1. ABC Company agrees to sell shoes to Burania, an African country. The sales price of each pair of shoes as of the date of contract will be fixed at 13.00 Baruns (Buranian currency) which as of the date of signing is exactly worth $10.00 USD i .e. $10.00 USD = 13.00 Baruns. One year later, $10.00 USD = 15.2 Baruns. Whose economic interests have been most negatively affected by this fluctuation in currency value?

Neither party is affected at all as the price of a pair of shoes is still the same.

Burania.

ABC Company.

Both parties are affected equally by this fluctuation.

2.ABC has a contract with Juno, Inc located in Rome, Italy. Juno buys shoes from ABC and re-sells them directly to shoe buyers in Juno's department stores located in Rome. The contract between ABC Company and Juno is referred to as ________________________.

a. a foreign sales agent agreement.

b. a foreign distributorship agreement.

c. a joint venture agreement.

d. a manufacturing license agreement.

3.ABC allows a company in Ecuador ("ECC") to manufacture washing machines there using ABC's patent-protected technology and sell them throughout a three-country area. For every washing machine sold by ECC under this arrangement, ABC is to receive compensation equal to 10% of the sales price. What clause (or clauses) below should ABC put into this agreement to help ensure it will receive all of the money it is owed under the ECC agreement?

a. a "right to audit" clause.

b. a clause prohibiting nationalization of ECC by Ecuador.

c. a clause whereby ECC waives its right to assert sovereign immunity in local Ecuadorean courts if there is a fee dispute.

d. a mediation clause.

4.ABC owns and manufactures appliances from its plant in Arlington. It decides to open an operation in Chile and selects William to be its local partner in Chile who invests $10,000,000 of his own money for total startup costs for the Chilean entity of $50,000,000. ABC Chilean operation may be described correctly as a ___________.

Joint Venture