Question 1

Two types of countertrade include:

Accepted Answer

A)  Repatriation; convertibility 
B)  Barter; counterpurchase 
C)  Joint venture; technology transfer 
D)  None of the above

Question 2

Discuss the various political risks facing the international businessperson and how one might minimize those risks.

Accepted Answer

The answer of Discuss the various political risks facing the...

Question 3

In general, __________ is the riskiest of international business transactions:

Accepted Answer

A)  Indirect exporting 
B)  Licensing 
C)  Direct foreign investment 
D)  Sale of services

Question 4

Evergreen statutes limit an employer's ability to terminate an employee or agent.

Accepted Answer

A) True 
 B)False

Question 5

Some countries block the repatriation of money earned or invested in their countries.

Accepted Answer

A) True 
 B)False

Question 6

Describe the difference between indirect and direct exporting and the advantages of each. Discuss the various third parties available to exporters that help facilitate the export process and minimize a firm's risks.

Accepted Answer

The answer of Describe the difference between indirect and direct...

Question 7

__________ is a complicated form of barter, comprising a chain of buyers and sellers in different markets:

Accepted Answer

A)  Counterpurchase 
B)  Buy-back 
C)  Protocol agreement 
D)  Switch trading

Question 8

Private individuals may use the International Court of Justice to settle commercial disputes.

Accepted Answer

A) True 
 B)False

Question 9

Lex Mercatoria refers to the process by which day-to-day practices become codified into international customary law.

Accepted Answer

A) True 
 B)False

Question 10

A government corporation that assists U.S. investments in developing countries by providing loans, investment services, and political risk insurance is:

Accepted Answer

A)  OPIC 
B)  MIGA 
C)  WTO 
D)  GATT

Question 11

Countertrade often is used to overcome currency convertibility or repatriation problems.

Accepted Answer

A) True 
 B)False

Question 12

International harmonization in the area of contract law will have the effect of increasing costs in international contract formation.

Accepted Answer

A) True 
 B)False

Question 13

Protection of domestic industries is often a reason by countries in imposing trade barriers.

Accepted Answer

A) True 
 B)False

Question 14

The threat of foreign governments nationalizing industries or expropriating a foreign company's assets has been the dominant trend over the past few decades.

Accepted Answer

A) True 
 B)False

Question 15

The four types of international business transactions are importing, exporting, trade in services, and countertrade.

Accepted Answer

A) True 
 B)False

Question 16

Trade barriers, expropriation, and nationalization are all forms of:

Accepted Answer

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

Question 17

Trade in goods and direct foreign investment are good measures of globalization.

Accepted Answer

A) True 
 B)False

Question 18

A forward contract gives a party the right, but not the obligation, to buy or sell a currency at a fixed rate in the future.

Accepted Answer

A) True 
 B)False

Question 19

Currency exchange risk cannot be minimized because of the unpredictability of currency fluctuations.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a service of the International Chamber of Commerce:

Accepted Answer

A)  International Court of Arbitration 
B)  UCP 600 
C)  Incoterms 2020 
D)  Convention on Contracts for the International Sale of Goods (CISG)

Exam 1: Introduction to International Business Transactions

Two types of countertrade include:

Discuss the various political risks facing the international businessperson and how one might minimize those risks.

In general, __________ is the riskiest of international business transactions:

Evergreen statutes limit an employer's ability to terminate an employee or agent.

Some countries block the repatriation of money earned or invested in their countries.

Describe the difference between indirect and direct exporting and the advantages of each. Discuss the various third parties available to exporters that help facilitate the export process and minimize a firm's risks.

__________ is a complicated form of barter, comprising a chain of buyers and sellers in different markets:

Private individuals may use the International Court of Justice to settle commercial disputes.

Lex Mercatoria refers to the process by which day-to-day practices become codified into international customary law.

A government corporation that assists U.S. investments in developing countries by providing loans, investment services, and political risk insurance is:

Countertrade often is used to overcome currency convertibility or repatriation problems.

International harmonization in the area of contract law will have the effect of increasing costs in international contract formation.

Protection of domestic industries is often a reason by countries in imposing trade barriers.

The threat of foreign governments nationalizing industries or expropriating a foreign company's assets has been the dominant trend over the past few decades.

The four types of international business transactions are importing, exporting, trade in services, and countertrade.

Trade barriers, expropriation, and nationalization are all forms of:

Trade in goods and direct foreign investment are good measures of globalization.

A forward contract gives a party the right, but not the obligation, to buy or sell a currency at a fixed rate in the future.

Currency exchange risk cannot be minimized because of the unpredictability of currency fluctuations.

Which of the following is not a service of the International Chamber of Commerce: