Question 1

Under Chapters 19 and 20 of NAFTA,in the event of a dispute,the Extraordinary Challenge Committee is the first body before which an arbitration is heard.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain the purpose of the GATT and the WTO.

Accepted Answer

The GATT was the principal instrument that laid down agreed rules for international trade from 1948 to 1995,when it was superseded by the WTO.The GATT applied to international trade in goods,but not to most agricultural products and textiles,while the WTO now extends GATT arrangements to include trade in some agricultural products,textiles,and services and the protection of intellectual property rights.

Question 3

The decision to invest in a foreign jurisdiction carries with it many risks.The possibility of the host country government assuming ownership of a foreign investor's assets is referred to as

Accepted Answer

A) forum non conveniens. 
B) national party autonomy. 
C) expropriation. 
D) joint venture. 
E) export subsidy. 
A) forum non conveniens. 
B) national party autonomy. 
C) expropriation. 
D) joint venture. 
E) export subsidy. C

Question 4

Explain the greatest fear of a foreign investor who invests in a developing country.

Accepted Answer

The fear is that the assets of

Question 5

What test does Investment Canada apply in order to authorize a foreign acquisition of a large Canadian business?

Accepted Answer

To be authorized,the

Question 6

An export sale normally requires at least four documents.These include all of the following EXCEPT

Accepted Answer

A) the contract of sale. 
B) the bill of lading. 
C) the insurance policy or certificate. 
D) the letter of credit. 
E) the invoice. 
A) the contract of sale. 
B) the bill of lading. 
C) the insurance policy or certificate. 
D) the letter of credit. 
E) the invoice.

Question 7

Conditions attached by a host country to a foreign investment are usually referred to as performance requirements.

Accepted Answer

A) True 
 B)False

Question 8

Export Industries Ltd.,a Canadian corporation with a factory in London,Ontario,agrees to sell a customer in Germany 2000 microwave ovens FOB Lufnaia Airlines,Toronto,Pearson Airport.Which of the following statements is correct?

Accepted Answer

A) Export is only liable if their employees damage the goods prior to their arriving in Toronto. 
B) Export is liable for the goods until they are loaded into Lufnaia Airlines. 
C) The customer's insurance covers the goods from the time they are separated out and loaded at the London,Ontario,factory. 
D) Export is liable until the goods leave Toronto on the airline. 
E) Title passes when the goods leave the London factory. 
A) Export is only liable if their employees damage the goods prior to their arriving in Toronto. 
B) Export is liable for the goods until they are loaded into Lufnaia Airlines. 
C) The customer's insurance covers the goods from the time they are separated out and loaded at the London,Ontario,factory. 
D) Export is liable until the goods leave Toronto on the airline. 
E) Title passes when the goods leave the London factory.

Question 9

A,based in Canada,agrees to sell goods to B in Australia.The contract provides that B will manage shipment of the goods and A will deliver the goods to and load them on a carrier designated by B.In this case,A and B have entered into

Accepted Answer

A) a DDP contract. 
B) a CIF contract. 
C) an FOB contract. 
D) an EXW contract. 
E) none of the above 
A) a DDP contract. 
B) a CIF contract. 
C) an FOB contract. 
D) an EXW contract. 
E) none of the above

Question 10

The World Trade Organization provides two procedures for the resolution of disputes between countries.One way is to request the WTO Council to appoint a "panel" to adjudicate the dispute; the other way is

Accepted Answer

A) a consultation and,if necessary,conciliation procedure-essentially a diplomatic solution. 
B) to turn over the matter to the International Mediation Review Board. 
C) by arbitration through an international arbitration panel. 
D) to submit to the International Compensation Board,who will review the matter and publish a report with their recommendations. 
E) to refer the dispute to the Free Trade Commission for settlement. 
A) a consultation and,if necessary,conciliation procedure-essentially a diplomatic solution. 
B) to turn over the matter to the International Mediation Review Board. 
C) by arbitration through an international arbitration panel. 
D) to submit to the International Compensation Board,who will review the matter and publish a report with their recommendations. 
E) to refer the dispute to the Free Trade Commission for settlement.

Question 11

A large Korean car manufacturer has just built a new model car which it is going to sell in Canada.In Korea the car will be sold for the Canadian equivalent of $25 000.00 but to get into the market in Canada the car will be sold for $15 900.00 Canadian.In this case,the company has engaged in

Accepted Answer

A) anti-dumping. 
B) normal business practices. 
C) export subsidization. 
D) dumping. 
E) a conspiracy. 
A) anti-dumping. 
B) normal business practices. 
C) export subsidization. 
D) dumping. 
E) a conspiracy.

Question 12

Foreign investment occurs when

Accepted Answer

A) a branch of a business enters into trade relations with a foreign country. 
B) the subsidiary of a business enters into trade relations with a foreign country. 
C) a business invests money in a foreign business. 
D) a business establishes a branch or subsidiary in a foreign country. 
E) a business invests money in a foreign country. 
A) a branch of a business enters into trade relations with a foreign country. 
B) the subsidiary of a business enters into trade relations with a foreign country. 
C) a business invests money in a foreign business. 
D) a business establishes a branch or subsidiary in a foreign country. 
E) a business invests money in a foreign country.

