Which of the Following Is False Regarding Insurance and the International

question 5

Multiple Choice

Which of the following is false regarding insurance and the international sale of goods?

• A) Manufacturers typically have insurance only in their home country because, under international law, the home country's law would be applied in the event of disputes.
• B) Product liability awards may vary in amount from country to country.
• C) Complications may arise from having insurance companies in several different countries.
• D) A manufacturers in Germany, for example, could seek insurance through a German insurance company regardless of where its products are shipped.
• E) Today, manufacturers are likely to have an insurance company in every country to which they ship goods.

---

Definitions:

Securities and Exchange Commission

A U.S. government agency responsible for regulating the securities markets and protecting investors by enforcing securities laws.

Regulatory Capture

A situation in which regulatory agencies are dominated by the industries they are supposed to be regulating, often leading to decision-making that benefits the industry at the expense of the public interest.

Wall Street

A symbol for the financial markets and institutions located in the Financial District of Lower Manhattan, New York City, often associated with the American financial sector and stock market.

Financial Firms

Businesses that provide financial services such as banking, investment, insurance, and asset management.