International Business Law Test #2

1. The principle of states that least restrictive trade WTO member countries, in setting otherwise valid restrictions on trade, shall make them no more onerous than necessary to achieve the goals for which they were imposed. 2. A corollary to least restrictive trade is that national laws and regulations passed for purely internal purposes, such as the protection of the gener- al HS&W must also pose the fewest barriers to trade as pos- sible. 3. The WTO has stated that this is the balancing test: nations must weigh the against 4. A is a law affecting a product's characteristics-such as its performance, design, construc- tion, chemical composition, materi- als, packaging or labeling-that must be met before a product can be im- ported or sold in a country. 5. Technical regulations and standards that apply to imported foreign prod- ucts, even if they also apply equal- ly to domestic products, are called . 6. Most countries require some type of testing, inspection or certification of regulated products. There are two major regulatory approaches: health, safety, and welfare necessity of protecting the public, re- strictions on free trade technical regulation technical barriers to trade 1. Prior approval 2. Prior certification 7. Transparency refers to the abili- ty of the public, particularly foreign firms, to have open access to gov- ernment rules or private standards that are published and made readily available to foreign firms. 8. The EU has attempted to in- crease its standardization through the . 9. Product standards in Japan have historically taken the form of standards. U.S. stan- dards, by contrast are usually based on standards. 10. The maintains an online "standards portal" that gives firms access to English trans- lations of standards and technical regulations in China, India and Ko- rea, as well as various U.S. stan- dards in English, Mandarin, Chinese and Korean. 11. The Agreement prohibits countries form using their regulations or standards to discrim- inate against the import of foreign goods. 12. The WTO Agreement on Technical Barriers to Trade Agreement pro- hibits countries form using their reg- ulations or standards to discrimi- nate against the import of foreign goods. The agreement has three methods of achieving its goals: CE Mark design, performance American National Standards Insti- tute (ANSI) WTO Agreement on Technical Barri- ers to Trade 1. Harmonization 2. Equivalence 3. Mutual recognition 13. The based in Geneva, is a non-governmental organization comprising the national standards institutes of 163 countries. 14. The WTO requires fair, open and nondiscriminatory procurement practices and sets up uniform procurement procedures to protect suppliers from different countries. 15. The WTO Agreement on Govern- ment Procurement (AGP) requires fair, open and nondiscriminatory procurement practices and sets up uniform procurement procedures to protect suppliers from different countries. It prohibits a procuring agency from awarding a contract to a foreign firm based on certain con- ditions, called 16. includes areas such as law, accounting, travel, insurance, and data processing. 17. The WTO establishes rules for international trade in ser- vices. 18. In the U.S. federal legislation called the , is enacted every five years to establish U.S. agricultur- al and food policies, programs and funding for that period. 19. The WTO Agreement on Agriculture began the process of removing gov- ernment intervention in the farming International Organization for Stan- dardization (ISO) Agreement on Government Procure- ment (AGP) procurement offsets Trade in services General Agreement on Trade in Ser- vices (GATS) Farm Bill 1. Cutting domestic subsidies and other direct payments to farmers 2. Cutting programs that subsidize ex- sector and ending government pro- grams that distort normal market conditions. The agreement has three main objectives: 20. A is a government rule or regulation that protects or en- hances food, animal or plant safety or quality including preventing the spread of pathogens and disease. 21. Internationally accepted standards or recommendations for the protec- tion of plants, animals and food- stuffs are found in the 22. One of the most important weapons in the U.S. arsenal against for- eign trade barriers and unfair trade practices is common known to businesspeople and lawyers as ports of farm products 3. Assuring greater access for import- ed farm products by converting quo- tas and other non tariff barriers into tariffs Sanitary and phytosanitary measure Codex Alimentarius Section 301 (of the U.S. Trade Act of 1974). 23. One of the most important weapons in the U.S. arsenal against foreign trade barriers and unfair trade prac- tices is common known to busi- nesspeople and lawyers as Section 301 (of the U.S. Trade Act of 1974). An offending country may be des- ignated either as a (the worst offenders) or be placed on the priority foreign country, watch list 24. According to the text, after 2001, three forces quickly reshaped U.S. export control policy: 1. The "War on terror" 2. Renewed concerns and tensions over nuclear proliferation (especially N. Korea and Iran) 3. China has become a global eco- 25. The were original- ly promulgated under the authori- ty of the Export Administration Act of 1979 by the Bureau of Industry and Security (BIS) of the U.S. De- partment of Commerce. In 2001, the act expired and was not renewed by Congress, however, it remains effec- tive due to executive orders of the president. 26. Items controlled by the EAR include what four categories? 27. Controlled items include , intended primarily for civilian use; and items, which may also have a military or "proliferation" use. 28. The EAR defines as the specific information and know-how necessary for the development, pro- duction or use of a product, includ- ing the results of proprietary re- search done by corporations, uni- versities or research labs. nomic powerhouse and major pur- chaser of U.S. commercial technology Export Administrative Regulations (EAR) 1. All U.S.