Test Bank for International Business Law and Its Environment, 11th Edition by Richard Schaffer
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Course
Business law
Institution
Business Law
Test Bank for International Business Law and Its Environment 11e 11th Edition by Richard Schaffer, Filiberto Agusti, Lucien J. Dhooge, Gerlinde Berger-Walliser. Complete chapters (Chapter 1 to 21) test bank are included with answers.
Chapter 1: Introduction to International Business
Chapter 2: ...
Indicate whether the statement is true or false.
1. Freight forwarders act as the seller's or exporter's agent.
a. True
b. False
ANSWER: True
2. Trade consists of the import and export of goods or services.
a. True
b. False
ANSWER: True
3. Tariffs are barriers that have significant influence on how firms make their trade and investment decisions.
a. True
b. False
ANSWER: True
4. Intellectual property rights are valuable assets that can be licensed to a foreign licensee as a means to penetrate
a foreign market rather than establish a wholly owned subsidiary.
a. True
b. False
ANSWER: True
5. Indirect exporters commonly employ the services of export trading companies and export management
companies.
a. True
b. False
ANSWER: True
6. Currency exchange risk cannot be managed because the fluctuations of currencies cannot be predicted.
a. True
b. False
ANSWER: False
7. A host country refers to the country under whose laws the investing corporation was created or is
headquartered.
a. True
b. False
ANSWER: False
Page 1
,Name: Class: Date:
Chapter 01 11e
8. The three forms of international business are exporting, importing, and trading.
a. True
b. False
ANSWER: False
9. The holder of intellectual property has the ability to license the same technology to multiple companies, including
competitors.
a. True
b. False
ANSWER: True
10. A company that makes authorized copies of a movie and sells the copies on DVDs is infringing on the movie
owner’s intellectual property rights.
a. True
b. False
ANSWER: False
11. Indirect exporting, not direct exporting, involves sales through sales agents or to foreign distributors.
a. True
b. False
ANSWER: True
12. A sovereign nation has the power to nationalize a private enterprise without compensation.
a. True
b. False
ANSWER: True
13. A home country refers to the country under whose laws the investing corporation does business.
a. True
b. False
ANSWER: False
14. Freight forwarders are regulated by the Department of State, arrange the transportation of goods for the
importer, and represent the importer with customs.
a. True
b. False
ANSWER: False
Page 2
,Name: Class: Date:
Chapter 01 11e
15. International licensing agreements are contracts by which the holder of intellectual property grants certain rights
in that property to a third firm for eternity.
a. True
b. False
ANSWER: False
16. Customs brokers are independent inspection officials who have the responsibilities of inspecting and regulating
the shipment of goods and services imported into the United States.
a. True
b. False
ANSWER: False
17. Importing is the shipment of goods or rendering of services to a foreign buyer located in a foreign country.
a. True
b. False
ANSWER: False
18. Small and medium-size companies have a competitive advantage to compete with large multinational corporations
due to their ability to quickly adjust, and therefore have little to contribute to the international marketplace.
a. True
b. False
ANSWER: False
19. The World Intellectual Property Organization defines intellectual property rights as “legal rights which result from
intellectual activity in the industrial, scientific, literary, and artistic fields.”
a. True
b. False
ANSWER: True
Indicate the answer choice that best completes the statement or answers the question.
20. A cooperative business arrangement between two or more companies may be a:
a. partnership.
b. joint venture.
c. corporation.
d. all of these are correct.
ANSWER: d
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, Name: Class: Date:
Chapter 01 11e
21. Firms that assist indirect exporters and are licensed to operate under the antitrust laws of the U.S. are:
a. export management companies.
b. indirect exporter merchants.
c. export trading companies.
d. none of the above.
ANSWER: c
22. International business may be classified into which of the following three categories:
a. trade, import/export, foreign exchange.
b. international licensing agreements, investments, law.
c. trade, international licensing agreements, investment.
d. international licensing agreements, trade, franchising.
ANSWER: c
23. The concept of local participation refers to:
a. a portion of the employees of the business in the host country will be nationals of the home country.
b. employees of the business contribute a certain number of hours to community service.
c. a portion of the business must be owned by nationals of the host country.
d. the host country retains mineral rights.
ANSWER: c
24. International licensing agreements pertain to forms of intellectual property such as:
a. government property.
b. trademarks, copyrights, patents.
c. real estate, personal property.
d. contracts.
ANSWER: b
25. The process of buying goods from a foreign supplier and entering them into the customs territory of a different
country is:
a. exporting.
b. international exchange.
c. trade by design.
d. none of these are correct.
ANSWER: d
Page 4
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