Legal Environment in International Business

Which of the following is the main purpose of international business law?

• To protect domestic businesses.

• To regulate cross-border transactions.

• To establish trade monopolies.

• To control international currency.

Which legal system is most common in the world and is based on comprehensive written laws or codes?

• Common law

• Civil law

• Theocratic law

• Customary law

In which type of legal system are court decisions considered a primary source of law?

• Common law

• Civil law

• Religious law

• Bureaucratic law

What is the term for the legal process in which a business is granted exclusive rights to produce and sell a product?

• Licensing

• Franchising

• Patent

• Merger

Which organization is responsible for settling trade disputes between nations?

• International Monetary Fund (IMF)

• World Bank

• United Nations

• World Trade Organization (WTO)

Which of the following is NOT a form of intellectual property?

• Patent

• Copyright

• Trademark

• Tariff

Which of the following international laws deals with issues such as pollution and resource exploitation?

• Environmental law

• Contract law

• Corporate law

• Labor law

Which concept refers to the idea that a business must obey the laws of the country in which it operates, even if these laws differ from the home country?

• Extraterritoriality

• Sovereignty

• Legal compliance

• Foreign direct investment (FDI)

What is the term for a formal agreement between two or more countries to reduce tariffs and trade barriers?

• Bilateral agreement

• Trade embargo

• Trade monopoly

• Trade retaliation

What legal principle allows a foreign government to take over a company's assets but must provide compensation?

• Expropriation

• Nationalization

• Privatization

• Confiscation