全球营销-基坎-第六版-第五章题库-答案.doc

Global Marketing, 6e (Keegan/Green)
Chapter 5 The Political, Legal, and Regulatory Environments

1) When Barack Obama was sworn in as the president of the United States, he inherited a situation that had confounded his predecessors for half a century. America's complex relationship with Cuba illustrates the impact the political, legal, and regulatory environments can have on international trade and global marketing activities.
Answer: TRUE
Diff: 2 Page Ref: 136

2) In Europe, the individual EU countries are giving up the right to set their own product standards, and are making other sacrifices in exchange for improved market access.
Answer: TRUE
Diff: 2 Page Ref: 137-138

3) Political risk is the possibility of a change in a country's political environment or government policy that would positively affect a company's ability to operate effectively and profitably.
Answer: FALSE
Diff: 2 Page Ref: 138-139
AACSB: Reflective Thinking

4) It is estimated that 90 percent of the foreign cigarettes sold in China are smuggled in.
Answer: TRUE
Diff: 2 Page Ref: 141

5) When cars cross borders from France to Switzerland or from France to Great Britain, they contain several bottles of wine, due to high excise and VAT can also encourage legal cross-border shopping.
Answer: TRUE
Diff: 1 Page Ref: 142

6) It has been estimated that tax minimization of foreign companies doing business in the United Sates cost the government $3 billion each year.
Answer: TRUE

Diff: 2 Page Ref: 142
AACSB: Reflective Thinking

7) The various forms of asset seizure represent the ultimate threat that a government can direct toward a company.
Answer: TRUE
Diff: 2 Page Ref: 143
AACSB: Reflective Thinking

8) If a foreign company is taken over by the host country government and some form of compensation is paid, "confiscation" has occurred.
Answer: FALSE
Diff: 2 Page Ref: 143
AACSB: Reflective Thinking
9) If a foreign company is taken over by the host country government and some form of compensation is paid, "expropriation" has occurred.
Answer: TRUE
Diff: 2 Page Ref: 143
AACSB: Reflective Thinking

10) If a foreign country decides to take over banking business from private banks to benefit public and pays adequate payment then it is referred to as nationalization.
Answer: TRUE
Diff: 2 Page Ref: 143
AACSB: Reflective Thinking

11) Nationalization, expropriation, and confiscation are approved by international law as a legitimate exercise of government power as long as the act satisfies a "public purpose."
Answer: FALSE
Diff: 2 Page Ref: 144
AACSB: Reflective Thinking

12) When a foreign country expropriates an American corporation, the U.S. court can get involved in arbitration.
Answer: FALSE
Diff: 2 Page Ref: 144
AACSB: Reflective Thinking

13) A 'civil-law country' is one in which the legal system reflects the structural concepts and principles of the Roman Empire in the sixth century.
Answer: TRUE
Diff: 2 Page Ref: 146
AACSB: Reflective Thinking

14) Louisiana is the only state that has not fully adopted the Uniform Commercial Code (UCC) since its laws are heavily influenced by the French civil code.
Answer: TRUE
Diff: 3 Page Ref: 146
AACSB: Reflective Thinking

15) India, Pakistan, Malaysia, Korea, and Japan have common-law jurisdictions.
Answer: FALSE
Diff: 2 Page Ref: 147
AACSB: Reflective Thinking

16) "Sharia" and "haram" are important concepts in civil-code laws, which are commonly practiced in Middle Eastern countries.
Answer: FALSE
Diff: 2 Page Ref: 147-148
AACSB Reflective Thinking

17) The requirement that all restaurants declare that the meat is "halal" is based on Islamic Laws.
Answer: TRUE
Diff: 2 Page Ref: 147-148
18) If a foreign company only has a sign board in any state in the United States then that company is subject to the jurisdiction of U.S. courts.
Answer: TRUE
Diff: 2 Page Ref: 148
AACSB: Reflective Thinking

19) A trademark gives the inventor of a product the exclusive legal right to make, use, and sell an invention for a specific period of time.
Answer: FALSE
Diff: 2 Page Ref: 148-149
AACSB: Reflective Thinking

