Test Bank For International Business Law and Its Environment 10th Edition Richard Schaffer

Test Bank for International Business Law and Its Environment, 10th Edition, Richard Schaffer
Test Bank for International Business Law and Its

Environment, 10th Edition, Richard Schaffer
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vironment-10th-edition-richard-schaffer/
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True / False
1. The WTO Agreement on Agriculture is designed to increase export opportunities for agricultural products and to
reduce government subsidies.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Hard - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Laws Governing Access to Foreign Markets
KEYWORDS: Bloom's: Application
DATE CREATED: 8/24/2017 3:40 PM
DATE MODIFIED: 8/24/2017 3:40 PM
2. Trade-related investment measures are those restrictions a nation places or foreign investment that adversely affect
trade in goods or services.
a. True
b. False
ANSWER: True
POINTS: 1
KEYWORDS: Bloom's: Comprehension
3. A product standard is a technical requirement imposed by the Department of Commerce's technical bureau as to the
product's characteristics before permitted into the country.
a. True
b. False
ANSWER: False
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 1
KEYWORDS: Bloom's:Comprehension
4. The Flammable Fabrics Act is an example of a technical regulation that is in violation of the principles of GATT/WTO.
a. True
b. False
ANSWER: False
POINTS: 1
STATE STANDARDS: United States - AICPA - BUSPROG - BB-Legal
KEYWORDS: Bloom's:Application
5. Trade discrimination can occur even when imported and domestic products are treated the same.
a. True
b. False
ANSWER: True
POINTS: 1
6. After many years of work by the European Union Commission, most European countries have agreed on similar
standards for consumer products.
a. True
b. False
ANSWER: False
POINTS: 1
KEYWORDS: Bloom's: Knowledge
7. The GATT Agreement on Technical Barriers to Trade governs the use of technical regulations, product standards,
testing, and certifications among WTO member countries.
a. True
b. False
ANSWER: True
POINTS: 1
8. The principle of least-restrictive trade means that otherwise valid restrictions on trade can be no more restrictive than
necessary to achieve the goals for which they were imposed.
a. True
b. False
ANSWER: True
POINTS: 1
9. The GATT dispute panel found that Thailand's regulations on the importation of cigarettes was justified.
a. True
b. False
ANSWER: False
POINTS: 1
KEYWORDS: Bloom's: Analysis
10. Under GATT, an exception from the national treatment provision is granted to allow governments to favor domestic
suppliers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
11. The Agreement on Government Procurement has the force of international law and applies to all WTO countries.
a. True
b. False
ANSWER: False
POINTS: 1
12. The Agreement on Government Procurement reverses the general GATT rules that allow government agencies to
favor domestic products.
a. True
b. False
ANSWER: True
POINTS: 1
13. Agricultural products, in general, have few barriers to trade placed upon them.
a. True
b. False
ANSWER: False
POINTS: 1
14. In 1947, the international community created the 1947 GATT and incorporated into the context of the principles is the
protection of intellectual property to encourage innovation and protection.
a. True
b. False
ANSWER: False
POINTS: 1
KEYWORDS: Bloom's:Knowledge
15. Trade retaliation under U.S. Section 301 is mandatory if the U.S. trade representative determines a country permits
forced labor.
a. True
b. False
ANSWER: False
POINTS: 1
16. Super 301 was created by Congress as a fast track measure to be used against countries that fail to protect U.S.
intellectual property rights.
a. True
b. False
ANSWER: False
POINTS: 1
STATE STANDARDS: United States - AICPA - BUSPROG - BB-Legal
17. The symbol of an approved product in Japan is the government-authorized Japan Industrial Standards Mark.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
18. ISO 9000 is a series of rules governing the importation of technology products from a WTO-member nation.
a. True
b. False
ANSWER: False
POINTS: 1
19. The GATT 1994 Agreement on Import Licensing Procedures provides strict guidelines for licensing paperwork.
Licenses can be refused if any of the procedures are not strictly followed.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Laws Governing Access to Foreing Markets
20. Section 301 of the Trade Act of 1974 permits the United States to unilaterally retaliate against foreign companies that
discriminate against U.S. goods or services.
a. True
b. False
ANSWER: False
POINTS: 1
21. The GATT Agreement on Technical Barriers to Trade sets minimum international standards for product performance,
design, safety, or efficiency.
a. True
b. False
ANSWER: False
POINTS: 1
22. The WTO General Agreement on Trade in Services applies basic GATT Principles to service industries.
a. True
b. False
ANSWER: True
POINTS: 1
23. Only U.S. and Canadian manufacturers may submit their products to independent laboratories for testing in order to
attach the CE mark before admitted into the EU.
a. True
b. False
ANSWER: False
POINTS: 1
KEYWORDS: Bloom's:Comprehension
24. The Japanese technical barriers are imposed to protect its citizens and based on performance standards.
a. True
b. False
ANSWER: False
POINTS: 1
25. The United States Buy American Act is in violation of the principles of GATT/WTO.
a. True
b. False
ANSWER: False
POINTS: 1
26. Domestic agriculture support programs are politically charged issues that are obstacles to achieving the principles of
GATT/WTO.
a. True
b. False
ANSWER: True
POINTS: 1
KEYWORDS: Bloom's:Evaluation
27. Under the Recognition of Licensing and Professional Qualifications, countries have broad discretion to regulate
professional licensing and to recognize or not recognize professional licenses granted by foreign countries.
a. True
b. False
ANSWER: True
POINTS: 1
Multiple Choice
28. Restrictions a nation places on foreign investment that adversely affect trade in goods or services are called:
a. trade restrictions.
b. trade-related investment measures.
c. tariffs.
d. foreign interest restrictions.
ANSWER: b
POINTS: 1
QUESTION TYPE: Multiple Choice
29. Intellectual property rights do not include:

