local sales and excise taxes.

Which of the following is a characteristic of stabilization clauses?

Exempt securities typically include those issued by governmental bodies, by banks, and by not-for-profit corporations.

________ is a procedure by which a buyer turns over the purchase price and the seller turns over the securities in a securities transaction.

A free zone located within or near a port city is called a(n) ________.

A ________ is a person who has access to material nonpublic information about a company or the securities market and who discloses it to someone who acts on that information.

An uncertificated security is one whose ownership is recorded only on the books of the issuer.

Describe the significance of foreign investment policies.

What is a depository receipt?

Acquisition by a state of property previously held by private persons or companies, usually in exchange for some consideration is called ________.

A(n) ________ is a printed statement given to prospective securities investors setting out a full, true, and plain disclosure of all material facts relating to the securities and the issuer.

Which of the following is the oldest type of free zone?

Introduction to International and Comparative Law

State Responsibility and Environmental Regulation

Dispute Settlement

The Multinational Enterprise

Money and Banking

Trade in Goods

Services and Labor

Intellectual Property

Sales

Transportation

Financing

Filters