Bus 410 Midterm 1 N || with Errorless Answers.
3 forms of international business correct answers trade, licensing and direct investment
Trade correct answers import/export/trade-in services
direct export correct answers exporter assumes responsibility for most of the export functions
indirect export correct answers Using intermediaries to handle exports (i.e. export trading
companies and export management companies)
International trading companies correct answers Middlemen who bring buyers and sellers
together by specializing in all aspects of import/export transactions
licensing correct answers renting intellectual property in exchange for royalties (in franchising,
one must adhere to all rules of base company)
Direct investment correct answers go into country and start a business
Tarbert Trading Ltd. v. Cometals, inc correct answers Case about red beans that originated in
Africa but were said to have been from the EEU. Claim and counterclaim were dismissed
because agreements that violate the law are void
Russian entertainment wholesale, Inc. v. Close-Up international, inc. correct answers Judgement
affirmed for the defendant. Close-Up could not sue Image for distributing multi-lingual DVDs,
saying that they were committing copyright infringement, because their rights were limited to
just selling the Russian version.
WIPO correct answers World Intellectual Property Org; specialized agency of the United Nations
- develops IP policies, coordinates registrations in some IP areas, resolves disputes
,WTO correct answers World Trade Org; a more uniform application and enforcement of their
national IP laws - their dispute settlement body resolves issues between governments
Transfer of technology correct answers sharing of scientific info, technology, and manufacturing
know-how between firms, universities or other institutions; accomplished through complex
licensing agreements (e.g. patents)
Foreign branch correct answers operations in the home country, but may be a branch office or
whole network system in foreign country
States cannot tax _____ (imports/exports) and the fed cannot tax _____ (imports/exports) correct
answers either; exports
foreign subsidiary correct answers foreign subsidiary: company under laws of the host country,
but owned and controlled by parent company in home country
joint venture correct answers cooperative business arrangement between two or more companies
for profit, may take the form of a partnership or corporation
Case: Union carbide corp gas Plant Disaster at Bhopal correct answers poisonous chemicals
leaked from a subsidiary in India to an American corporation, court upheld that the lawsuit be
held in India by forum non conveniens
Transatlantic Financing Corp. v. United States correct answers Iran sued for the cargo ship taking
a longer than expected route, however court affirmed for the United States because they had not
previously agreed on the route (1) and because the ship had no choice once it found out about the
war time blockade (2).
Gaskin v. Stumm Handel GMBH correct answers Gaskin, a US citizen, tried to sue in a US court
claiming that he could not read the german contract when signing it stating that problems had to
be resolved in a German court, but the suit was dismissed
, Tariff correct answers import duty or tax imposed on goods entering the customs territory of a
nation
non-tarriff barriers correct answers laws or administrative regulations that have the effect of
restricting access of foreign goods or services to a domestic market
quota: correct answers direct non-tarriff barrier; restricts how many units of an import that may
enter a country; international trade laws today restrict the use of quotas except in very limited
circumstances
Bernina Distributors v. Bernina Sewing Machine Co. correct answers Importer had assumed
exchange rate risk; cost increases and currency fluctuations alone do not render a contract too
"impractable" to perform
Currency controls: correct answers prohibiting residents from making payments in foreign
currency, any foreign payments unless on gov approval or through authorized bank accounts, the
removal of foreign currency by those traveling, and the exchange of foriegn currency for local
currency at other than the official rate of exchange
DIP SpA v. Comune di Bassano del Grappa correct answers foreign law risk; Italian law required
licensing for certain practices, upheld to German company who filed suit
expropriation correct answers taking by a government of privately owned assets with some
compensation
confescation correct answers taking by a government of privately owned assets without
compensation
Countries in transition correct answers applies to countries going from centrally planned
economies (based on communist doctrine) to free market
3 forms of international business correct answers trade, licensing and direct investment
Trade correct answers import/export/trade-in services
direct export correct answers exporter assumes responsibility for most of the export functions
indirect export correct answers Using intermediaries to handle exports (i.e. export trading
companies and export management companies)
International trading companies correct answers Middlemen who bring buyers and sellers
together by specializing in all aspects of import/export transactions
licensing correct answers renting intellectual property in exchange for royalties (in franchising,
one must adhere to all rules of base company)
Direct investment correct answers go into country and start a business
Tarbert Trading Ltd. v. Cometals, inc correct answers Case about red beans that originated in
Africa but were said to have been from the EEU. Claim and counterclaim were dismissed
because agreements that violate the law are void
Russian entertainment wholesale, Inc. v. Close-Up international, inc. correct answers Judgement
affirmed for the defendant. Close-Up could not sue Image for distributing multi-lingual DVDs,
saying that they were committing copyright infringement, because their rights were limited to
just selling the Russian version.
WIPO correct answers World Intellectual Property Org; specialized agency of the United Nations
- develops IP policies, coordinates registrations in some IP areas, resolves disputes
,WTO correct answers World Trade Org; a more uniform application and enforcement of their
national IP laws - their dispute settlement body resolves issues between governments
Transfer of technology correct answers sharing of scientific info, technology, and manufacturing
know-how between firms, universities or other institutions; accomplished through complex
licensing agreements (e.g. patents)
Foreign branch correct answers operations in the home country, but may be a branch office or
whole network system in foreign country
States cannot tax _____ (imports/exports) and the fed cannot tax _____ (imports/exports) correct
answers either; exports
foreign subsidiary correct answers foreign subsidiary: company under laws of the host country,
but owned and controlled by parent company in home country
joint venture correct answers cooperative business arrangement between two or more companies
for profit, may take the form of a partnership or corporation
Case: Union carbide corp gas Plant Disaster at Bhopal correct answers poisonous chemicals
leaked from a subsidiary in India to an American corporation, court upheld that the lawsuit be
held in India by forum non conveniens
Transatlantic Financing Corp. v. United States correct answers Iran sued for the cargo ship taking
a longer than expected route, however court affirmed for the United States because they had not
previously agreed on the route (1) and because the ship had no choice once it found out about the
war time blockade (2).
Gaskin v. Stumm Handel GMBH correct answers Gaskin, a US citizen, tried to sue in a US court
claiming that he could not read the german contract when signing it stating that problems had to
be resolved in a German court, but the suit was dismissed
, Tariff correct answers import duty or tax imposed on goods entering the customs territory of a
nation
non-tarriff barriers correct answers laws or administrative regulations that have the effect of
restricting access of foreign goods or services to a domestic market
quota: correct answers direct non-tarriff barrier; restricts how many units of an import that may
enter a country; international trade laws today restrict the use of quotas except in very limited
circumstances
Bernina Distributors v. Bernina Sewing Machine Co. correct answers Importer had assumed
exchange rate risk; cost increases and currency fluctuations alone do not render a contract too
"impractable" to perform
Currency controls: correct answers prohibiting residents from making payments in foreign
currency, any foreign payments unless on gov approval or through authorized bank accounts, the
removal of foreign currency by those traveling, and the exchange of foriegn currency for local
currency at other than the official rate of exchange
DIP SpA v. Comune di Bassano del Grappa correct answers foreign law risk; Italian law required
licensing for certain practices, upheld to German company who filed suit
expropriation correct answers taking by a government of privately owned assets with some
compensation
confescation correct answers taking by a government of privately owned assets without
compensation
Countries in transition correct answers applies to countries going from centrally planned
economies (based on communist doctrine) to free market