-origin goods and technolo- gy, wherever located 2. Certain foreign-made items con- taining usually more than 25% U.S.-origin controlled content/tech- nology 3. Certain items made in a foreign country with U.S. technology 4. Items made at a plant located out- side the U.S. if that plant was de- signed and built with U.S. technology commercial items, dual-use control technology 29. According to the test, under the EAR, there are three broad reasons for controlling exports: 30. means that controls may not be placed on the export of goods that are "available without re- striction from sources outside the United States in sufficient quantities and comparable in quality to those produced in the United States so as to render the controls ineffective in achieving their purposes." 31. The term means the act of shipping controlled items out of the U.S. or the transfer of controlled items or technology to a foreign na- tional where they are located inside or outside the U.S., including tech- nology. 32. The term refers to the shipment or transfer of Ameri- can-controlled items or technology from one foreign country to another foreign country. 33. A is the unlawful trans- fer, transshipment, rerouting or re-exporting of controlled goods or technology from one destination, to which the goods or technology could be shipped, to another des- tination that has not been lawfully authorized to receive the items. 1. To protect national security 2. To promote U.S. foreign-policy 3. To prevent the short supply of es- sential domestic materials Foreign availability export re-export diversion 34. A is the communication deemed export or other transfer by an American cit- izen of technology, technical data, software and source code, encryp- tion technology or other controlled information to a foreign national. 35. A is an individual who is neither a U.S. citizen nor a per- manent legal resident of the United States. 36. Export controls are based on the ar- ticle, technology, country of desti- nation and the individual person or entity receiving it-known as the end user. It is unlawful to release any controlled substance to anyone on the following lists: 37. There is a convenient , an online compilation of prohibited users 38. laws are legal re- sponses by governments that make it unlawful for their citizens or com- panies to participate in a boycott. 39. An economic or is a regulation that restricts or prohibits relationships with "targeted" for- eign countries, foreign entities, or named foreign individuals because of their support for internationalism terrorism, proliferation of weapons of mass destruction, international drug and narcotics trafficking or oth- er threats to national security. foreign national 1. Entity list (e.g. China, Russia, Pak- istan, India) 2. Specially designated nationals/ blocked persons list (terrorism, drugs) 3. Unverified List (firms with "red flag") 4. Denied Persons List (denied or re- voked) 5. Debarred List (barred from export- ing defense articles) consolidated screening list Antiboycott financial sanction 40. Congress has passed a number of statutes giving the U.S. authority to issue sanctions. The two most im- portant are: 41. One of the major U.S. responses to the terrorists acts of September 11, 2001, was the enactment of the 1. Trading with the Enemy Act 2. International Emergency Economic Powers Act USA Patriot Act 42. As an American citizen, you have a constitutional right to international travel in the absence of your government's approval. 43. The North American Free Trade do not 1. Canada Agreement (NAFTA) is an agreement 2. Mexico among what three countries? 44. Under the Constitution's the states gave the federal Congress the exclusive power to manage trade among the states and with the for- eign nations 45. Article of the U.S. consti- tution gives treaty-making power to the president, with Senate consent. 46. A develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries 47. In a , there is free trade in all goods that come through any of the members, even imports form outside those member countries 3. United States Commerce Clause II free trade area customs union 48. A seeks to further facili- tate free competition within a group of nations by protecting the right of all enterprises and persons within the area to do business, invest capi- tal, and sell their services anywhere within the area without discrimina- tion on the basis of national origin 49. is the United State's largest trading partner 50. The purpose of the is to encourage trade with developing countries to aid in their economic growth. 51. According to your text, NAFTA does more than just eliminate duties be- tween member countries. List three specific things from your text that NAFTA does: common market Canada Generalized System of Preferences 1. Eliminate duties between Canada, Mexico and the U.S. 2. Liberalizes trade in goods and ser- vices 3. Protects intellectual rights 52. NAFTA'S principle states national treatment that once goods arrive from another NAFTA country, they must be treat- ed without discrimination and no differently than domestically made goods. 53. Under NAFTA, a foreign product can/cannot? be channeled through one North American country for sale in another North American country and avoid payment of duties. 54. are a critical issue to importers and exporters. They offer the sole way to determine the rate of cannot Rules of origin duty or even quotas that might apply to the product being bought or sold. 55. The most important general rules of NAFTA are: 56. NAFTA applies to goods wholly pro- duced or obtained in 57. The is used to deter- mine the country of origin of good imported into the U.S. when the goods are produced or assembled in more than one country. 