International Business Law Test Questions with Verified Answers 100% Pass
trade in services - Answers refers to the providing of services to a customer or the operation of service
companies in a foreign country
Examples: transportation, package delivery, banking, etc.
direct exporting - Answers a type of exporting in which the exporter, often a manufacturer, assumes
responsibility for most of the export functions
Example: when companies hire a full-time export manager who makes export marketing decisions,
including product development, pricing, packaging, and labeling and deal directly with foreign buyers,
trade shows, etc.
indirect exporting - Answers a type of exporting that occurs when companies do not have the
experience, personnel, or capital to tackle a foreign market alone and so instead use intermediaries
foreign sales representatives - Answers independent sales agents who solicit orders on behalf of their
principals and receive compensation on a commission basis; they know foreign markets, establish
customer loyalty, carry a range of complimentary products
Example: an agent that represents several manufacturers of US sporting goods in Japan
foreign distributers - Answers independent firms, usually located in the country or region to which a firm
is exporting, that purchase and take delivery of goods for resale to their customers; they assume the risk
of bear responsibility, etc. for all things they're working on
export training companies - Answers can apply and receive certificates from the US Department of
Justice that can waive the application of US antitrust laws to their export activities
Example: it is illegal for two competing firms that manufacture similar products to agree to fix prices in
the US market
certificate of origin - Answers one of the most important legal documents used in import/export
Example:
export management companies - Answers independent firms that assume a range of export-related
responsibilities for manufacturers or other exporters; they do everything from render advice/training on
how to export or assume full responsibility
Example: a company who does foreign market research, establishing foreign channels, and handing
shipping arrangements for a firm
export plan - Answers an assessment of a firms readiness for export markets and its willingness to
commit financial resources, human resources, and production output to foreign customers (p. 6)
, intellectual property (IP) - Answers the legal rights which result form intellectual activity in the
industrial, scientific, literary, and artistic fields
Examples: patents, trademarks, copyrights, etc.
licensing agreements - Answers contracts which the holder of intellectual property will grant certain
rights in that property to another party under certain conditions and for a certain time; can either be
exclusive or non exclusive, and frequently limit distribution to a certain geographical area or a certain
period of time
Example: Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc.
infringement - Answers refers to the violation of the IP rights of another, and often occurs in the
unauthorized use, distribution, or appropriation of those rights
Example: piracy or counterfeiting
World Intellectual Property Organization (WIPO) - Answers a specialized agency in the UN that fosters
government cooperation in developing IP policies and coordinates registrations in some IP areas;
arbitrates to resolve IP disputes between parties
Example: solves a dispute over patent, trademarks, etc. between corporations
franchising - Answers a business arrangement that uses an agreement to license, control, and protect
the use of the franchisors patents, trademarks, etc.
Example: the most common form of franchising is known as business operations franchise and is usually
used in retailing
World Trade Organization (WTO) - Answers helps member countries assure a more uniform application
and enforcement of their national IP laws
Example: when there are IP disputes between governments and the forum must resolve them
transfer of technology - Answers the sharing of scientific information, technology, and manufacturing
know-how between firms, universities, and other institutions
Example: the building of business alliances between groups who share patent information
foreign direct investment (FDI) - Answers the ownership and operation or effective control of the
productive assets of an ongoing business by an individual or corporate investor who is a resident or
national of another country
home country - Answers the country under whose laws the investing corporation was created or is
headquartered
Example: the US is home to multinational corporations such as Ford, Exxon, and Coca-Cola
trade in services - Answers refers to the providing of services to a customer or the operation of service
companies in a foreign country
Examples: transportation, package delivery, banking, etc.
direct exporting - Answers a type of exporting in which the exporter, often a manufacturer, assumes
responsibility for most of the export functions
Example: when companies hire a full-time export manager who makes export marketing decisions,
including product development, pricing, packaging, and labeling and deal directly with foreign buyers,
trade shows, etc.
indirect exporting - Answers a type of exporting that occurs when companies do not have the
experience, personnel, or capital to tackle a foreign market alone and so instead use intermediaries
foreign sales representatives - Answers independent sales agents who solicit orders on behalf of their
principals and receive compensation on a commission basis; they know foreign markets, establish
customer loyalty, carry a range of complimentary products
Example: an agent that represents several manufacturers of US sporting goods in Japan
foreign distributers - Answers independent firms, usually located in the country or region to which a firm
is exporting, that purchase and take delivery of goods for resale to their customers; they assume the risk
of bear responsibility, etc. for all things they're working on
export training companies - Answers can apply and receive certificates from the US Department of
Justice that can waive the application of US antitrust laws to their export activities
Example: it is illegal for two competing firms that manufacture similar products to agree to fix prices in
the US market
certificate of origin - Answers one of the most important legal documents used in import/export
Example:
export management companies - Answers independent firms that assume a range of export-related
responsibilities for manufacturers or other exporters; they do everything from render advice/training on
how to export or assume full responsibility
Example: a company who does foreign market research, establishing foreign channels, and handing
shipping arrangements for a firm
export plan - Answers an assessment of a firms readiness for export markets and its willingness to
commit financial resources, human resources, and production output to foreign customers (p. 6)
, intellectual property (IP) - Answers the legal rights which result form intellectual activity in the
industrial, scientific, literary, and artistic fields
Examples: patents, trademarks, copyrights, etc.
licensing agreements - Answers contracts which the holder of intellectual property will grant certain
rights in that property to another party under certain conditions and for a certain time; can either be
exclusive or non exclusive, and frequently limit distribution to a certain geographical area or a certain
period of time
Example: Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc.
infringement - Answers refers to the violation of the IP rights of another, and often occurs in the
unauthorized use, distribution, or appropriation of those rights
Example: piracy or counterfeiting
World Intellectual Property Organization (WIPO) - Answers a specialized agency in the UN that fosters
government cooperation in developing IP policies and coordinates registrations in some IP areas;
arbitrates to resolve IP disputes between parties
Example: solves a dispute over patent, trademarks, etc. between corporations
franchising - Answers a business arrangement that uses an agreement to license, control, and protect
the use of the franchisors patents, trademarks, etc.
Example: the most common form of franchising is known as business operations franchise and is usually
used in retailing
World Trade Organization (WTO) - Answers helps member countries assure a more uniform application
and enforcement of their national IP laws
Example: when there are IP disputes between governments and the forum must resolve them
transfer of technology - Answers the sharing of scientific information, technology, and manufacturing
know-how between firms, universities, and other institutions
Example: the building of business alliances between groups who share patent information
foreign direct investment (FDI) - Answers the ownership and operation or effective control of the
productive assets of an ongoing business by an individual or corporate investor who is a resident or
national of another country
home country - Answers the country under whose laws the investing corporation was created or is
headquartered
Example: the US is home to multinational corporations such as Ford, Exxon, and Coca-Cola