a. copyrights.
b. patents.
c. generic pharmaceuticals .
d. trademarks.
e. all of these are part of intellectual property rights.
ANSWER: c
POINTS: 1

30. Which of the following statements regarding the 1994 Agreement on Technical Barriers to Trade is false?
a. All technical regulations shall be applied on a nondiscriminatory basis, without regard to the national origin of
the products.
b. Disputes between countries may be referred to the WTO for negotiation and settlement.
c. Whenever possible, product requirements should be based on the design and descriptive characteristics of a
product, rather that its performance.
d. Proposed standards must be published and made available to foreign countries.
e. All of these are true.
ANSWER: c
POINTS: 1
31. ISO 9000 refers to:

a. standards used for assuring product quality through product design and manufacturing process.
b. a series of import regulations imposed by the European Union.
c. Japanese trade restrictions against U.S. telecommunications companies that were eventually repealed.
d. a trade agreement established between the U.S. and the European Union that will significantly reduce barriers
to trade.
ANSWER: a
POINTS: 1
32. Regarding Thailand's importation of cigarettes:

a. it was found that cigarettes made in the U.S. could not meet Thailand's standards.
b. Thailand's licensing system for cigarettes was not justified.
c. Thailand's licensing system for cigarettes was needed to protect its domestic industries.
d. the U.S. was not allowing Thailand to import enough U.S. cigarettes to meet demand.
ANSWER: b
POINTS: 1
33. Which of the following statements regarding the 1994 Agreement on Import Licensing Procedures is false?
a. Applications should not be refused because of minor errors in paperwork.
b. The WTO Import Licensing Committee must be notified if any new products will become subject to licensing
requirements.
c. It calls for the procedures to be fair, reasonable, and nondiscriminatory.
d. Where licenses are used to administer quotas, the amount of the quota already used must be published for all
importers to see.
e. All of these are correct.
ANSWER: e
POINTS: 1
34. The WTO Agreement on Government Procurement (1994):

a. requires fair, open, and nondiscriminatory procurement practices.
b. has been extended to cover electronic procurements.
c. applies only to those countries who have signed it.
d. applies to the purchase of goods and services over $182,000.
e. all of these are correct.
ANSWER: e
POINTS: 1