58. The Annex 401 rules of origin may be based on a change in tariff clas- sification, a regional value-content requirement, or both depending on the requirements for that particu- lar product. This is known as the 1. Goods must be wholly produced or obtained in Canada, Mexico or the U.S. 2. Goods may contain non-originating inputs (components or raw materials) but must meet the regional value con- tent requirements North America substantial transformation test tariff shift rule. 59. A NAFTA is required for Certificate of Origin all shipments moving among the member states. They are required for all commercial shipments entering the U.S. where the total line item val- ue for a good (not the shipment val- ue) is more than $2500. 60. In the "Skippy" peanut butter case, discussed in the section on mar- keting and labeling rules, the court held that under Annex 311 to NAFTA, could not the company could/could not? put "Made in the U.S.A." on its label. 61. According to the text, NAFTA per- mits certain action to safeguard a domestic industry. The emergency safeguards under NAFTA are (more or less)? limited than safeguards un- der GATT/WTO. 62. Many professional organizations from NAFTA countries are negotiat- ing . Once ratified by state and federal governments, they will permit recognition of professional li- censes in member countries. 63. The NAFTA supervis- es the implementation of the agree- ment and attempts to resolve dis- putes that may arise regarding its interpretation or application. 64. An under NAFTA con- sists of five members who are ex- perts in trade or law. 65. Appeals from administrative orders in NAFTA cases now go to NAFTA , not to courts of law. 66. Appeals from administrative orders in NAFTA cases now go to NAFTA bi- national panels, not to courts of law. Appeals of these decisions may be taken only to a NAFTA , not to courts of law. 67. The now known as the European Union (EU) had 28 more mutual recognition agreements Fair Trade Commission arbitral panel binational panels Extraordinary Challenge Committee European Economic Community member states as of August, 2013 and is the largest single market in the world. 68. Although the EU is a single unit, it started out as three "communities" each created and operating under a separate treaty. Those three treaties are: 69. The state the original ob- jectives of the EU and launched the process of establishing a customs union. 70. The process of becoming a mem- ber of the EU is a long and complex process. Any European state may apply for membership if it respects . 71. A state wishing to join the EU must first reach a agree- ment with the EU whereby the po- tential candidate state is offered free trade incentives in return for com- mitments to political and economic reform. 72. granting new member- ship (into the EU) must be ratified by all existing members. 73. The is composed of the heads of state or government of the EU's member states long with the president of the European Commis- sion. It has jurisdiction over a wide range of areas, including the com- 1. European Coal and Steel Commu- nity 2. European Atomic Energy Commu- nity 3. Commission of the European Com- munity Treaty of Rome democratic value stabilization and association Accession treaties European Council position of Parliament and Commis- sion and law enforcement and con- stitutional matters. 74. The sits in Brus- sels, Belgium and is the effective "capital" of the EU. Council of Ministers of the European Union 75. The serves as the EU's European Commission executive body carrying out the de- cisions of the Council of Ministers. It is also the only body that can make legislative proposals for the Coun- cil of Ministers and European Parlia- ment to consider. 76. The is the only EU in- stitution whose members are elect- ed by European citizens 77. The European Parliament is the only EU institution whose members are elected by European citizens. Each member state elects a different num- ber, based on population. Those are elected are called European Parliament Members of the European Parliament (MEPs) 78. The Parliament comprises members 1. Socialists of various political factions, includ- ing the: 79. The in Luxembourg functions as the final arbiter of the EU law. 80. The has original juris- diction in cases brought by the EU institutions to compel member states to comply with their treaty 2. Christian Democrats 3. European Democrat Alliance 4. Greens European Court of Justice of the Eu- ropean Union (ECJ) General Court obligations or by member states against EU institutions alleged to have overstepped their powers un- der the treaties. 81. The EU courts follow the civil law tradition because all but the British and Irish judges come from this tra- dition 82. The ECJ may be asked by a national court to issue a preliminary ruling on a point of EU. This is called an and is largely absent in the U.S. judicial system. 83. Decisions by the ECJ are issued without any 84. National courts are/are not? obligat- ed to follow EU law and the ECJ's decisions. 85. One of the principal goals of the EU is to national laws and create a common legal environment for business. 86. There are two concepts of primary importance in any discussion of EU law. The two doctrines are: 87. The German beer purity law was struck down as an artificial and un- warranted barrier to trade. T/F? 88. The refer to a body of EU law originating with the Treaty of Rome in which the EU committed it- advisory opinion dissenting opinion are harmonize 1. Direct effects 2. Supremacy doctrine True Four Freedoms 1. Goods 2. Services self to achieving the free movement of: 89. Services presently account for percent of all economic activity and employment in the EU. 3. Capital 4. People 70