8. International Law

International Business — Quiz

Test your understanding of international business with 5 practice questions.

Practice Questions

Question 1

A multinational corporation (MNC) is considering a significant foreign direct investment (FDI) in a developing country. The host country's government has a history of political instability and expropriation of foreign assets. Which of the following legal mechanisms would be most effective for the MNC to mitigate the risk of expropriation?

Question 2

In a cross-border transaction involving the sale of goods between a seller in Country A and a buyer in Country B, both of which are signatories to the United Nations Convention on Contracts for the International Sale of Goods (CISG), a dispute arises regarding the conformity of the goods. The contract specifies that the laws of Country A govern the agreement. Which of the following statements accurately describes the applicable law?

Question 3

A company in Country X manufactures specialized industrial machinery and wishes to export it to Country Y. Country Y imposes a high tariff on imported machinery to protect its domestic industry. To circumvent this tariff, the company considers establishing a manufacturing plant in Country Y. This strategy primarily addresses which aspect of international business law?

Question 4

A global technology company is accused of engaging in anti-competitive practices by leveraging its dominant market position in one country to stifle competition in another. Which international legal framework or principle is most likely to be invoked in addressing such a scenario?

Question 5

A European company enters into a contract with an Asian supplier for the manufacture of electronic components. The contract includes a clause stating that any disputes arising from the contract will be resolved through arbitration in Singapore under the rules of the Singapore International Arbitration Centre (SIAC). Which of the following best explains the legal significance of this clause?