QN1: German machine tools, Japanese cars, and French perfumes are products that are produced abroad and often of better quality than those produced domestically.
Answer
Answer: True.
QN2: Due to the large gap between the rich and poor in countries throughout the world, today’s consumers tend not to be quality/brand name conscious, and are not willing to pay a higher price for good quality products.
Answer
Answer: False. Today’s consumers are quality/brand name conscious, and are willing to pay a higher price for good quality products.
QN3: Trade fairs are the only method of finding foreign products that are of good quality.
Answer
Answer: False. Trade fairs, trade shows, exhibitions, trade publications, and so on are other ways of finding popular products.
QN4: In many Asian countries, consumers often base their purchasing decision on proof of certification for the product or service.
Answer
Answer: False. In European, not Asian, countries this occurs.
QN5: Larger countries (in terms of population) import manufactured goods more frequently on a per capita basis because they tend to have a less diversified industrial base.
Answer
Answer: False. Larger countries (in terms of population) import manufactured goods less frequently on a per capita basis because they tend to have a more diversified industrial base.
QN6: Major factors in international supplier selection include financial conditions, trade restrictions, and cultural and communication barriers.
Answer
Answer: True.
QN7: Selection of the supplier should also be based on the integrity of the product, which includes the assumptions that the importer does not violate any intellectual property rights registered in the country.
Answer
Answer: True.
QN8: The disadvantage of outsourcing includes political and labor problems and currency fluctuations, but it also has the benefits of providing the opportunity to quickly respond to market changes.
Answer
Answer: False. Outsourcing makes it harder to respond to market changes.
QN9: In this age of intense competition, firms that manufacture standardized products can no longer rely on firm-specific advantages arising solely from technology.
Answer
Answer: True.
QN10: The making of an entry is generally required within eight working days after the arrival of the importing vessel or aircraft.
Answer
Answer: False. It is required within six working days.
QN11: Entry documents generally consist of an entry manifest (Form 7533) or application and special permit for immediate delivery (Form 3461).
Answer
Answer: True.
QN12: Liquidation is the first step in the ascertainment of the duties and drawback accruing on an entry by customs.
Answer
Answer: False. It is the final step.
QN13: The HSUTU was adopted in 1988, which provides a commodity description and coding system that is predominately used by other nations.
Answer
Answer: False. HTSUS was adopted in 1988.
QN14: Computed value is the final step when imported merchandise is appraised.
Answer
Answer: True.
QN15: The computed value does not include costs of materials, but cost of services only.
Answer
Answer: False. It includes costs of materials, labor, and overheads.
QN16: The ABI permits participants to electronically file required data with customs.
Answer
Answer: True.
QN17: For the United Stated specifically, all imported articles must be marked with the English and Spanish name of the country of origin unless otherwise indicated. This is based on the fact that Spanish is the second most-spoken language in the United States.
Answer
Answer: True.
QN18: Once the merchandise has been released from customs, a bond must be posted to guarantee payment of duty upon final assessment of duty.
Answer
Answer: True.
QN19: A bond is also known as a carnet because it serves as a customs entry document in order to ensure a guarantee payment of duty.
Answer
Answer: False. Bond and carnet are separate documents, not the same.
QN20: U.S. antidumping and countervailing duty laws have been subject to several changes over the years; the most recent amendments were to implement the Uruguay Round Agreements of the GATT.
Answer
Answer: True.
QN21: Actionable subsidies are subsidies conferred on a public corporation to encourage exports or to promote use of domestic goods.
Answer
Answer: False. They are conferred on a producer.
QN22: Typically, the USTIC considers the collective impact of all imports of a product from a given country in arriving at its injury determination.
Answer
Answer: False. The USITC does this.
QN23: Intellectual property rights are one form of exclusive rights conferred by the state to promote science and technology.
Answer
Answer: True.
QN24: A patent is a word, name, symbol, or device or any combination of these used by a manufacturer or seller of goods to identify and distinguish the particular manufacturer’s goods from goods made or sold by others.
Answer
Answer: False. This is a trademark.
QN25: In some countries, a formula might be patentable, whereas methods of production based on personal skills are not patentable.
Answer
Answer: True.
QN26: In the United States, Section 336 of the Tariff Act of 1931 authorizes the International Trade Commission (ITC) to institute an investigation into the importation of articles that may infringe on U.S. patents, trademarks, or copyrights.
Answer
Answer: False. This is Section 337 of the Tariff Act of 1930.
QN27: In Argentina, the National Intellectual Property Institute (INPI) has begun to approve patents for pharmaceutical products, and India provides product patent protection to drugs, food, agricultural, and chemical substances.
Answer
Answer: True.
QN28: The Patent Cooperation Treaty (PCT) allows for multiple applications and a worldwide search for novelty in all member countries; that is, a search is made in one of the designated offices based on a single application without the need to file applications in all other member states.
Answer
Answer: False. The PCT allows for a single application.
QN29: Developing countries criticize the intellectual property conventions administered by WIPO because their minimum standards are considered insufficient and they contain no provisions for dispute settlement. Member states retain broad discretion in granting intellectual property rights.
Answer
Answer: False. Developed countries criticize the WIPO.
QN30: The TRIPS agreement covers almost all forms of intellectual property including patents, trade and service marks, industrial designs, trade secrets, and layout designs of integrated circuits.
Answer
Answer: True.
QN31: The major regional agreement in the area of intellectual property rights (IPRs) is the European Patent Convention (1977), under which a single application may result in the grant of a European patent valid in all member countries.
Answer
Answer: False. It is the European Patent Convention of 1973.
QN32: International agreements on IPRs include the Paris Convention, the Universal Copyright Convention, the Patent Cooperation Treaty, and trade-related aspects of IPRs (the TRIP) agreement
Answer
Answer: True.
