International Business Law and Its Environment, Schaffer - Complete test bank - exam questions - quizzes (updated 2022)

True / False
1. Global sourcing is the term commonly used to describe the process by which a firm attempts to locate and purchase
goods or services on a worldwide basis.

a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
OTHER: Bloom's: Knowledge


2. Customs brokers are government 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

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
United States - Standard ID - BUSPROG
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Obtaining Professional Assistance
KEYWORDS: Bloom's:Knowledge

3. Non tariff barriers such as technical standards do not have a significant influence on how firms make their trade and
investment decisions.

a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's:Analysis

,4. Small and medium-size companies lack the competitive advantage to compete with large multinational corporations
and therefore have little to contribute to the international marketplace.
a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's:Evaluation

5. 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

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Evaluation

6. Trade consists of the import and export of goods or services.

a. True
b. False

ANSWER: True

POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Knowledge

7. Exporting is the shipment of goods or rendering of services to a foreign buyer located in a foreign country.

a. True
b. False

ANSWER: True

POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Application

, 8. The three forms of international business are exporting, importing, and licensing.
a. True
b. False

ANSWER: False

POINTS: 1
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Application

9. Indirect exporters commonly employ the services of export trading companies and export management companies.

a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Comprehension

10. Indirect exporting but not direct exporting involves sales through sales agents or to foreign distributors.

a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Synthesis

11. International licensing agreements are contracts by which the holder of intellectual property grants certain rights in
that property to a foreign firm for a specified period of time.

a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Comprehension

, 12. A potential negative aspect of the transfer of technology is that the licensee could be your competitor in the future.
a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's:Synthesis

13. A host country refers to the country under whose laws the investing corporation was created or is headquartered.

a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Analysis

14. A home country refers to the country under whose laws the investing corporation was created or is incorporated.

a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Easy
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law
KEYWORDS: Bloom's: Analysis

15. Currency exchange risk cannot be managed because the fluctuations of currencies cannot be predicted.

a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Moderate
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - AICPA - AICPA - BB-Legal
TOPICS: Introduction to International Business Law