chapter 7: international law

Export Promotion

the US Commerce Department plays a leading role in the NEI to help US Companies increase their export sales in high-growth developing markets and fast-growing sectors

Other Free Trade Agreements

the colombian trade agreement included provisions requiring an exchange of tax information and the panama bill incorporated labor rights assurances

Restrictions on technology exports

the flow of technologically advanced products and technical data can be restricted

Comity

the principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation, as long as they are consistent with the law and public policy of the accommodating nation. This recognition is based primarily on respect

Antidumping Duties

the sale of goods in a foreign country at a price below the price charged for the same goods in the domestic market

Export

the sales of goods and services by domestic firms to buyers located in other countries

Adopt Resolution

these organizations often adopt resolutions, declarations, and other types of standards that often require nations to behave in a particular manner

International Principles and Doctrines

used to resolve or reduce conflicts that involve a foreign element

Incentives and subsidies

used to stimulate other exports by aiding domestic business through the Export Trading Company Act

The Republic of Korea-United States Free Trade Agreement (KORUS FTA)

will eliminate 95% of each nation's tariffs on industrial and consumer exports

International Customs

Article 38(1) of the Statute of the International Court of Justice refers to an international custom as "evidence of a general practice accepted as law."

Export Controls

Article I, Section 9 states "no tax or duty shall be laid on articles exported from any state"

Create Uniform Rules

CISG spells out the duties of international buyers and sellers that will apply if the parties have not agreed otherwise in their contracts. CISG governs only sales contracts between trading partners in nations that have ratified the CISG

International Tort Claims

The Alien Tort Act (ATCA) allows even foreign citizens to bring civil suits in US courts for injuries caused by violations of international law or a treaty of the US

Indirect Exporting

US corporation may set up a specialized marketing organization in that foreign market by appointing a foreign agent or distributor

Direct exporting

a US company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment for the goods

Doing Business Internationally

a US firm can establish foreign production facilities so as to be closer to the foreign market or markets in which its products are sold

Correspondent Bank

a bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers

Choice-of-Language Clause

a clause in a contract designating the official language by which the contract will be interpreted in the event of a disagreement over the contract's terms

Joint venture

a company owns part of the operation and share responsibilities

Distribution Agreement

a contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship

Act of State Doctrine

a doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory

The Doctrine of Sovereign Immunity

a doctrine that immunizes foreign nations from the jurisdiction of US Courts when certain conditions are satisfied

Licensing

a firm can license a foreign manufacturing company to use its copyrighted, patented, or trademarked intellectual property or trade secrets with payment of royalties

Subsidiaries

a firm establishes a subsidiary firm and retains ownership of all the facilities as well as total authority and control over phases of the operation

Expropriation

a government's seizure of a privately owned business or personal property for a proper purpose and with just compensation

Confiscation

a government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation

Normal trade relations (NTR) status

a legal trade status granted to member countries of the WTO

Forum-Selection Clause

a provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the contract

Force Majeure Clause

a provision in a contract stipulating that certain unforeseen events - such as war, political upheavals, or acts of God - will excuse a party from liability for nonperformance of contractual obligations

Quota

a set limit on the amount of goods that can be imported

Tariff

a tax on imported goods which can cause consumers to purchase more domestic goods and fewer imported goods

Foreign Exchange Market

a worldwide system in which foreign currencies are bought and sold

Letter of Credit

a written document in which the issuer (usually a bank) promises to honor drafts or other demands of payment by third persons in accordance with the terms of the instrument

Bilateral agreement

agreement formed by two nations to govern their commercial exchanges or other relations with one another

Treaty

an agreement or contract between 2 or more nations that must be authorized and ratified by the supreme power of each nation

ITC

assess the effects of dumping on domestic businesses and then makes recommendations to the president concerning temporary import restrictions

International Organization

composed mainly of member nations and usually established by treaty

Export quotas

congress sets export quotas on various items

The European Union (EU)

create a body of law to govern all the member nations by issuing regulations

The North American Free Trade Agreement (NAFTA)

created a regional trading unit to eliminate tariffs among these counties by reducing the tariffs incrementally over a period of time

ITA

decides whether imports were sold at less than fair value

Choice-of-Law Clause

designating the law that will govern the contract

Manufacturing Abroad

established to reduce their costs (labor, shipping, raw materials) to enable them to compete more effectively in foreign markets

Multilateral agreement

formed by several nations (ex. ANCOM, ASEAN, EU)

The Foreign Sovereign Immunities Act (FSIA)

governs the circumstances in which action may be bought in the US against a foreign nation. A foreign state is not immune from the jurisdiction of US Courts in the following situations:

International Law

if a nation violates an international law and persuasive tactics fail, other countries or international organizations have no recourse except to take coercive actions

When a Foreign Government Takes Private Property

important consequences for individuals and firms doing business with, and investing in, other countries

The National Export Initiative

in an effort to increase US exports, its goal is to double US exports by reducing outsourcing

Investment Protections

in order to protect investors from the possibility of confiscation, forms of statutory laws or provisions in international treaties are created

US Antitrust Laws

includes the Sherman law which subject firms in foreign nations to their provisions, as well as protect foreign consumers and competitors from violations committed by US citizen

Prohibited goods

no goods may be imported from nations that have been designated enemies of the US

Contract clauses

parties should include special provisions in the contract that designate the language of the contract, the jurisdiction where any disputes will be resolved, and the substantive law that will be applied in settling any disputes

The Value of a Letter of Credit

payment is made against the documents presented by the beneficiary and not against the facts that the documents purport to reflect

Antidiscrimination law

prohibit discrimination on the basis of race, color, national origin, religion, gender, age, and disability

The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR)

reduces tariffs and improve market access among all the signatory nations

Political factors

some countries impose tariffs on goods from a particular nation in retaliation for political acts

Doctrine May Immunize a Foreign Government's Actions

tend to immunize (protect) foreign governments from the jurisdiction of US Courts.

Increased Export Financing

the Export-Import Bank of the US increased financing to small to medium-sized businesses