35. Which of the following is not an instance in which the U.S. Trade Representative may take retaliatory action against a
foreign country?
a. The foreign country's policies violate the legal rights of the U.S. and restrict U.S. commerce.
b. The foreign government permits forced labor.
c. The foreign government's policies are unreasonable or discriminatory and burden or restrict U.S. trade or
foreign investment.
d. None of these are discretionary, rather, retaliation by the U.S. Trade Representative is mandatory in all three
instances.
ANSWER: a
POINTS: 1
36. ISO 14000 refers to:

a. standards used for assuring product quality through design and manufacturing process.
b. guidelines in environmental management and labeling.
c. European Union import regulations.
d. a trade agreement between the U.S. and EU designed to reduce barriers to trade.
ANSWER: b
POINTS: 1
TOPICS: Law Governing Access to Foreign Markets
37. A law or regulation affecting a product's characteristics that must be met before a product can enter a country is a:
a. product standard.
b. technical regulation.
c. product limitation.
d. government procurement law.
ANSWER: b
POINTS: 1
38. In the United States, technical regulations and product standards can be set by:
a. The Department of Agriculture.
b. The Consumer Product Safety Commission.
c. The Food and Drug Administration.
d. The Department of Transportation.
e. all of these are correct.
ANSWER: e
POINTS: 1
39. Which of the following statements regarding technical barriers to trade is false?
a. Despite decades of work by the European Union, thousands of new national standards have arisen.
b. Japan and the United States have had a long history of disputes over Japanese technical barriers to trade.
c. Most standard setting in the European Union takes place through the European Committee for Standardization.
d. Japanese technical regulations and standards are readily available to importers and exporters.
e. All of these are true.
ANSWER: d
POINTS: 1
40. The majority of the gross domestic product in the U.S. is produced by:
a. service industries.
b. manufacturing industries.
c. trade in services.
d. technology industries.
ANSWER: a
POINTS: 1
41. Thailand's import restrictions on cigarettes:

a. were justified under GATT article XI as protection of domestic agriculture.
b. were justified in the interest of public health.
c. were not justified under GATT article XI as protection of domestic agriculture.
d. were not justified because they violated the principle of free trade.
ANSWER: c
POINTS: 1
42. Section 301 refers to:

a. a law that permits the United States to retaliate unilaterally against other countries that violate GATT.
b. a law that permits the United States to retaliate unilaterally against countries that are unfair in restricting the
import of U.S. goods or services.
c. a law that contains four different provisions.
d. a law that is based on the Omnibus Trade and Competitiveness Act of 1988.
e. all these are true regarding Section 301.
ANSWER: e
POINTS: 1
43. The establishment and giving notice of new technical standards for products well in advance to permit foreign
manufacturer and importer response is referred to as:
a. tariffication.
b. countervailing procedures.
c. transparency
d. non-discrimination.
ANSWER: c
POINTS: 1
44. The principle that limits restrictions on trade to the lowest level possible to achieve the goals for which they are
imposed is:
a. trade barrier limitation principle.
b. fair trade principle.
c. principle of least-restrictive trade.
d. principle of nominal trade barriers.
ANSWER: c
POINTS: 1

45. The first multilateral, legally enforceable agreement to establish rules for international trade in services was:
a. The General Agreement on Trade in Services of 1994.
b. Trade in Services Act of 1947.
c. The Multilateral Agreement on Trade in Services of 1994.
d. The General Agreement on Trade in Services of 1947.
ANSWER: a
POINTS: 1
46. Which of the following statements is true regarding trade in agriculture?

