9358900
Description
Flashcards by Nedia Zayani, updated more than 1 year ago
|
Created by Nedia Zayani
over 8 years ago
|
|
| Question | Answer |
| Degrees of penetration into a foreign market | 1. simple export-import market 2. establish an agent abroad 3. contract manufacturing 4. Foreign Direct Investment (FDI) 5. Multinational enterprise |
| Anti Competition efforts: Anti dumping duties | imported goods are sold at a lower price than i the exporters home market |
| Anti- competition efforts: countervailing duties | Foreign country subsidizes its exports even if the sale price is the same in both countries |
| Counsel in International business: competence | domestic context: knowledge of subject matter international context: cultural, language, customs |
| Counsel in International Business: Ethics | US ethics rules do not necessarily apply abroad. - attorneys in other countries are not subject to US ethics - Bribery not necessarily an ethical issue in other countries |
| Basic company structure: | CEO-> Presidents of different divisions->VP and general counsel-> in house legal department * for some issues, companies will farm out to private companies |
| IMF: | Established to create restrictions on regulations of currency and foreign exchange control |
| GATT | initially a treaty - WTO created to administer the GATT - if signed, try and lower tariffs among countries |
| World Bank | -Est. 1944 to aid in the reconstruction of Europe - provides loans in support of economic development worldwide |
| Four principle channels of economic exchange | 1. trade and goods 2. trade and services 3. Foreign Direct Investment 4. transfer of knowledge and technology |
| Modern forms of international business: trade and goods | - traditional measure of trade and competitiveness - traditionally developed countries controlled trade and goods - US Market share export of goods has gone down recently - share increases in developing countries |
| Modern forms of international business: trade and services | - harder to measure - growing, companies are stating to move many department and service abroad because of increase in trade and services - GATS- general agreement on trade and services |
| Modern forms of international business: Foreign Direct Investment (FDI) | - requires the creation or acquisition of a business entity in another country |
| Modern forms of international business: transfer of knowledge and technology | area of biggest disagreement between developed nations and developing nations |
| Role of Multinational enterprise | -when a company creates or buys a business in multiple countries - role in world affairs: over 1/3 of world trade involves MNE some MNE are more wealthy than entire countries |
| Globalization | the relatively free movement of goods, services, capital, technology and people all over the world - MNE a driving force behind globalization |
| issues of developed versus underdeveloped nations | - reparations and compensations: developing nations would argue that developed nations are responsible for them being underdeveloped - exemptions from legal requirements: developed nations made their money when there were not any legal requirements IP laws: developed nations are further ahead because there were not laws to stop them from copying things |
| private law | the law governing legal relations between private individuals and firms Hallmark: parties have the power to alter rights and obligations |
| Public law | the law dealing with public rights - securities law - tax law - international customs law -Hallmark: parties do not have the power to alter rights and obligations |
| Public international law | the law governing the relations between nation states - created by treaties and customary international law - little effect on IBT - form of implied consent |
| private international law | choice of law rules in an international context - the use of domestic choice of law rules to determine which country's laws will apply to the transaction (look at 23 for restatement factors) |
| Lex mercatoria | - international common law system - only applied to business transactions - unwritten form of international common law - present: hybrid connection between public international law and private international law |
| sources of law for international business transaction | -treaties - model laws and codes - model contracts -restatements |
| UNCITRAL | - part of the UN - 60 member countries - UN's commission on international trade law - core legal body of the UN that deals with trade and commerce ** most important role: creates treaties that have the force of law on any nations that has adopted the treaty - drafts model laws - arbitration rules |
| CISG | issued by UNCITRAL - the convention of contracts on the international sale of goods - if signed, replaces domestic law - only applies to the sale of goods- NOT services |
| UNIDROIT | - adopted a non-binding model law - Principles: - a restatement of the law - not binding - influential -acts like a gap filler, interpretive tool |
