Question 1

In Gaskin v.Stumm Handel GmbH,the District Court ruled:

Accepted Answer

A)  That employment contracts must be in writing. 
B)  That the plaintiff was excused from performing a contract written in German because he understood only English. 
C)  That the contract was unconscionable because it was written in a language foreign to the plaintiff. 
D)  That the plaintiff's failure to speak or read German was not grounds for invalidating an employment contract written in that language. 
A)  That employment contracts must be in writing. 
B)  That the plaintiff was excused from performing a contract written in German because he understood only English. 
C)  That the contract was unconscionable because it was written in a language foreign to the plaintiff. 
D)  That the plaintiff's failure to speak or read German was not grounds for invalidating an employment contract written in that language.

Question 2

Weigh the risks and benefits of entering the international market with those of entering or doing business in the domestic market.

Accepted Answer

Weighing the risks and benefits of enter

Question 3

Which of the following does not accurately characterize export management companies?

Accepted Answer

A)  They act as advisors or consultants. 
B)  They engage in foreign market research. 
C)  They exhibit goods at foreign trade shows. 
D)  They use their extensive sales contracts to market the products of other companies. 
A)  They act as advisors or consultants. 
B)  They engage in foreign market research. 
C)  They exhibit goods at foreign trade shows. 
D)  They use their extensive sales contracts to market the products of other companies.

Question 4

The type of risk that includes controls on exports,imports,controls on the movement of currency,restrictions on licensing and investment,and controls over physical property located in a country is:

Accepted Answer

A)  Legal risk. 
B)  Political risk. 
C)  Economic risk. 
D)  Currency risk. 
A)  Legal risk. 
B)  Political risk. 
C)  Economic risk. 
D)  Currency risk.

Question 5

In Dayan v.McDonald's Corporation,the court ruled that:

Accepted Answer

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. 
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.

Question 6

Why do the risks to the firm increase as the penetration of the foreign market increases?

Accepted Answer

As a firm increases its penetration into

Question 7

Compare and contrast the benefits and risks of direct and indirect exporting.

Accepted Answer

Direct and indirect exporting both have

Question 8

Global sourcing is the term commonly used to describe the process by which a firm attempts to locate and purchase goods or services on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 9

The premise that suggests nations should concentrate their efforts on producing those goods that they can make most efficiently and with minimal effort and waste is:

Accepted Answer

A)  Specialization. 
B)  Absolute advantage. 
C)  Competitive trade. 
D)  None of the above. 
A)  Specialization. 
B)  Absolute advantage. 
C)  Competitive trade. 
D)  None of the above.

Question 10

Small and medium-size companies have little to contribute to the international marketplace.

Accepted Answer

A) True 
 B)False

Question 11

International business may be classified into which of the following three categories:

Accepted Answer

A)  Trade, import/export, foreign exchange. 
B)  International licensing agreements, investments, law. 
C)  Trade, international licensing agreements, investment. 
D)  International licensing agreements, trade, franchising. 
A)  Trade, import/export, foreign exchange. 
B)  International licensing agreements, investments, law. 
C)  Trade, international licensing agreements, investment. 
D)  International licensing agreements, trade, franchising.

Question 12

Design a business plan for doing business in the Middle East,addressing religious and cultural differences.

Accepted Answer

When creating a business plan for doing

Question 13

Intellectual property rights are valuable assets that can be licensed for use to others through a document collection international sales contract.

Accepted Answer

A) True 
 B)False

Question 14

Two examples of nontariff barriers that refer to quantitative restrictions on importing and a total or near total ban on trade respectively are:

Accepted Answer

A)  Partial embargoes, embargoes. 
B)  Trade seizures, limits. 
C)  Embargoes, quotas. 
D)  Quotas, embargoes. 
A)  Partial embargoes, embargoes. 
B)  Trade seizures, limits. 
C)  Embargoes, quotas. 
D)  Quotas, embargoes.

Question 15

Firms that assist indirect exporters and are licensed to operate under the antitrust laws of the U.S.are:

Accepted Answer

A)  Export management companies. 
B)  Indirect exporter merchants. 
C)  Export trading companies. 
D)  None of the above. 
A)  Export management companies. 
B)  Indirect exporter merchants. 
C)  Export trading companies. 
D)  None of the above.

Question 16

Compare and contrast the three basic forms of international business or market entry strategies.

Accepted Answer

The three basic forms of international b

Question 17

Compare and contrast the ethical and strategic aspects of providing contract interpretation services to foreign business partners.

Accepted Answer

When providing contract interpretation s

Question 18

Most of the foreign direct investment in the United States has come from:

Accepted Answer

A)  Canada. 
B)  Japan. 
C)  United Kingdom. 
D)  Germany. 
E)  None of the above. 
A)  Canada. 
B)  Japan. 
C)  United Kingdom. 
D)  Germany. 
E)  None of the above.

Question 19

Compare and contrast possible methods of managing currency risk.

Accepted Answer

Managing currency risk can be done throu

Question 20

The shipment of goods or rendering of services to a foreign buyer located in a foreign country is:

Accepted Answer

A)  Importing. 
B)  Exporting. 
C)  Foreign exchange. 
D)  A and B. 
A)  Importing. 
B)  Exporting. 
C)  Foreign exchange. 
D)  A and B.

Exam 1: Introduction to International Business

In Gaskin v.Stumm Handel GmbH,the District Court ruled:

Weigh the risks and benefits of entering the international market with those of entering or doing business in the domestic market.

Which of the following does not accurately characterize export management companies?

The type of risk that includes controls on exports,imports,controls on the movement of currency,restrictions on licensing and investment,and controls over physical property located in a country is:

In Dayan v.McDonald's Corporation,the court ruled that:

Why do the risks to the firm increase as the penetration of the foreign market increases?

Compare and contrast the benefits and risks of direct and indirect exporting.

Global sourcing is the term commonly used to describe the process by which a firm attempts to locate and purchase goods or services on a worldwide basis.

The premise that suggests nations should concentrate their efforts on producing those goods that they can make most efficiently and with minimal effort and waste is:

Small and medium-size companies have little to contribute to the international marketplace.

International business may be classified into which of the following three categories:

Design a business plan for doing business in the Middle East,addressing religious and cultural differences.

Intellectual property rights are valuable assets that can be licensed for use to others through a document collection international sales contract.

Two examples of nontariff barriers that refer to quantitative restrictions on importing and a total or near total ban on trade respectively are:

Firms that assist indirect exporters and are licensed to operate under the antitrust laws of the U.S.are:

Compare and contrast the three basic forms of international business or market entry strategies.

Compare and contrast the ethical and strategic aspects of providing contract interpretation services to foreign business partners.

Most of the foreign direct investment in the United States has come from:

Compare and contrast possible methods of managing currency risk.

The shipment of goods or rendering of services to a foreign buyer located in a foreign country is:

International Law and the Worlds Legal Systems

Resolving International Commercial Disputes

Sales Contracts and Excuses for Nonperformance

The Documentary Sale and Terms of Trade

The Carriage of Goods and the Liability of Air and Sea Carriers

Bank Collections, Trade Finance, and Letters of Credit

National Lawmaking Powers and the Regulation of Ustrade

Gatt Law and the World Trade Organization: Basic Principles

Laws Governing Access to Foreign Markets

Regulating Import Competition and Unfair Trade

Imports, Customs, and Tariff Law

The Regulation of Exports

North American Free Trade Law

The European Union and Other Regional Trade Areas

International Marketing Law: Sales Representatives, Advertising, and Ethical Issues

Licensing Agreements and the Protection of Intellectual Property Rights

Takings and National Controls on Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters