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The principle of comity states that the courts of one country will not examine the validity of government acts of a foreign country within that country's own borders.

A) True
B) False

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Equity International Inc., a U.S. firm, and Finance Invest Ltd., a firm in Great Britain, are parties to a contract with a choice-of-forum clause. The forum specified in the clause must be within the geographic boundaries of


A) the United States.
B) Great Britain.
C) none of the choices.
D) any "choice," or superior, forum.

E) B) and D)
F) A) and C)

Correct Answer

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Under the U.S. Constitution, Congress can impose export taxes.

A) True
B) False

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False

Because international contracts cross the laws of multiple countries, parties to an international contract can choose the law that will apply to the contract.

A) True
B) False

Correct Answer

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The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is


A) a dumping duty.
B) an antidumping duty.
C) a quota.
D) a tariff.

E) A) and B)
F) C) and D)

Correct Answer

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U. S. law allows U.S. citizens, including private companies to engage in the commercial exploration and exploitation of space resources.

A) True
B) False

Correct Answer

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Energy Company, a U.S. firm, and Fresh Petro, a Dutch firm, enter into a contract that includes an arbitration clause. This clause must provide that the arbitrator will be


A) any specified third party.
B) the American Arbitration Association.
C) the Dutch Arbitration Organization.
D) the International Chamber of Commerce.

E) None of the above
F) A) and D)

Correct Answer

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A

Global Project, a U.S. firm, owns property in Hong Kong. The government of China seizes the property. The firm claims that this is confiscation. The government claims that it is expropriation. The difference concerns


A) the location of the seizure and the nature of its government.
B) the purpose of the seizure and the payment of compensation.
C) the business of the firm and the citizenship of its owners.
D) none of the choices.

E) B) and D)
F) A) and C)

Correct Answer

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Burger Heaven, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger Heaven's intellectual property in Canada in return for a fee and a promise to follow Burger Heaven's guidelines and standards. This is


A) a franchise.
B) a distribution agreement.
C) a subsidiary.
D) direct exporting.

E) B) and C)
F) None of the above

Correct Answer

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Restrictions on imports include quotas and tariffs.

A) True
B) False

Correct Answer

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Because business activities can affect national interests, nations impose laws to restrict or facilitate international business.

A) True
B) False

Correct Answer

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Regional trade agreements and associations help to minimize trade barriers among nations.

A) True
B) False

Correct Answer

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The U.S. National Aeronautics and Space Administration launches a commercial satellite that falls out of orbit and returns to earth outside U.S. territory. All nations are to assist in recovering the satellite under


A) the Rescue Agreement.
B) the Outer Space Treaty.
C) the Liability Convention.
D) the Commercial Space Launch Act.

E) B) and C)
F) A) and D)

Correct Answer

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In the United States, each government agency that operates or authorizes spacecraft is responsible for complying with U.S. law and international treaties.

A) True
B) False

Correct Answer

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Courts apply International law in the interest of maintaining judicial power across borders.

A) True
B) False

Correct Answer

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International space law consists of international treaties primarily negotiated by the United States and Russia.

A) True
B) False

Correct Answer

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Overland Rail Corporation, a U.S. firm, owns property in India. The government of India seizes the property for a proper public purpose and pays the firm just compensation. This is


A) confiscation.
B) the act of state doctrine.
C) the doctrine of sovereign immunity .
D) expropriation .

E) None of the above
F) A) and B)

Correct Answer

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The United States taxes each barrel of imported oil at a flat rate. This is


A) an antidumping duty.
B) a dumping duty.
C) a quota.
D) a tariff.

E) None of the above
F) A) and B)

Correct Answer

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Consolidated Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Consolidated contracts with Doha Ltd., an Egyptian firm, to enter into contracts in certain countries on behalf of Consolidated. This is


A) a distribution agreement.
B) an agency relationship.
C) indirect exporting.
D) direct exporting.

E) C) and D)
F) A) and D)

Correct Answer

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B

Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of


A) the act of state doctrine.
B) the doctrine of sovereign immunity.
C) the principle of comity.
D) the Foreign Sovereign Immunities Act.

E) A) and B)
F) A) and C)

Correct Answer

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