INTB 3355 Module 6 Exam Questions With All Correct Detailed Answers
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1. To what degree a country's legal system is based on the rule of law matters
little in international business.: False; The rule of law encourages international business and foreign
investors because relevant interests will be protected.
2. The source of international law is seldom the United Nations or the World
Trade Organization, but rather individual nation's laws.: False; Sources of international law
include the United Nations and the World Trade Organization, which help foster treaties between nations.
3. Customary international law often draws on practices that are centuries
old.: True; Customary international law is found in practices that nations respect, such as the immunity of foreign
heads of state. It derives from customs and usage over centuries.
4. The U.S. enforcement of Equal Employment Opportunity Commission (EEOC)
law in U.S. companies operating abroad is good practice, but not an example
of extraterritoriality.: False; This is not the case: Americans working for American companies abroad are
protected by U.S. EEOC regulations. This may cause problems in countries where there are social mores that are not
harmonious with those of the United States, such as men and women working together or closed hiring systems.
5. A choice-of-law clause specifies which law will govern in case of a dispute be-
tween two organizations or companies.: True; Without a choice-of-law clause (or choice-of-forum
clause), jurisdiction can be a complex matter to decide.
6. Worldwide courts rely on the power of the UN to enforce decrees.: False; Enforcing
contracts across international borders is often complicated because there is no enforcing agency.
7. The UN Convention on the International Sale of Goods (CISG) has established
legal rules and outlined the rights and obligations of the buyer and seller.: True;
If the traders are in countries that have ratified CISG, then it automatically applies unless they opt out.
8. Arbitration tends to be less private than litigation.: False; Arbitration is usually quicker, less
expensive, and more private than litigation, and it is usually binding on all parties.
9. Legal uncertainties do not constrain the growth of international business.: -
True; Despite legal uncertainties, international business is growing.
10. The Incoterms established by the International Chamber of Commerce re-
flect a harmonized body of law used to discuss environmental regulation
affecting business.: False; The 11 Incoterms were established by the International Chamber of Commerce
and are almost universally accepted. They create a common language that can be used to describe the duties and
obligations of commerce.
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Already Graded A+
Study online at https://quizlet.com/_i0o06u
1. To what degree a country's legal system is based on the rule of law matters
little in international business.: False; The rule of law encourages international business and foreign
investors because relevant interests will be protected.
2. The source of international law is seldom the United Nations or the World
Trade Organization, but rather individual nation's laws.: False; Sources of international law
include the United Nations and the World Trade Organization, which help foster treaties between nations.
3. Customary international law often draws on practices that are centuries
old.: True; Customary international law is found in practices that nations respect, such as the immunity of foreign
heads of state. It derives from customs and usage over centuries.
4. The U.S. enforcement of Equal Employment Opportunity Commission (EEOC)
law in U.S. companies operating abroad is good practice, but not an example
of extraterritoriality.: False; This is not the case: Americans working for American companies abroad are
protected by U.S. EEOC regulations. This may cause problems in countries where there are social mores that are not
harmonious with those of the United States, such as men and women working together or closed hiring systems.
5. A choice-of-law clause specifies which law will govern in case of a dispute be-
tween two organizations or companies.: True; Without a choice-of-law clause (or choice-of-forum
clause), jurisdiction can be a complex matter to decide.
6. Worldwide courts rely on the power of the UN to enforce decrees.: False; Enforcing
contracts across international borders is often complicated because there is no enforcing agency.
7. The UN Convention on the International Sale of Goods (CISG) has established
legal rules and outlined the rights and obligations of the buyer and seller.: True;
If the traders are in countries that have ratified CISG, then it automatically applies unless they opt out.
8. Arbitration tends to be less private than litigation.: False; Arbitration is usually quicker, less
expensive, and more private than litigation, and it is usually binding on all parties.
9. Legal uncertainties do not constrain the growth of international business.: -
True; Despite legal uncertainties, international business is growing.
10. The Incoterms established by the International Chamber of Commerce re-
flect a harmonized body of law used to discuss environmental regulation
affecting business.: False; The 11 Incoterms were established by the International Chamber of Commerce
and are almost universally accepted. They create a common language that can be used to describe the duties and
obligations of commerce.
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