Globalization

• Affects
Aff t business
b i formation,
f ti contracts
t t andd
negotiations, logistics, etc.
• Affects how you do business abroad

0RGHUQ
0RGHUQ
6KDQJKDLŸ
 International Law
€ Public International Law
y formed by international customs
customs,
treaties, and organizations
y governs relations among nations
€ Private International Law
y national laws (laws of a particular
nation) related to international
$IJKDQL:RPHQLQ
issues that affect private citizens
)URQWRI816LJQ
 Sources of International Law
€ The sources of international law are:
y International Customs
y Treaties and International Agreements
ż Including regional treaties (NAFTA
(NAFTA, EU
EU, ASEAN
ASEAN,
Mercosur)
y International Organizations and Conferences
y National Laws
 Basic Principles and
Doctrines of Int
Int’ll Law
€ Important principles
and doctrines applied
in the interest of
maintaining
harmonious relations
among nations
include:
y Act of State Doctrine
y Doctrine of Sovereign
Immunity .HQ\DQ%R\V
y Doctrine of Comity
 Act of State Doctrine
€ Judicial branch of one country will not examine
validity of public acts committed by recognized
foreign government within its own territory
€ Thus nations may:
y Expropriate: occurs when host government interferes
with
ith fforeign
i iinvestor's
t ' ffundamental
d t l ownership
hi rights
i ht
y Confiscate

+-+HLQ]IRUFHGWRVHOOWRPDWR
+ - + L I GW OO W W
SURFHVVLQJSODQWXQGHUWKUHDWRI
9HQH]XHODQH[SURSULDWLRQ
 Doctrine of Sovereign Immunity
€ Exempts foreign nations from jurisdiction in
U.S. courts
€ Foreign Sovereign Immunities Act expanded
jurisdiction of U.S. courts for creditors of
foreign governments
€ Note: sovereign immunity also prevents a
citizen from suing a government!
y Theoretically…see Peterson v Iran
 Principle of Comity
€ One nation defers and gives effect to laws and
judicial decrees of another nation, as long as
those laws and judicial decrees are consistent
with the law and public policy of
accommodating g nation

/LVERQ
 International Law & Business
€ International law
applies to business to
the extent it affects
y business organization
and development,
y ways of doing business
in foreign states, and
y ways of doing business
domestically with 7H[WLOHSODQWLQ6UL/DQND
foreign trading partners FRQWUDFWRUIRUPDMRU86OLQJHULH
ILUPV
 Impact of Treaties on Business
€ Treaties impact private individual rights
because state’s obligation becomes a citizen’s
obligation
y E.g., Convention on Global Warming
 GATT
€ General Agreement on Tariffs and Trade is
primary treaty affecting U.S. business
y Initiated after WWII
y Goal: reduce & eliminate trade barriers
y US signed
g in 1994, with 124 other nations
€ GATT created World Trade Organization
(WTO) to resolve trade disputes
y Currently (8/07): 151 members
 WTO
€ WTO’s decision
WTO’ d i i record d causes concern about
b t
impact of trade on environment & human
rights
€ WTO working on General Agreement on
Trade in Services

3URWHVWLQJ7UDGH,VVXHVದ
J
:DVKLQJWRQ'&
 CISG
€ U.N.
U N C
Conventionti on th
the IInternational
t ti lSSale
l off
Goods (1980)
€ Automatically applies to international sales
transactions of businesses within signatory
nations unless they opt out
€ Similar to the U.S. Uniform Commercial
Code ((UCC), ), but:
y writing not required, mirror image acceptance,
additional remedies for breach of contract