CPSM exam 1 B5-2

Q: What is another common name for antitrust law in some countries

A: Competition law

Q: Under what broader category of law does antitrust law often fall

A: Economic law

Q: What is the primary focus of antitrust law

A: The impact of business relationships on competition, businesses, consumers, and the marketplace as a whole

Q: What types of behavior are antitrust laws primarily aimed at preventing

A: Anticompetitive behavior and abuse of dominant market power

Q: What is price fixing

A: An agreement among competitors to set prices rather than competing on price

Q: What is a boycott in antitrust law

A: A coordinated refusal to deal with a business or individual

Q: What is an exclusive dealing arrangement

A: An agreement that restricts a party from dealing with competitors

Q: What is one purpose of antitrust laws regarding consumers

A: To prevent practices that harm consumers through reduced competition

Q: What are the four areas addressed by EU competition law

A: Cartels and collusion, market dominance and monopolies, mergers and acquisitions, and government aid to companies

Q: Which aspect of EU competition law is somewhat unique compared to other jurisdictions

A: Regulation of government aid (state aid) given to companies

Q: Can EU member nations have their own competition laws and enforcement agencies

A: Yes

Q: What four areas are covered by India's Competition Act, 2002

A: Anticompetitive agreements, abuse of dominance, regulation of combinations (mergers), and advocacy of competition

Q: Do international trade agreements sometimes address competition issues

A: Yes, agreements such as those under the WTO may include competition-related provisions

Q: Is there a single worldwide body of competition law

A: No

Q: What must be determined when a cross-border transaction raises competition issues

A: Which country's competition law applies

Q: Why do many bilateral competition agreements exist

A: Because there is no global agreement governing competition law enforcement

Q: What are common purposes of bilateral competition agreements

A: Sharing enforcement information, notifying policy changes, and discussing matters of mutual interest

Q: Name some countries or entities with which the U

S

has bilateral competition agreements

A: Australia, Brazil, Canada, the EU, Germany, Israel, Japan, and Mexico

Q: What is a trade agreement

A: An arrangement between countries concerning taxes, tariffs, and trade policies

Q: What is a bilateral trade agreement

A: An agreement between two countries or trading blocs

Q: What is a multilateral trade agreement

A: An agreement involving more than two countries

Q: What is the purpose of preferential trade agreements

A: To reduce trade restrictions such as tariffs and quotas

Q: What is the goal of a free trade agreement

A: To eliminate trade restrictions altogether

Q: What does GATT stand for

A: General Agreement on Tariffs and Trade

Q: When was GATT established

A: After World War II

Q: What agreement led to the creation of the WTO

A: The Marrakech Agreement

Q: When was the WTO established

A: 1995

Q: What does WTO stand for

A: World Trade Organization

Q: How many countries were WTO members as of July 29, 2016

A: 164 countries

Q: What does WTO observer status generally lead to

A: Full membership

Q: Name five major topics addressed by agreements negotiated under GATT

A: Agriculture, anti-dumping, customs valuation, rules of origin, and import licensing

Q: What are four major areas covered by WTO agreements

A: Trade in goods, trade in services, trade-related aspects of intellectual property rights (TRIPS), and dispute settlement

Q: Why is the European Union considered a complex trade agreement

A: It governs a broad range of commercial relationships among member nations

Q: What does NAFTA stand for

A: North American Free Trade Agreement

Q: Which countries participated in NAFTA

A: Canada, the United States, and Mexico

Q: How does NAFTA compare to the European Union as a trade agreement

A: NAFTA is a much more limited trade agreement than the EU

Q: What are the four key areas covered by both EU competition law and India's Competition Act

A: Anticompetitive agreements/cartels, abuse of dominance/monopolies, mergers and acquisitions (combinations), and competition advocacy/enforcement

Q: What is the key difference between antitrust law and contract law

A: Contract law focuses on the relationship between contracting parties, while antitrust law focuses on the effect of business conduct on competition and the marketplace

Q: Why are bilateral competition agreements important

A: They help countries coordinate enforcement in cross-border competition matters

Q: What major international organization emerged from the GATT system

A: The World Trade Organization (WTO)

Q: What is the difference between a preferential trade agreement and a free trade agreement

A: Preferential agreements reduce trade barriers, while free trade agreements seek to eliminate them entirely

Q: What are international trade regulations typically part of

A: Trade agreements and the laws of individual countries

Q: What topics do international trade regulations commonly address

A: Customs, duties, dumping, embargoes, free trade zones, intellectual property, quotas, and subsidies

Q: Why must supply management consider international trade regulations

A: Because international sourcing is affected by the requirements and restrictions imposed by these regulations

Q: What government offices usually enforce international trade regulations

A: Specialized government agencies, often multiple agencies within a country

Q: What is the ITA

The International Trade Administration, a bureau within the U.S. Department of Commerce.

Q: What are the four business units of the ITA

 A: U.S. and Foreign Commercial Service, Manufacturing and Services, Market Access and Compliance, and Import Administration.

Q: Which U.S. agency is responsible for customs and border enforcement?

A: Bureau of Customs and Border Protection (CBP)

Q: Which U.S. agency oversees animal and plant inspections?

A: Animal and Plant Inspection Service (APHIS)

Q: Which U.S. agency contributes to transportation-related security in international trade?