20) To establish ownership of a written, recorded, performed, or filmed creative work, it is necessary to apply for and be granted a patent.
Answer: FALSE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

21) Patents and trademarks that are registered in the United States are protected in all countries of the world.
Answer: FALSE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

22) A patent is a distinctive motto that a manufacturer affixes to a particular product or package to distinguish it from goods produced by other manufacturers.
Answer: FALSE
Diff: 1 Page Ref: 148-153

23) A U.S. company wishing to obtain foreign patent rights must apply to the Paris Union within one year of filing in the United States or risk a permanent loss of patent rights abroad.
Answer: TRUE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

24) The Patent Cooperation Treaty (PCT) requires companies to file separate applications in all signatory countries.
Answer: FALSE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

25) A company wishing to register a trademark in the European Union can only do so on a country-by-country basis.
Answer: FALSE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

26) Japan has recently promised to speed up patent examinations, eliminate challenges to patent submissions, and allow patent applications to be filed in English.
Answer: TRUE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking
27) Under current U.S. patent laws, patents are valid for 20 years after the application filing date.
Answer: TRUE
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

28) A recent rash of antitrust actions brought in the United States against foreign companies has raised concerns that the United States is violating international law as well as the sovereignty of other nations.
Answer: TRUE
Diff: 2 Page Ref: 155
AACSB: Analytic Skills

29) Microsoft is subject to U.S. antitrust laws no matter what country it is doing business in.
Answer: TRUE
Diff: 2 Page Ref: 154-155
AACSB: Reflective Thinking

30) Procter & Gamble instigated a review of Colgate-Palmolive's 1995 acquisition of Brazil's Kolynos oral care company under antitrust laws since Colgate will have 79 percent of the market.
Answer: TRUE
Diff: 2 Page Ref: 155
AACSB: Analytic Skills

31) KLM and Northwest airlines won an exemption from antitrust rules in the United States and now share computer codes and set prices jointly.
Answer: TRUE
Diff: 2 Page Ref: 156
AACSB: Analytic Skills

32) Formation of a cartel like OPEC, consisting of oil-producing companies, would most likely be illegal in the United States.
Answer: TRUE
Diff: 2 Page Ref: 156
AACSB: Analytic Skills

33) Trade secrets are confidential information or knowledge that has commercial value and is not in the public domain, and for which steps have been taken to keep it secret.
Answer: TRUE
Diff: 2 Page Ref: 157-158
AACSB: Reflective Thinking

34) A company hoping to protect its trade secrets from being stolen by a foreign company can seek relief under the TRIPs agreement if both companies do business in GATT signatory countries.
Answer: TRUE
Diff: 2 Page Ref: 157-158
AACSB: Reflective Thinking

35) Finland ranks highest in bribery as listed by the Corruption Perceptions Index (CPI) by Transparency International in 2006.
Answer: FALSE
Diff: 2 Page Ref: 158
36) If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the American has violated the FCPA.
Answer: FALSE
Diff: 2 Page Ref: 158-159
AACSB: Reflective Thinking

37) Bribery payments are considered a deductible business expense in many European countries.
Answer: TRUE
Diff: 2 Page Ref: 159-160
AACSB: Reflective Thinking

38) In emerging countries, journalists may themselves become targets if they criticize the rich or powerful.
Answer: TRUE
Diff: 2 Page Ref: 160
AACSB: Reflective Thinking

39) The United Nations Conference on International Trade Law (UNCITRAL) has also been a significant force in the area of arbitration.
Answer: TRUE
Diff: 2 Page Ref 161-162
AACSB: Reflective Thinking

40) The European Court of Justice, based in Luxembourg, is the European Union's highest legal authority.
Answer: TRUE
Diff: 2 Page Ref: 163-164
AACSB: Reflective Thinking

41) Any company doing business outside the home country should first carefully study the ________ in the target country.
A) political culture
B) nationalization
C) political risk
D) jurisdiction
E) sovereignty
Answer: A
Diff: 2 Page Ref: 137
AACSB: Reflective Thinking

