International Business Law A Transactional Approach 2nd Edition By Larry A. – Test Bank

CHAPTER ONE

RISKS OF INTERNATIONAL BUSINESS TRANSACTIONS

TRUE/FALSE

1. Globalization in trade is likely to be accelerated through increased regionalization. 

ANS: True

2. Direct foreign investment measures the degree of trade in goods between two nations. 

ANS: False

3. Private individuals may use the International Court of Justice to settle commercial disputes.  

ANS: False

4. Under U.S. law, treaties are not binding on state and local governments.  

ANS: False

5. Lex Mercotoria refers to the process by which day-to-day practices become codified into international customary law. 

ANS: True

6. International harmonization in the area of contract law will have the effect of increasing costs in international contract formation.  

ANS: False

7. The United Nations Convention on Contracts for the International Sale of Goods (CISG) requires a written document as proof that a contract has been formed.  

ANS: False

8. An Export Trading Company (ETC) is a type of Export Management Company (EMC) that takes title to a product.  

ANS: True