1. Which entity emerged from the General Agreement on Tariffs and Trade, was formally established in 1995 to serve as the primary global international organization dealing with the rules of trade between nations, ensures that trade flows smoothly, predictably and freely, and has its headquarters in Geneva, Switzerland?

a. GATT

b. WTO

c. WTCA

d. ICC

2. In which legal system does the following apply: law is based on case laws that are determined through the judicial system; and, the method of setting law based on the reliance of previous judicial decisions is known as the doctrine of precedent?

a. Civil Law

b. Common Law

c. Shari'ah Law

d. Token Law

3. Which agreement does the following refer to: was reached in the Netherlands in 1995 to implement export controls that control categories of goods and technologies that may constitute some form of weapon; was established to contribute to regional and international security and stability by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies; and, the countries involved agreed to ensure that transfers of these items do not contribute to the development or enhancement of military capabilities that undermine goals of international safety and security?

a. Hague/Visby Rules

b. The Wassenaar Arrangement

c. The Vienna Treaty

d. The Paris Convention

4. Countries generally have tariffs (taxes on imports and exports); and will list the different schedules of duty applicable on all imports into the country, as well as any goods that are duty-free. Generally, tariffs are applied "ad valorem"; what does this mean?

a. Based on the value of the goods

b. By adding the tariff to the duty

c. Only on value-added goods

d. By adding value

5. Which of the following is the method for customs valuation used under the WTO?

a. Transaction value method

b. Shipped goods method

c. Tariff value method

d. Value for goods method

6. Which of the following categories of duty are applied to most WTO countries that have normal trade relations with the importing country?

a. Most Favoured Nation (MFN)

b. Generalized System of Preferences (GSP)

c. Normal Nation Duty (NND)

d. WTO Partner Duty

7. Which of the following categories of duty provides duty-free treatment to goods originating from many developing countries?

a. Most Favoured Nation (MFN)

b. Generalized System of Preferences (GSP)

c. Developing Nation Duty (DND)

d. Favored Status Duty (FSD)

8. Which of the following terms refers to when a firm invests directly in facilities to produce and/or market a product in a foreign country?

a. Direct Foreign Investment (DFI)

b. Foreign Direct Investment (FDI)

c. Foreign Facility Investment (FFI)

d. Offshore Facility Investment (OFI)

9. Many countries maintain quotas and other regulations that discriminate against foreign products to protect their domestic manufacturers. What are these restrictions called?

a. Anti-competitive regulations

b. Restrictive foreign rules

c. Non-tariff barriers

d. Protective domestic actions

10.In international trade, dumping occurs when foreign competitors "dump" their products into a market below normal value or cost to gain market share and local competitors in that market suffer material injury with substantial losses as a result. If it is determined that dumping has occurred, WTO countries will generally initiate which of the following anti-dumping measures?

a. Anti-dumping VAT

b. Countervailing Duties

c. Retaliatory Excise Tax

d. Normative tariffs

11.Farantz Lighting LLC is an active exporter to Libya, but recently the company's marketing director read in the news that an embargo was being put in place against Libya. What does this mean for Farantz?

a. This may not impact the company since an embargo is usually a narrowly defined set of prohibitions put in place by multilateral organizations like the UN and the EU (i.e. it generally only affects a narrow range of shipments)

b. This will most likely impact the company because an embargo is traditionally a complete (government-imposed) ban on commercial activity between nations

c. This will definitely not impact the company because embargoes only apply to government-to-government business and transactions d. This will definitely not impact the company because embargoes only ever apply to strategic resources like oil, gas, certain minerals, etc.

12.The Red Bird Bus Company is a manufacturer of school buses and emergency vehicles located in Miami, Florida, U.S. The company recently received a significant purchase order for 10 vehicles to be delivered to Syria, with very favorable cash in advance payment terms. Which of the following lists should the company check before taking any actions?

a. The International Chamber of Commerce reference database

b. The U.S. Department of Treasury OFAC sanctions list

c. The WTO listing of banned trading partners

d. The WTCA Blocked Parties List

13.The elements of a binding contract are often referred to as the Four Corners of a contract. Which of the following is a description of these four components?

a. (1) Offer; (2) Acceptance; (3) Signed document; (4) Legal intention

b. (1) Offer; (2) Acceptance; (3) Consideration; (4) Legal intention

c. (1) Offer; (2) Signed document; (3) Promised payment; (4) Legal intention

d. (1) Offer; (2) Acceptance; (3) Signed document; (4) Promised payment

14.Which of the following international agreement establishes a set of rules governing certain aspects of everyday commercial contracts between sellers and buyers who have their places of business in different countries, and, by adopting it, a nation commits that it will treat the rules as part of its law?

a. The WTO Goods agreement

b. The Bretton Woods Agreement

c. The UN CISG

d. The ICC Hague Rules

15.Generally speaking, the national culture can influence the ways in which contracts are treated. From this perspective, which of the following statements about high-context and low-context cultures is true?

a. High-context cultures regard unwritten and informal agreements as unenforceable and are uncomfortable with the uncertainty. Whereas lowcontext cultures view the relationship as long-term, and documents are far less important than maintaining good relationships.

b. Low-context cultures regard unwritten and informal agreements as unenforceable and are uncomfortable with the uncertainty. Whereas highcontext cultures view the relationship as long-term, and documents are far less important than maintaining good relationships.

c. High-context cultures do not ever use unwritten agreements, whereas lowcontext cultures mainly rely unwritten agreements.

d. Low-context cultures do not ever use unwritten agreements, whereas highcontext cultures mainly rely unwritten agreement

16.Deep Sight Ltd is a Canadian defense contractor that produces military-grade optical equipment that is exported to military customers in many countries. The company is currently in a dispute with their distributor in Italy. If the two parties have to go to court to settle their dispute, which country's laws will be applied?

a. It depends on where the lawsuit is filed. If filed in Canada, the laws of Canada will apply. If it is filed in Italy, the laws of Italy will apply.

b. It depends on which party files the lawsuit. If it is filed by the Canadian company, the laws of Canada will apply. If it is filed by the Italian distributor, the laws of Italy will apply.

c. It depends on whether there is a governing law clause in the contract. If there is a governing law clause, it will state which jurisdiction's law will be used to govern and interpret the terms of the contract.

d. It depends on the first signature on the contract. If the first signature on the contract is in Canada, Canadian law will apply. If the first signature on the contract is in Italy, Italian law will apply.