BUS 410 MIDTERM 1 EXAM QUESTIONS WITH VERIFIED ANSWERS LATEST UPDATE 2026

BUS 410 MIDTERM 1 EXAM QUESTIONS WITH VERIFIED ANSWERS LATEST UPDATE 2026 commercial risk - Answers risk that one party to a transaction will fail to perform as promised risk management - Answers continuing process to identify, analyze, evaluate, and minimize loss exposures and to mitigate adverse affects of loss ability to risk manage is dependent on: - Answers knowledge and experience transport risk - Answers - potential for unexpected shipping delays and expenses or to damage or loss to goods during transit - passes from seller to buyer at some point currency control risk - Answers when a firm must convert one currency to another before it can be used exchange rate risk - Answers caused by fluctuations in relative value of two currencies forward exchange contract - Answers to buy or sell currency at an agreed rate for a certain time currency option - Answers contract to buy or sell currency at an agreed rate for a certain time forward exchange contract - Answers to buy or sell currency at an agreed rate for a certain time currency option - Answers contract to buy certain amount of currency on or before a date or to let it expire customs brokers - Answers agent of importer licensed to tract business with customs authorities and clear goods for international travel freight forwarders - Answers agent of shippers to arrange transportation and insurance and in assisting in preparing documents for export international Banks - Answers service international trade and business international trade administration - Answers assistnace agencies World Intellectual Property Organization - Answers part of UN intellectual property rights - Answers legal rights which result from intellectual activity in the industrial, scientific, literary, and artistic fields IP licensing agreements - Answers contracts by which the owner of intellectual property can grant specific rights in that property to another property with specified conditions (differ by country) franchising - Answers a business arrangement that uses an agreement to license, control, and protect the use of the franchisor's IP and such IP infringement - Answers the unauthorized reproduction, display, distribution, or use of the IP rights of another (often unintentional) foreign direct investment - Answers ownership/operation or effective control of the productive assets of an ongoing foreign business home country - Answers country whose laws the investing corporation was created/headquartered in host country - Answers target of investment foreign branch - Answers extension of the company in another country (usually not a separate legal entity) foreign subsidiary - Answers separate legal entity from another country whose laws control it (still owned by part corp.) affiliates - Answers multiple subsidiaries controlled by one parent company joint venture - Answers cooperative business venture between two or more companies for profit local participation - Answers a share of the business is owned by nationals of the host country country risk - Answers the potential adverse impact that a foreign country's social, economic, or political system, or their vulnerability to climate change, can have on foreign investment political risk analysis - Answers getting insight into how political risks in a country may affect investment or business (some firms get political risk insurance) newly industrialized countries - Answers - export oriented - rise in per capita GDP and QOL - transitioning from ag to industry international law - Answers the body of rules applicable to the conduct of nations in their relationships with other nations - rules that countries agree to follow - no global authority for enforcement public international law - Answers rules that apply to the conduct of nations in their relationships with each other and with individual citizens or residents private international law - Answers rules that govern the rights and responsibilities of individuals, corporations, or other private parties in their cross border activities primary sources of international law - Answers 1) international treaties and conventions 2) international customs, as evidence of a general practice accepted as law 3) general principles of law recognized by civilized nations treaty - Answers legally binding agreement between two or more nations that is recognized and given effect under international law convention - Answers legally binding multilateral treaty on matters of common concern, usually negotiated on a regional or global basis and open to adoption by many nations protocol - Answers an agreement that modifies or adds to a treaty or convention, or that deals with matters less significant than those dealt within treaties signatories - Answers countries showing agreement to join a treaty ratificaiton - Answers formal agreement of a signatory nation to be bound by the treaty contracting parties - Answers countries that have ratified reservation - Answers exception to a treaty set out by a signatory at the time of ratification reservation - Answers exception to a treaty set out by a signatory at the time of ratification abrogation - Answers nullifies a treaty in that nation self executing treaty - Answers automatic affect; self binding non self executing treaty - Answers requires more legislative or administrative action before enforceable Friendship, Commerce, and Navigation treaties - Answers bilateral agreements that provide a broad range of protection to foreign nationals doing business in a host country customary international law - Answers a body of commonly accepted rules of conduct or international norms that have arisen and that nations oblige by international business law - Answers the body of law and regulations, derived from national and international sources, that governs international transactions law merchant/maritime law - Answers accepted customs and practices of ancient and medieval merchants, traders, bankers, mariners, ship owners jurisdiction - Answers power of a court to act criminal jurisdiction - Answers power of a court to hear a criminal case make an act transactional business crime - Answers bribery, corruption, customs fraud, etc extraterritorial jurisdiction - Answers a nation can project its laws, its jurisdiction, beyond its territorial boarders jurisdiction is based on - Answers territorality nationality protective principle passive personality universality territorial jurisdiction - Answers a nations jurisdiction over everything in its land, air, water nationality jurisdiction - Answers obliged to country's laws wherever protective jurisdiction - Answers jurisdiction over non citizens in the interest of national well being passive personality jurisdiction - Answers right to hear cases stemming from crimes against their citizens by non citizens outside their territory (most countries are skeptical) universal jurisdiction - Answers permission to prosecute agreed upon heinous crimes no matter what international court of justice - Answers most important int body of justice non binding advice from UN no appeal International crimes court - Answers hears genocide, crimes against humanity, war crimes UN guiding principles on business and human rights - Answers firms should: 1) comply w/ applicable laws 2) honor human rights and conflict 3) treat human rights violation as compliance issues international labour organizations - Answers legally binding in ratified countries Organization for Economic Cooperation and Development - Answers intergovernmental org consisting of national government members and non government observers (non legally binding) UN global compact - Answers partnership of international companies, public interest groups, Un agencies that pledge a set of voluntary principles (not legally enforceable) Coalition for Environmentally Responsible Economies (CERES) - Answers 10 guidelines that regulate conduct regarding environment and product safety international organization for standarization - Answers independent non-governmental international organization that manages safety standards corporate codes of conduct - Answers must be told to employees effectively, be a part of culture, and be measured and acted upon Civil law - Answers laws affecting private rights and remedies such as contract law, family law, inheritance law, tort law justinian code - Answers condensed roman law code common law system - Answers where the reasoned decisions of judges become the law of the case, a legally binding precedant stare deisis - Answers let the decision stand language laws - Answers can complicate cross border advertising sometimes things have to be in the national language sometimes censored Foreign Corrupt Practices Act - Answers U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions. Anti Bribery Provisions - Answers prohibits firms from "corruptly" paying or offering to pay a "foreign official" for assistance in obtaining or retaining business alternative fines act - Answers payer has to be fined 2x what the other party gained from the bribe 4 principle points of ambiguity - Answers 1) "grease payment" exception 2) corruptness requirement 3) the knowing requirement 4) instrumentality requirement grease payment exceotion - Answers - the payment must be nominal and for a legitimate, non-discretionary act, not a bribe to gain an unfair business advantage