A: Transportation Security Administration (TSA)

Q: Which government department handles trade matters in the Philippines

A: The Department of Trade and Industry (DTI)

Q: What trade-related functions does the Philippine Department of Trade and Industry perform

A: Export promotion, import services, and management of international trade relations

Q: What does the Philippine Tariff Commission establish

A: Rules of origin, tariffs, and most-favored-nation (MFN) rate schedules

Q: What is the mission of the Canadian International Trade Tribunal

A: To provide fair, transparent, and timely investigations of trade remedy cases and procurement complaints

Q: Which Canadian agency administers the Export and Import Permits Act

A: The Trade Controls Bureau

Q: What products are subject to import controls in Canada

A: Textiles and clothing, agricultural products, steel products, and weapons and munitions

Q: Why do governments regulate certain industries

A: To address risks, protect consumers, ensure public safety, protect the economy, or regulate industries with limited competition

Q: What form does industry oversight usually take

A: Laws enacted by legislatures and enforced through administrative agencies and regulations

Q: What are some reasons for industry-specific regulation

A: Consumer protection, public safety, environmental protection, economic control, and market oversight

Q: In some countries, how involved may governments become in regulated industries

A: Governments may own or partially own businesses within those industries

Q: Why is the energy industry commonly regulated

A: Due to health, safety, environmental, and economic concerns

Q: What are Brazil's primary energy regulatory authorities

A: National Agency of Petroleum, Natural Gas and Biofuels; Ministry of Mines and Energy; and National Council for Energy Policy

Q: What are two major government-owned energy companies in Brazil

A: Petrobras and Electrobrás

Q: Why do governments regulate pharmaceuticals

A: To protect public health and safety

Q: Which organization regulates pharmaceuticals in India

A: Central Drugs Standard Control Organization (CDSCO)

Q: What does India's CDSCO regulate

A: New drugs, clinical trials, imports, medical devices, blood banks, narcotics, and cosmetics

Q: What is government procurement

A: The purchasing of goods and services by government entities

Q: Are government entities generally subject to contract law

A: Yes, but they are often subject to additional procurement laws and regulations

Q: What procurement requirements may governments impose

A: Competitive bidding, mandatory contract clauses, labor standards, and supplier qualifications

Q: Why are government procurement requirements often non-negotiable

A: Because they are mandated by law or regulation

Q: What labor-related standards may government procurement regulations require

A: Compliance with wage and hour laws

Q: At what levels can government procurement occur

A: Federal, state/provincial, and local levels

Q: What groups may receive preferential treatment in government procurement

A: Local contractors and historically disadvantaged groups

Q: What environmental procurement initiative is encouraged by the EU

A: Green procurement

Q: What is socially responsible public procurement

A: Procurement that promotes equal opportunity, accessibility for disabled persons, and labor and social rights

Q: What business group does the EU seek to assist through procurement policies

A: Small businesses

Q: What broader regional policy is supported by EU procurement rules

A: The European Neighborhood Policy

Q: What provides the constitutional framework for public procurement in Brazil

A: The Federal Constitution

Q: What law specifically regulates public procurement in Brazil

A: The Public Procurement Act

Q: What major international events prompted additional procurement legislation in Brazil

A: The 2016 Olympics and Paralympics, 2013 FIFA Confederations Cup, and 2014 FIFA World Cup

Q: What procurement rules must Australian government departments follow

A: The Commonwealth Procurement Rules (CPRs)

Q: Which Australian government department administers the CPRs

A: The Department of Finance and Deregulation

Q: What are the main objectives of Australia's CPRs

A: Encouraging competition, ethical procurement, accountability and transparency, risk management, and procurement methodology

Q: What are the major areas covered by international trade regulations

A: Customs, duties, dumping, embargoes, free trade zones, intellectual property, quotas, and subsidies

Q: Name three U.S. agencies involved in international trade enforcement?

A: International Trade Administration (ITA), Customs and Border Protection (CBP), and Animal and Plant Inspection Service (APHIS)

Q: What is the primary purpose of pharmaceutical regulation

A: Protection of public health and safety

Q: What is the primary purpose of government procurement regulations

A: To ensure fairness, competition, transparency, accountability, and compliance with public policy objectives

Q: What are the five key objectives of Australia's Commonwealth Procurement Rules

A: Competition, ethical procurement, accountability and transparency, risk management, and procurement methodology

Q: What procurement priorities are emphasized by the European Union

A: Green procurement, social responsibility, ethical trade, support for small businesses, and neighborhood cooperation

Q: What is intellectual property (IP)

A: Intangible personal property with commercial value that is protected by law

Q: What are the three primary types of intellectual property

A: Copyrights, patents, and trademarks/service marks

Q: Why do governments protect intellectual property

A: To encourage innovation, creativity, and development by providing economic incentives through exclusivity

Q: Why should supply management professionals be concerned about IP

A: They must respect, protect, and avoid violating intellectual property rights

Q: At what level does intellectual property protection begin

A: The national level

Q: Does a patent granted in one country automatically provide worldwide protection

A: No

Q: What determines whether IP protection extends to other countries

A: Bilateral and multilateral agreements between countries

Q: Is there a single international law governing intellectual property

A: No

Q: What international organization promotes cooperation on intellectual property issues

A: The World Intellectual Property Organization (WIPO)