42) Part of the functions offered by OPIC include:
A) distribution of oil to different countries of the world.
B) providing various types of political risk insurance to U.S. companies.
C) providing subsidies to large corporations.
D) collecting tax revenues to help social services.
E) collecting import duties from foreign companies.
Answer: B
Diff: 2 Page Ref: 140-141
AACSB: Reflective Thinking
43) What does value added taxes (VAT) encourage in countries such as China?
A) They make trademarks and copyrights more valuable.
B) They result in cross-border shopping and smuggling.
C) They make it harder to bribe officials.
D) They protect companies from antitrust scrutiny.
E) Global companies refrain from offering bribes.
Answer: B
Diff: 2 Page Ref: 141-142
AACSB: Reflective Thinking

44) After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies?
A) nationalization
B) confiscation
C) expropriation
D) internationalization
E) deportation
Answer: B
Diff: 2 Page Ref: 143-144
AACSB: Analytic Skills

45) Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:
A) United States.
B) European Union.
C) United Nations.
D) Netherlands.
E) United Kingdom.
Answer: C
Diff: 2 Page Ref: 145

46) What type of international disputes would be taken before the International Court of Justice?
A) disputes between two nations
B) disputes between two companies
C) disputes between a company and a nation
D) disputes between a citizen of one country and a company from a different country
E) disputes between profit and non-profit organizations
Answer: A
Diff: 2 Page Ref: 145-146
AACSB: Reflective Thinking

47) Which of the following is not an institution for arbitrating trade disputes?
A) American Arbitration Association
B) UN Conference on International Trade Law
C) International Chamber of Commerce
D) European Court of Justice
E) International Court of Justice
Answer: E
Diff: 2 Page Ref: 145-146
AACSB: Reflective Thinking
48) The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except:
A) Virginia.
B) North Dakota.
C) Wisconsin.
D) Louisiana.
E) Montana.
Answer: D

Diff: 2 Page Ref: 146

49) Which of the following is not a common-law country?
A) India
B) Pakistan
C) Malaysia
D) Korea
E) Singapore
Answer: D
Diff: 1 Page Ref: 146

50) 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?
A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries
B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries.
C) In West Africa, Ivory Coast and Senegal are the only common-law countries
D) All the West African nations mentioned above are likely to be civil-code countries.
E) All the West African nations mentioned above are likely to be common-law countries
Answer: A
Diff: 3 Page Ref: 146-147
AACSB: Reflective Thinking

51) Islamic law is a comprehensive code based in part on:
A) Anglo-Saxon common law.
B) Roman law and the Napoleonic Code.
C) the Uniform Commercial Code.
D) the Koran.
E) the French civil Code.
Answer: D
Diff: 2 Page Ref: 147

52) Any Western country doing business in Malaysia or the Middle East should have understanding of:
A) the French civil Code.
B) Anglo-Saxon common law.
C) Islamic law.
D) the Uniform Commercial Code.
E) Roman law and the Napoleonic Code.
Answer: C
Diff: 2 Page Ref: 147
AACSB: Reflective Thinking
53) 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:
A) jurisdiction.
B) antitrust.
C) dilution of equity.
D) bribery and corruption.
E) intellectual property.
Answer: A
Diff: 2 Page Ref: 148
AACSB: Reflective Thinking

54) 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:
A) use of alcohol in public places.
B) purchase of wine from country of origin.
C) misuse of 16 place names by marketers of wine products that do not originate in those places.
D) misuse of labels which does not include the origin of ingredients.
E) use of word "champagne" on wine made in the United States.
Answer: C
Diff: 3 Page Ref: 149

55) 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?
A) patent
B) copyright
C) trademark
D) trade secrets
E) technological
Answer: A
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking

56) In many developing countries, manufacturers "knock off" clothing by Calvin Klein, Tommy Hilfiger, and other designers. The unauthorized goods bear the designer's name, but are often of inferior quality and sell for lower prices than the real thing. What form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) trade dress
Answer: C
Diff: 2 Page Ref: 148-153
AACSB: Reflective Thinking
57) In