| ICC: international chamber of commerce | - private non-profit - created by business groups -INCOTERMS |
| Sources of international business law that effects international business transactions | public international law regional supranational law uniform codes domestic law |
| Regional supranational law | treaties or regulations directive: requirement that member countries ensure that their own laws conform to |
| uniform codes | No inherent legal force only become effective when adopted by parties as part of their contracts - INCOTERMS - CIF, FOB - UCP |
| Domestic law | if the other three do not apply and parties do not decide which country's law should apply-- do private international law analysis - parties can decide which country's laws would apply at the time of the contracts conception |
| exclusion | not included at all in a treaty - look to principles and/ or do private international law analysis |
| gap | treaties that apply, but there is a small aspect that is not covered - can turn to UNIDROIT principles to fill gap |
| role of international law in the US | state law is trumped by treaty or customary international law |
| WTO | purpose: administer WTO agreements - tasks: forum negotiations, administer dispute settlement, administer trade policy review mechanism, cooperate with IF and the world bank - to governmental bodies: ministerial conference, general council, |
| 4 principle agreements ad administered by the WTO | GATT GATS TRIPS DSU |
| GATT | lowers tariffs to a level that is listed on a schedule of tariffs - exceptions to imposing higher tariffs: - developing nations - emergency |
| GATS | general agreement on trade and services |
| TRIPS | trade related intellectual property rights |
| DSU | dispute settlement understanding |
| Customs unions and free trade agreemetns | -NAFTA -European Union - ASEAN and APEC - Free trade in the Americas - GSP - OECD |
| institutions in the US | CIT: Court of international trade Court of Appeals for the federal court US customs and border patrol commerce department ITA: international trade agreement ITC: can impose duties for dumping USTR: has the power to trigger dispute settlement proceedings against foreign nations on behalf of US business issues with involving USTR: escalates dispute, company no longer has control |
| Documentary Sales transactions contracts: | sales contract letter of credit bill of lading and contract of affreightment |
| Sales contract | buyer is making an offer and a seller is accepting that offer Steps: - letter/ email sent requesting info on product - proforma invoice can be sent to the company inquiring about cost - buy chooses whether to accept or decline - proforma invoice is NOT an offer - Offer comes WITH purchase order - Sellers final acknowledgment is the acceptance |
| Letter of Credit | - method of payment allows seller to obtain payment from buyers bank upon presentation of certain documents including: - BOL, commercial invoice, insurance certificate, |
| Letter of Credit setup | - buyer goes to bank in home country - requests letter of credit for seller and bank issues |
| issuing bank | bank that issues the letter of credit, typically in buyers home country |
| confirming bank | bank that confirms the letter of credit is valid and gives the money to the seller, and then gets the money from the issuing bank. - typically in sellers home country |
| Bill of lading and contract of affreightment | Contract of affreightment: shipping contract BOL: title to the goods being shipped - issued by the boating company - can be stamped with "clean on board" or "received for shipment" |
| non-negotiable BOL | receipt- not ownership of the goods "straight BOL" or "white bill of lading" states who the carrier is delivering the goods to |
| negotiable bill of lading | -MUST use negotiable bill of lading in document sales transaction - "yellow BOL" - specifically filled out to order of shipper |
| "clean on board" | goods have been looked at after being loaded on to the ship and it does not look like anything was damaged in the loading process |
| "received for shipment" | products could have been damaged while being placed on the boat - goods aren't checked after being loaded |
| COGSA | Carriage of Goods by Sea Act - applies when shipping to or from the US - limits liability to $500 per package - should buy insurance beyond the $50 depending on the goods |
| INCOTERMS | - EXW F terms: risk of loss passes from seller to buyer when they cross the rail of the ship -FOB - FCA C terms: seller has to pay for the carriage but the seller doesn't assume the risk the point of shipment -CFR -CIF - D terms: seller agrees o bear all risks and all costs of shipment of goods |
| EXW | the sellers only duty is to make the goods available at their place of business |
| FOB | free on board - to correctly use, FOB followed by the name of the port of shipment |
| CFR | cost and freight |
| CIF | cost and insurance and freight - seller is paying for the insurance as well |
| FCA | free carrier |
Want to create your own Flashcards for free with GoConqr? Learn more.