Chapter 9- International Law Powerpoint Presentation

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    Chapter 9

    International Law

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    Quotes of the Day

    What affects men sharply about a foreign nation

    is not so much finding or not finding familiar

    things; it is rather not finding them in the familiar

    place.G.K Chesterton, British Author

    The greatest meliorator of the world is selfish,huckstering trade.Ralph Waldo Emerson,

    American Philosopher and Poet

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    International Trade

    In 1992, the United States exported $448 billionworth of goods and services.

    In 1997, just five years later, that figure hadswelled to over $930 billion.

    That is a 110% increase in five years!

    Now, the United States exports more than $800billion worth of goods and an additional $330

    billion worth of services.

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    Multinational Enterprises(MNE)

    Many MNEs have more available cash than themajority of nations.

    The power represented in this cash means thatinternational regulations are vital.

    A multinational enterprise is a corporation that doesbusiness in several countries simultaneously.

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    Tariffs A duty (tax) imposed on goods entering a country.

    Duties for Dumping and Subsidizing Dumping is selling goods in a foreign market for less

    than normal price to drive out local competition.

    Trade Regulation--Import Controls

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    Quotas A quota is a limit on the quantity of a

    particular good that may enter a nation.

    Quotas may grow a certain percentage peryear, or stay the same.

    Trade Regulation - Import Controls/Nontariff Barriers

    Import Ban

    An import ban means that certain goods areflatly prohibited.

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    General Agreement on Tariffsand Trade (GATT)

    History of GATT GATT is an international treaty which dates

    back to the 1940s.

    Even with the perceived benefits, opponentsclaim that the US will not be able to competewith countries that have under-paid workers.

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    GATT -- (contd)

    World Trade Organization The WTO is an international court.

    Issues raised by and addressed byGATT

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    Regional Agreements

    The European Union (EU) 25 countries ofEurope

    Sets standards for tariffs, dumping, subsidies,antitrust, and transportation.

    North American Free Trade Agreement

    (NAFTA) -- Mexico, Canada, USA Eliminates almost all trade barriers among the

    three member nations.

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    Regional Agreements

    Association of South-East Asian Nations(ASEAN) -- 10 Asian countries

    Mercosur -- 4 South American countries

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    International Sales Agreement

    Direct Sales -- domestic manufacturer toforeign store

    The United Nations Convention on Contracts for theInternational Sale of Goods (CISG) governs contractsbetween two parties from two signatory countries,unless they specifically opt out.

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    International Sales Agreement

    Indirect Sales -- through a distributor inthe foreign country

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    Antitrust Law

    European Antitrust Law, from the Treaty ofRome, outlaws any agreement, contract,

    or discussion that distorts competitionwithin EU countries.

    American Antitrust Law, from the Sherman

    Act, controls anticompetitive conduct thatharms the American market.

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    International SalesAgreement

    How conflicts are handled

    Licensing -- giving a foreign companyrights to produce your product

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    Investing Abroad

    Repatriation of Profits -- some countriesallow profits made by foreign investors tobe taken back home; others do not.

    Expropriation -- in some cases, private

    businesses can be bought (for a fair price)by the government without consent.

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    Investing Abroad (contd)

    Most nations respect the principle of sovereignimmunity in which courts of one nation lack the

    jurisdiction (power) to hear suits againstforeign governments.

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    Investing Abroad (contd)

    Act of State Doctrine

    Requires an American court to abstain fromany case in which a court order wouldinterfere with the ability of the President orCongress to conduct foreign affairs.

    Investment insurance is often a wise businessexpenditure when investing abroad.

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    Investing Abroad (contd)

    The Organization for EconomicCooperation and Development (OECD)

    produced a Convention of CombatingBribery of Foreign Public Officials inInternational Business Transactions.

    About 36 of the worlds largest tradingnations have ratified the Convention.

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    The world is one economy, with every

    country linked in countless financial waysto almost every other. To conduct business

    today is very often to engage in

    international commerce, and that makes itimportant to understand the basics of

    international law.

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    The End

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