Long Exam 1 and 2 Questions Flashcards
It is the payment made to the holder of a copyright, trademark, patent, or other registration of intellectual property.
Royalty
The index used to measure the performance of multinational companies in the international market.
S&P 500
An economic system wherein the government intervenes in those sectors where it feels that private ownership is not in the best interest of society.
Mixed Economy
T or F
The laws of countries governing intellectual property continue to converge by their membership in international organizations.
True
T or F
The UNCLOS sets the exclusive economic zone at 370 miles.
False. 370 kilometers or 200 miles
T or F
The government can take into state ownership troubled firms whose continued operation is felt to be vital to the national interest.
True
T or F
The following pair of countries are in conflict with each other: North Korea and South Korea; Israel and Libya; Philippines and China.
False. Israel and Palestine
T or F
Import restrictions are usually applied to the entire country and not just to a specific industry.
False. Import restriction is applied to the whole industry
T or F
Among the less-developed countries, multi-nationalism of business is politically acceptable and economically desirable.
False. Multi-nationalism of businesses is prevalent among DEVELOPED countries.
T or F
Sovereign states can exercise expropriation without compensation only when the subject company has violated domestic and/or international laws.
True
T or F
Host country cannot control the profits and capital that an MNC can return to the parent company.
False. Exchange control
T or F
RA 9252 defines the archipelagic baseline of the Philippines.
False. RA 9522
T or F
The government of a country can impose control to prevent foreign companies from competing in certain markets.
True
The Philippine Law which allows the use of electronic signatures in business transactions.
E-Commerce Act of 2000
T or F
Once a business activity crosses national boundaries, it is called international business,
False. It should be legitimate business activity.
T or F
A corporation is considered multinational when 30% of its profits are produced in foreign countries.
False. It should be more than 25% of its profits AND control operations in atleast six countries.
T or F
Articles imported into a country are required to enter through a customhouse at the port of entry. However, items not subject to duty can be dispensed with this requirement.
False. All articles whether subject to duty or not are required to enter through a customhouse at the port of entry.
T or F
Non-discriminatory principle means that a sovereign state may allow the operation of a foreign business in its economy as long as the country of origin of the firm also allows businesses from the state to operate there.
False. It should be Reciprocity Principle instead of Non-discriminatory Principle.
T or F
All currencies can be traded and exchanged internationally.
False. Philippines only maintains 18 foreign currencies (countries who we have most transactions with) and 3 of the 18 FCs are freely convertible.
The number of member-states of the United Nations
193 countries
Goods which entered a country outside of the ports of entry.
Sumggled goods
Currencies which have a fairly wide acceptance for the settlement of international obligations and are used as a medium of international transactions.
Freely convertible currencies
The number of countries comprising the ASEAN.
11 countries
A situation wherein two or more related companies sell products to each other at prices that will allow them to get some tax benefits.
Transfer Pricing
The risk that MNCs have to deal with because of the fluctuations in exchange rates.
Business Risk
T or F
The three largest markets in the world are the US, China, and Japan.
False. It is North America, Asia, and Europe.
T or F
Freely convertible currency can be used by two countries in settling their transactions even if that particular currency is not the home currency of either country.
True
T or F
Ease of doing business indicates a country’s openness to multinational companies.
True
T or F
In Philippine Economic Zones, MNC enjoy tax holidays.
True
T or F
Businesses doing exporting or importing are considered multinational companies.
False. To be considered a MNC, it should be independent and self-sufficient.
T or F
All currencies can be traded and exchange intentionally.
False. Philippines only maintains 18 FCs where 3 of it are freely convertible.
T or F
A product is considered dumped if the price is much lower than the price of similar local goods.
True
T or F
Tesla, the company of the current richest man in the world, Elon Musk, is the largest multinational company in the world in terms of market capitalization.
False. It is Apple.