a. The United States exports almost 50 percent of its agricultural production.
b. In general, governments let agricultural markets operate on the free trade principle.
c. Nations do not mind being reliant on other countries for their food supply.
d. Most countries impose strict restrictions on both raw and processed food products.
ANSWER: d
POINTS: 1
47. Aeroflop, a U.S. firm, wants to sell several million dollars-worth of airplanes to a government-owned airline in a
European country famous for cheese. In order to get the contract, Aeroflop agrees to pay a 5% kickback to another U.S.
company if that company agrees to buy all of its cheese from a seller in that European country.
a. Aeroflop's sale to the government-owned airlines is allowed under the Agreement on Government
Procurement.
b. Aeroflop's sale is prohibited because the Agreement on Government Procurement prohibits offsets.
c. Aeroflop's sale is allowable because the European nation is treating Aeroflop no less favorably than its
nationals.
d. The WTO dispute resolution panel must authorize both contracts prior to the sale.
ANSWER: b
POINTS: 1
48. Which of the following statements about the 1994 General Agreement on Trade in Services is false?
a. It is patterned after the concepts that GATT applies to trade in goods.
b. It expands provisions governing trade in services provided for in the original GATT agreement.
c. It prohibits a requirement that local inventors must own a percentage of a foreign services company.
d. It allows each country to list exceptions to the General Agreement for certain service industries.
ANSWER: a
POINTS: 1
49. In EU Measures Concerning Meat and Meat Products, the WTO Dispute Resolution Panel decided:
a. the EC's regulation permitting zero residue violates the SPS agreement because internationally accepted
standards permit residue.
b. where no internationally accepted standards exist, the EC ban on that hormone was not allowed because it was
not based on a risk assessment using scientifically accepted principals.
c. the decision of the Dispute Resolution Body was overturned by the WTO Appellate Body in January of 1998.
d. both the EC's regulation permitting zero residue violates the SPS agreement because internationally accepted
standards permit residue and where no internationally accepted standards exist, the EC ban on that hormone
was not allowed because it was not based on a risk assessment using scientifically accepted principals are true.
ANSWER: d
POINTS: 1
50. Countries must rely on internationally accepted standards or recommendations for the protection of their plants,
animals, and foodstuffs. The most notable are found in the _____.
a. Japan's keiretsu
b. Agricultural Act of 1948
c. The Law on the Entry and Exit Animal and Plant Quarantine
d. Codex Alimentarius
ANSWER: d
POINTS: 1
KEYWORDS: Bloom's:Synthesis
51. The WTO General Agreement on Trade in Services defines international services as:
a. international telephone calls.
b. consumption abroad.
c. U.S. Immigration officials.
d. both international telephone calls and consumption abroad.
ANSWER: d
POINTS: 1
Subjective Short Answer
52. Compare and contrast some of the remedies and sanctions under Section 301.
ANSWER: Answer not provided.
POINTS: 1
QUESTION TYPE: Subjective Short Answer
LEARNING OBJECTIVES: IBLE.SADE.12.1 - Comparative Analytical Questions
KEYWORDS: Bloom's: Evaluation
53. Consider the benefits and detriments of bringing an IPR dispute before the WTO and the USTR.
POINTS: 1
54. Compare and contrast the IPR-related/access dispute resolution procedures of GATT with those of WTO.
POINTS: 1
55. Write a note on the actions of foreign countries on recent attempts made in the U.S. to regulate cigarettes.
POINTS: 1

56. Consider the similarities and differences between situations in which the U.S. Trade Act of 1974 can be used instead
of the WTO dispute settlement procedures.
POINTS: 1
57. Compare and contrast unilateralism with bilateralism.

POINTS: 1
58. Craft a statutory addendum deeming what constitutes a valid, non-discriminatory "health regulation." Students might
wish to review GATT Article XX(b)'s to "protect human health" language.
POINTS: 1
LEARNING OBJECTIVES: IBLE.SADE.12.2 - Essay/Writing Assignments

Test Bank for International Business Law and Its Environment, 10th Edition, Richard Schaffer
59. Considering the problems with "mad cow" disease in the U.K. (and, perhaps, adjacent countries), write a regulation
pertaining to the import of European beef.
POINTS: 1
LEARNING OBJECTIVES: IBLE.SADE.12.2 - Essay/Writing Assignments
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Test Bank for International Business Law and Its

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29. Intellectual property rights do not include:

Copyright Cengage Learning. Powered by Cognero. Page 10

31. ISO 9000 refers to:

32. Regarding Thailand's importation of cigarettes:

34. The WTO Agreement on Government Procurement (1994):

Copyright Cengage Learning. Powered by Cognero. Page 12

36. ISO 14000 refers to:

41. Thailand's import restrictions on cigarettes:

42. Section 301 refers to:

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46. Which of the following statements is true regarding trade in agriculture?

Subjective Short Answer

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57. Compare and contrast unilateralism with bilateralism.

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