When Dealing with International Business Transactions,knowing and Complying with Both

question 40

Multiple Choice

When dealing with international business transactions,knowing and complying with both local and Canadian policies and laws is an important consideration.This generally will include all of the following except:

• A)arrangements for financing.
• B)ensuring that contractual terms limiting liability are included in agreements.
• C)ensuring adequate insurance coverage is acquired.
• D)ensuring that a process for arbitrating disputes is clearly set out.
• E)ensuring that foreign officials who can impact on the success of the business are appropriately taken care of.

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Definitions:

Trade Agreement

A formal arrangement between two or more countries to regulate tariffs, trade barriers, and other trade-related issues.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that established a trilateral trade bloc in North America.

GATT

The General Agreement on Tariffs and Trade, a legal agreement between countries to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas.

FTAA

The Free Trade Area of the Americas, a proposed agreement to eliminate or reduce trade barriers among all countries in the Americas, excluding Cuba.