International Marketing Chapter 5

1

Any company doing business outside the home country should first carefully study the ________ in the target country.

Sovereignty
Political risk
Nationalization
Jurisdiction
Political culture

2

Categories of political risk listed by EIU (The Economist Intelligence Unit) includes all of the following except:

Political turmoil.
Bureaucracy.
Corruption.
War.
Crime.

3

What do value added taxes (VAT) encourage in countries such as China?

They make it harder to bribe officials.
Global companies refrain from offering bribes.
They result in cross-border shopping and smuggling.
They protect companies from antitrust scrutiny.
They make trademarks and copyrights more valuable.

4

Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:

Netherlands.
European Union.
United Nations.
United States.
United Kingdom.

5

What type of international disputes would be taken before the International Court of Justice?

Disputes between two companies
Disputes between profit and non-profit organizations
Disputes between a company and a nation
Disputes between two nations
Disputes between a citizen of one country and a company from a different country

6

What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice?

European Court of Justice can be approached if the country is in the European Union.
International Chamber of Commerce will be another source for seeking justice.
American Arbitration Association can be sought for justice.
UN Conference on International Trade Law can be approached.
The plaintiff nation can seek recourse through the UN Security Council.

7

The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except:

Wisconsin.
North Dakota.
Louisiana.
Montana.
Virginia.

8

Which of the following is not a common-law country?

Singapore
Korea
Pakistan
Malaysia
India

9

In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct?

In West Africa, Ivory Coast and Senegal are the only common-law countries
All the West African nations mentioned above are likely to be civil-code countries.
Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries.
All the West African nations mentioned above are likely to be common-law countries
Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries

10

Islamic law is a comprehensive code based in part on:

Roman law and the Napoleonic Code.
The Koran.
Anglo-Saxon common law.
The French Civil Code.
The Uniform Commercial Code.

11

Any Western country doing business in Malaysia or the Middle East should have understanding of:

The French Civil Code.
Anglo-Saxon common law.
The Uniform Commercial Code.
Islamic law.
Roman law and the Napoleonic Code.

12

In a recent case, Revlon sued United Overseas Limited (UOL) in U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOL's claim. This is an issue related with:

Dilution of equity.
Bribery and corruption.
Intellectual property.
Jurisdiction.
Antitrust.

13

Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated?

Technological
Trademark
Trade secrets
Copyright
Patent

14

Counterfeiting is:

The use of a formal legal document for illegal purposes.
The ownership of a written, recorded, performed or filmed creative work.
The unauthorized copying or production of a product.
The use of a distinctive mark of a brand that is no longer producing the original brand.
The use of a product name that has different meaning than the original brand.

15

In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated?

Copyright
Down loading
Trade secrets
Trademark
Patent

16

Which of the following would constitute a copyright violation?

Printing and selling illegal copies of Harry Potter books
Manufacturing and selling illegal copies of Levi "501" jeans
Manufacturing and selling illegal videocassette copies of "Spiderman 2"
A and B are copyright violations
A, B, and C are copyright violations

17

In 2005, representatives from several wine regions in the United States and the EU signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord signed by the United States and EU bans the:

Misuse of 16 place names by marketers of wine products that do not originate in those places.
Purchase of wine from country of origin.
Use of word "champagne" on wine made in the United States.
Misuse of labels which does not include the origin of ingredients.
Use of alcohol in public places.

18

Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by it's motorcycles. What type of protection is Harley-Davidson seeking?

Trade dress
Trademark
License
Patent
Copyright

19

Only Sony can use the "Walkman" name on it's line of personal stereos. This is because:

Sony has an international business license.
Sony has copyrighted the Walkman name.
Sony has a patent on the Walkman.
Sony's trade secrets are protected by international law.
"Walkman" is a registered Sony trademark.

20

In order to fight piracy in China, Budweiser Beer's approach includes:

Making beer very cheap in price in China.
Beer cans in China have fluted edges.
Changing color of beer cans.
Printing labels both in Chinese and English.
Printing labels in Chinese.

21

Which of the following statements is correct?

The Berne Convention and Paris Convention are different names for the same thing.
The International Union for the Protection of Literary and Artistic Property is different from the Berne Convention.
Neither the Berne Convention nor the Paris Convention is concerned with intellectual property.
The Paris Convention protects patents, the Berne Convention protects copyrights.
The Paris Convention protects copyrights, the Berne Convention protects patents.

22

Which of the following is true about protection of computer software?

Patent laws protect the actual code, while copyright laws protect the idea.
License protects both the actual code and the idea embodied in the code.
Copyright laws protect both the actual code and the idea embodied in the code.
Copyright laws protect the actual code, while patent laws protect the idea.
Patent laws protect both the actual code and the idea embodied in the code.

23

The company receiving the most U.S. patents for the year 2009 is:

Toshiba.
Intel.
IBM.
Panasonic.
Microsoft.

24

Which of the following is true about revised U.S. patent laws?

Patents are valid as long as the product is manufactured.
Patents are valid for 17 years after the patent is granted.
Patents are valid for 17 years after the patent is filed.
Patents are valid for 20 years after the patent is granted.
Patents are valid for 20 years after the filing date of the application.

25

Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France. One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier. Which of the following does not represent an action taken by different legal bodies?

The European Commission ruled against Consten on the grounds that territorial protection proved to be damaging to the Common Market.
Consten's complaint was upheld by two French courts.
The European Commission ruled that German Grundig was in violation of the laws of the Common Market.
The Paris Court of Appeals suspended the judgment of the French courts.
The Paris Court of Appeal's judgment was based on pending a ruling by the European Commission.

26

OPEC can be considered as a cartel which is a group of separate companies that collectively:

Conducts activities that are considered illegal in United States.
Sets prices, controls output, or takes other actions to maximize profits.
Dictates how other countries should use their products.
Produces more products in order to beat the competition.
Works on forming a union against management of other companies.

27

Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States?

Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.
Trade secrets, patents, and copyrights are protected by state law.
Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law.
Trade secrets, patents, and copyrights are not protected by any laws.
Trade secrets, patents, and copyrights are protected by federal statutes.

28

The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to:

Bayer's attempts to circumvent FDA policies.
The exclusive nature of the license agreement.
The hostile arrangement between Bayer and Johnson.
The amount of royalties Johnson agreed to pay.
The duration of the license.

29

According to the Transparency International's Corruption Perceptions Index scores for 2010, the country which was listed as most corrupt was:

Iraq.
Afghanistan.
Uzbekistan.
Chad.
Somalia.

30

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act) antibribery provisions except:

Corporations are subject to a fine of up to $2,000,000.
The fines may be much higher, up to twice the benefit sought by the defendant.
In addition to fines, there may be imprisonment for up to five years.
Officers, directors, stockholders, employees, and agents are subject to a fine up to $100,000.
Fines imposed on individuals can be paid by their employer or principal.

31

When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be:

To ignore bribery and act as if it does not exist.
To abandon any attempt to maintain company ethics.
To adapt in varying degrees to local customs and practices.
To have a product that is clearly superior to that of the competition.
To maintain home-country ethics worldwide with no adaptations.

32

The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth. This is a reflection of:

The low-context nature of the American culture.
The fact that conflicts arise more in the United States.
The lack of class action lawsuits.
The lack of spirit of confrontational competitiveness.
The fact that lawyers cannot undertake cases on contingency fee basis.