MIDTERM EXAM

Course Title: INTERNATIONAL BUSINESS LAW Lecturer’s Signature

Time allowed: 60 miniutes

Date: 09 November 2020 Date: ………………………………

Time: 10:00
Department’s Signature
Student name:

Student ID No:
Date: ………………………………
Class: INS3022-02

This exam paper contains …3… pages.

Total mark (written in numbers):
Marker’s signature:

PART A (60 pts, 4pt/question)

1. Alternatives Disputes Resolution are preferred to use in resolving international
commercial disputes are:
a. Arbitration.
b. Mediation.
c. both a and b.
2. International business can be classified into categories as:
a. trade in goods.
b. trade in services.
c. protection and licensing of intellectual property.
d. foreign direct investment
e. all of above mentioned categories
3. Reasons for FDI include:
a. To take advantage of the host country’s natural or human resources
b. To avoid trade barriers
c. Both a) and b)
4. What is “goods” in context of the international sale of goods?
a. Tangible things

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 b. Intellectual property
c. Real property
d. All of the above
5. One of the biggest external risk that companies face is the lack of legal protection for
their products and trademarks in a foreign country
a. True
b. False
6. What are differences between Civil Law and Common Law countries? (there may be
more than 1 correct choice)
a. Role of Parliament
b. Role of judges
c. Role of Cabinet/Government
d. Role of different legal sources
7. Arbitration award (there may be more than 1 correct choice)
a. Could not be appealed by the parties
b. Could be made only after failure of mediation
c. Could be enforced/executed if loosing party did not obey
d. Is always published for general reference
8. A closed economy is one in which: 
a) Imports exactly equal exports, so that trade is balanced. 
b) Domestic firms invest in industries overseas. 
c) The home economy is isolated from foreign trade 
d) Saving exactly equals investment at full employment.
9. If a company wishes to enter a market in which the government has changed several
times in the last two years, it will need to evaluate its risk associated with the
a. external economic relations b. internal economic relations
c. domestic economic conditions d. political/economic environment
10. Nationalization is
a. a form of political/economic environment risk that can occur if a government
focuses the transfer of a firm‘s ownership from private to the state
b. generally associated with a large amount of compensation by a government to a
firm
c. a principle that state no nation has the right to judge or challenge the internal action
of another state, provides that state has proceeded justly
d. discrimination against foreign firms.
e. associated with government compensation for loss as a result of privatization
11. Which one below is NOT an Multinational Enterprise (Company)?
a. FORD, headquartered in the US with a subsidiary in Hai Duong, VN.
b. SAMSUNG, headquartered in South Korea with 2 subsidiaries in Bac Ninh and
Thai Nguyen, VN.
c. Trung Nguyen , a coffee corporation in VN with many overseas offices.

12. An Multinational Enterprise (Company) which

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 a. is subject to international laws.
b. has a parent corporation and its subsidiaries located in different countries.
c. has 2 or more parent corporations located in different countries.

13. Most Bilateral Investment Treaties usually

a. set up conditions for foreign investment from another country invested in a host
country.
b. grant certain guarantees by a host country for foreign investors from another
country.
c. both a and b.

14. Which one below does NOT have/describe regional investment policies?
a. ASEAN b. UN c. NAFTA (North American Free Trade Agreement)
15. Which one below is not considered as source of international business law?
a. Customary practice
b. International treaties.
c. Case law.
d. Report of WTO
PART B (40 pts, 20pts/question)
Discuss in detail and in your own English, i.e. do NOT COPY from the textbook, 2 following
topics. Note: any topic having the appearance of being copied from the textbook will be
graded zero.
1. Political risk for international business (20 pts)
2. Advantages of Arbitration and Mediation vs. Litigation in resolving international
commercial disputes. (20 pts)

END OF EXAM