International Business Law Midterm - Chapter 1

Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc.

A licensee of a limited exclusive license may seek relief from infringement only for the exclusive rights received from the copyright holder.

Foreign Subsidiary

a "foreign" company organized under the laws of a foreign host country, but owned and controlled by the parent corporation in the home country

Franchising

a business arrangement that uses an agreement to license, control, and protect the use of the franchisor's patents, trademarks, copyrights, or business know-how, combined with a proven plan of business operation in return for royalties, fees, or commissions

Foreign Branch

a business presence by the investor in the host country

Joint Venture

a cooperative business arrangement between two or more companies for profit

Quota

a quantitative restriction on imports that limits the quantity of an item that may enter a country annually

Export Control

a restriction on exports of goods, services, or technology to a country or group of countries imposed for reasons of national security or foreign policy

Local Participation

a share of the business is owned by nationals of the host country

World Intellectual Property Organization (WIPO)

a specialized agency of the UN, headquartered at Geneva. Established in 1967 and has 185 member countries. Fosters government cooperation in developing IP policies and coordinates registrations in some IP areas

Direct Exporting

a type of exporting in which the exporter, often a manufacturer, assumes responsibility for most of the export functions, including marketing, export licensing, shipping, and collecting payment

Freight Forwarders/Customs Brokers

act as the agent for the exporter or importer in arranging transportation and insurance for goods, preparing import or export documents, and moving goods through customs

Tarbert Trading, Ltc. v. Cometals, Inc.

agreements that violate the law are void. in this case, an agreement calling for the delivery of a fraudulent certificate of origin is illegal and contrary to public policy

Non-Tariff Barriers

all barriers to the import of foreign goods or services other than tariffs; usually laws or administrative regulations that have the effect, directly or indirectly , of restricting access of foreign goods or services to a domestic market

Tariff

an import duty or tax imposed on goods entering the customs territory of a nation

Sanctions

broader and more comprehensive restrictions on trade and financial transactions with countries, who sponsor international terrorism, engage in the proliferation of weapons of mass destruction, threaten international peace, or violate major principles of international law

Export Trading Companies (ETCs)

can apply for and receive certificates from the US Department of Justice that waive the application of US antitrust laws to their export activities

Licensing Agreements

contracts by which the holder of intellectual property will grant certain rights (the "license") in that property to another party under specified conditions and for a specified time, in return for consideration, such as a fee or royalty or as a part of a larger business arrangement

Bernina Distributors v. Bernina Sewing Machine Co.

cost increases and currency fluctuations alone do not render a contract too "impracticable" to perform

Emerging Market Economy

countries or regions with the potential for rapid economic growth

Countries in Transition

countries that are moving from centrally planned economies (usually based on communist doctrine) to free markets include countries of the former Soviet Union and its former Eastern European allies, China, and others

Newly Industrialized Countries

developing countries that have made rapid progress toward becoming industrialized or technology-based economies, mostly in Latin America, the Middle East, and Southern and Southeast Asia

Confiscation

expropriation without payment of any compensation

Multinational Corporations

firms that have significant foreign direct investment assets or that derive a significant portion or their revenues from more than one country

International Trading Companies

firms that specialize in all aspects of import/export transactions by either buying goods on their own accounts for resale or by acting as middlemen to bring other buyers and sellers together

Host Countries

foreign countries that the companies operate in

License

grant of rights to IP

World Trade Organization (WTO)

helps member countries assure a more uniform application and enforcement of their national IP laws

Developed Countries

high per capita income, high standard of living, in the later stages of industrialization. characterized by advanced technology, modern production and management methods, and advanced research facilities

Export Management Companies (EMCs)

independent firms that assume a range of export-related responsibilities for manufacturers, producers, or other exporters

Foreign Distributors

independent firms, usually located in the country or region to which a firm is exporting, that purchase and take delivery of goods for resale to their customers

Foreign Sales Representatives

independent sales agents who solicit orders on behalf of their principals and receive compensation on a commission basis

Intellectual Property Rights (IP)

legal rights which result from intellectual activity in the industrial, scientific, literary, and artistic fields

Least Developed Countries

low per capita income, poor nutrition and health, high adult literacy, unstable agricultural production, weak export economy, and large populations displaced by natural disasters

Developing Countries

lower per capita income, lower standard of living, higher foreign debt, more rapid population growth, and a history of greater state control over their economy.

FDI

provides greatest degree of market penetration, as well as the greatest risk

Currency Controls

restrictions on foreign currency transactions used by some developing countries that do not have large reserves of foreign currency

Exchange Rate RIsk

results from the fluctuations in the relative value of two currencies when one is exchanged for the other

Affiliates

several subsidiaries owned by one parent

Home Country

the country under whose laws the investing corporation was created or is headquartered

Union Carbide Corporation Gas Plant Disaster at Bhopal

the doctrine of Forum Non Conveniens states that to further the administration of justice, where a case is properly heard in the courts of more than one country, it should be heard in the country with the greater interest in the outcome of the case, and where it is most convenient

Importing

the entering of goods into the customs territory of a country of the receipt of services from a foreign provider

Indirect Exporting

the firm uses specialized intermediaries that can take on many of the export functions. examples include export trading companies and export management companies.

Trade

the import or export of goods and services across national borders, usually as part of an exchange

Foreign Direct Investment (FDI)

the ownership and operation or effective control of the productive assets of an ongoing business by an individual or corporate investor who is a resident or national of another country

Supplier Risk

the possibility of being victims of fraud or receiving defective goods

Trade-In Services

the providing of services to a customer or the operation of service companies in a foreign country

Property/Marine Risk

the risk that goods can be damaged by salt water or air, ships wreck, planes crash, refrigeration breaks down, etc

Payment/Credit Risk

the risk that the buyer will fair or refuse to pay

Political Risk

the risk to a firm's business interests resulting from political instability or civil unrest, political change, war, or terrorism in a country in which the firm is doing business

Transfer of Technology

the sharing of scientific information, technology, and manufacturing know-how between firms, universities, or other institutions

Exporting

the shipment of goods out of a country or the rendering of services to a foreign buyer located in a foreign country

Expropriation

the taking by a government of privately owned assets, such as real estate, factories, farms, mines, or oil refineries, with the payment of some compensation

Nationalization

the transfer of private-sector firms to government ownership and control, usually with payment to shareholders and pursuant to a larger plan to restructure a national economy

Infringement

the violation of the IP rights of another, and often occurs in the unauthorized use, distribution, or appropriation of those rights aka piracy or counterfeiting

Transnational Corporation

used in the UN system, this term reflects that the corporation's operations and interests "transcend" national boundaries