Question 13

Today,under NAFTA,when a Canadian consumer purchases goods in the United States,he or she is required to pay Canadian customs and excise duties and tax on those goods when bringing them back into Canada.If this is the case,can it be said that such customs and excise duties and taxes make NAFTA something less than a free trade agreement?

Accepted Answer

While tariffs on goods between the membe

Question 14

The best means of establishing the proper law for an international contract is

Accepted Answer

A) to accept the same country where the contract would be submitted for arbitration. 
B) for the parties themselves to make express provision. 
C) for the parties to leave it by default to the country of signing. 
D) for the parties to leave it up to the rules of the court of jurisdiction. 
E) for the parties to make it subject to a "neutral" law. 
A) to accept the same country where the contract would be submitted for arbitration. 
B) for the parties themselves to make express provision. 
C) for the parties to leave it by default to the country of signing. 
D) for the parties to leave it up to the rules of the court of jurisdiction. 
E) for the parties to make it subject to a "neutral" law.

Question 15

The invoice is of special importance in the international sale of goods.It not only provides information to the parties to the transaction,but also

Accepted Answer

A) provides information for the international electronic data exchange. 
B) operates as a document of title. 
C) facilitates the financing. 
D) provides information to the customs authorities in the country of importation. 
E) acknowledges that the goods have been picked up by the shipping company. 
A) provides information for the international electronic data exchange. 
B) operates as a document of title. 
C) facilitates the financing. 
D) provides information to the customs authorities in the country of importation. 
E) acknowledges that the goods have been picked up by the shipping company.

Question 16

Foreign direct investment (FDI)is not normally conducted through the establishment of

Accepted Answer

A) a branch. 
B) a subsidiary. 
C) a hostile takeover. 
D) a joint venture. 
A) a branch. 
B) a subsidiary. 
C) a hostile takeover. 
D) a joint venture.

Question 17

Where a Canadian company makes an investment in a foreign country,Canada is considered to be the "host" country.

Accepted Answer

A) True 
 B)False

Question 18

Explain how private,public,and public international law come into play in international transactions.

Accepted Answer

Transactions between private parties in

Question 19

In commercial arbitration

Accepted Answer

A) the arbitration is presided over by an experienced arbitrator. 
B) the arbitrator's decision will bind the parties. 
C) the parties agree to resolve their dispute using this method. 
D) the arbitrator's decision can be easily enforced. 
E) all of the above 
A) the arbitration is presided over by an experienced arbitrator. 
B) the arbitrator's decision will bind the parties. 
C) the parties agree to resolve their dispute using this method. 
D) the arbitrator's decision can be easily enforced. 
E) all of the above

Question 20

A,based in Canada,enters into a contract for the sale of goods to B in Germany.The contract provides that A is to make the goods available to B at A's own warehouse.In this case,the arrangement between A and B is

Accepted Answer

A) a DDP contract. 
B) an FOB contract. 
C) a CIF contract. 
D) an EXW contract. 
E) none of the above 
A) a DDP contract. 
B) an FOB contract. 
C) a CIF contract. 
D) an EXW contract. 
E) none of the above

Exam 30: International Business Transactions

Under Chapters 19 and 20 of NAFTA,in the event of a dispute,the Extraordinary Challenge Committee is the first body before which an arbitration is heard.

Explain the purpose of the GATT and the WTO.

The decision to invest in a foreign jurisdiction carries with it many risks.The possibility of the host country government assuming ownership of a foreign investor's assets is referred to as

Explain the greatest fear of a foreign investor who invests in a developing country.

What test does Investment Canada apply in order to authorize a foreign acquisition of a large Canadian business?

An export sale normally requires at least four documents.These include all of the following EXCEPT

Conditions attached by a host country to a foreign investment are usually referred to as performance requirements.

Export Industries Ltd.,a Canadian corporation with a factory in London,Ontario,agrees to sell a customer in Germany 2000 microwave ovens FOB Lufnaia Airlines,Toronto,Pearson Airport.Which of the following statements is correct?

A,based in Canada,agrees to sell goods to B in Australia.The contract provides that B will manage shipment of the goods and A will deliver the goods to and load them on a carrier designated by B.In this case,A and B have entered into

The World Trade Organization provides two procedures for the resolution of disputes between countries.One way is to request the WTO Council to appoint a "panel" to adjudicate the dispute; the other way is

A large Korean car manufacturer has just built a new model car which it is going to sell in Canada.In Korea the car will be sold for the Canadian equivalent of $25 000.00 but to get into the market in Canada the car will be sold for $15 900.00 Canadian.In this case,the company has engaged in

Foreign investment occurs when

The best means of establishing the proper law for an international contract is

The invoice is of special importance in the international sale of goods.It not only provides information to the parties to the transaction,but also

Foreign direct investment (FDI)is not normally conducted through the establishment of

Where a Canadian company makes an investment in a foreign country,Canada is considered to be the "host" country.

Explain how private,public,and public international law come into play in international transactions.

In commercial arbitration

A,based in Canada,enters into a contract for the sale of goods to B in Germany.The contract provides that A is to make the goods available to B at A's own warehouse.In this case,the arrangement between A and B is

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Electronic Commerce

Privacy

Filters