The United Nations Convention on Contracts for the International Sales

question 36

Multiple Choice

The United Nations Convention on Contracts for the International Sales of Goods (CISG) governs  contracts  for the international sales of goods between parties 

• A) l ocated in any nations.
• B) who have specified in their agreement that they will be bound by the CISG.
• C) located in different nations that have ratified the CISG.
• D) where at least one party is a sovereign nation.

---

Definitions:

Goods Produced

The total quantity of physical items that are manufactured or processed by a company or economy within a specific time frame.

Law of Comparative Advantage

A principle that states that individuals, firms, regions, or nations can gain by specializing in the production of goods that they produce cheaply (at a low opportunity cost) and exchanging them for goods they cannot produce cheaply (at a high opportunity cost).

Labor-Intensive Commodities

Goods that require a higher proportion of labor in their production process compared to materials and capital.

Opportunity Cost

The value of the best alternative that must be forgone as a result of choosing a particular action or decision.