Chapter 8

information technology

Historically, patent, copyright, and trademark protection extended only within the borders of each country. -Trend toward international protection of copyrights, patents, and trademarks. -In 1988, the U.S. became the 80thmember of the Berne convention for the Protection of Literary and Artistic Works. -The European Patent Convention and Patent Cooperation Treaty provide multinational patent protection with one application. -n 1996, Madrid Agreement, allows one application to protect trade secrets among 96 members. -Trademark protection is moving slowly; large US companies such as Apple lose millions each year due to counterfeit goods.

Banco Nacional de Cuba v. Sabbatino

Holding: Relying on the Act of State doctrine, the Supreme Court allowed Cuba's expropriation of private property based on the U.S. government's decision to impose economic sanctions on Cuba

antitrust laws

laws that prevent monopolies and promote competition and fairness -The U.S. antitrust laws are intended to ensure that business in the United States is conducted on a level playing field by protecting competition

confiscation

unfair compensation

employment

-Congress has amended Title VII of the Civil Rights Act of 1964, extending protection against employment discrimination to Americans working for American companies, even when the employee is working in another nation. -Thus, the protections of Title VII extend across national boundaries, at least for U.S. workers employed by U.S. firms, regardless of the work location

Latin american free trade zones

-Central American Common Market:comprised of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. -MERCOSUS Common Market:Argentina, Brazil, Paraguay, and Uruguay. -Andean Common Market:Bolivia, Ecuador, Columbia, and Venezuela. And the Caribbean -Caribbean Community:Barbados, Belize, Dominica, Jamaica, Trinidad-Tobago, Grenada, St. Kitts-Nevus-Anguilla, St. Lucia, and St. Vincent

ISO

-Creates uniform standards to enhance trade. -163 member countries and many standardizing bodies. -Developed standards for credit cards, phone cards and "smart" cards so they can be used worldwide. -Developed quality standards. Latest is ISO 26000 to promote social responsibility.

grease payments

(facilitation payments) legal payments to speed up or ensure performance of normal government duties - A grease payment is a payment to a person in order to have him or her perform a task or render a service that is part of the person's normal job. The "grease" is intended to get the person to do the job more quickly or more efficiently than he or she might have otherwise

UNCITRAL

-attempts to provide harmonization of private international law in order to encourage and enhance international trade. UNCITRAL is actively involved in the development and enactment of U.N. Conventions dealing with international trade, such as the CISG and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards -involved in creating model laws and legal guides that are designed to serve as templates for the legislative bodies of nations that are addressing international trade issues.

Uniform Commercial Code

A collection of laws that governs various types of business transactions.

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. - that every sovereign state is bound to respect the independence of every other sovereign state and that the courts of one country will not sit in judgment on the acts of the government of another performed within its own borders -The Act of State Doctrine prohibits courts from judging the acts of a foreign government performed within its borders.

Letters of Credit

A letter issued by a bank allowing the bearer to withdraw a specific amount of money from the bank or its branches. -n international transactions, more difficult to check a buyer's financial status, harder to collect unpaid amounts, and more expensive or difficult to resell or reship rejected goods. -Buyers and sellers in an international transaction often use letters of credit to pay for goods, services, or technology.• (1) When a letter of credit is used, the contract between buyer and seller will require buyer to get a letter of credit from its bank. 2) Bank will pay seller the contract price upon presentation of the documents specified in the contract

National Courts

A private person can usually resort to settlement of a dispute with a foreign nation by seeking redress through the courts of that state. Private persons can sometimes obtain adequate relief in their own Hilton v. Guyot (1895): comity is "the recognition which one nation allows within its territory to the...acts of another nation, having due regard both to international duty and convenience, and to the rights of its own citizens, or other persons...state's judicial system -Comity is a matter of respect, goodwill, and courtesy that one nation gives to another, at least partly with the hope that the other nation will return the favor.

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico. -Seeks to eliminate tariffs on goods traded among member nations.- -Promotes greater movement of workers and investment capital among member nations.

Exports

All exports leaving the U.S. must be licensed to:-Protect national interest in time of short supply -Protect national security. -Further U.S. foreign policy interests.

Imports

All imports must pass through customs which usually involves payment of a tariff or duty. -"Dumping" is the selling of goods at less than their fair market value.-Increasing problem is the "dumping" of goods on foreign markets.

Objectives of the European Union

Citizenship, freedom, security and justice, economic and social progress; assertion of Europe's role in the world affairs -he movement of goods, people, services, and capital.

Cross Cultural negotiations

In the past a U.S. business could adopt a "take it or leave it" stance since alternative sources for many goods were limited. -International competition has now become heated. -Global companies must be very familiar with their trading partners' cultures to present products and services in appropriate marketing campaigns. -Language impacts cross-cultural negotiations and business dealings

Nationalization

Occurs when a foreign country converts private business into a government-owned enterprise.-International law requires state to have proper public purpose and provide just compensation.

Extraterritoriality

Right of foreigners to be protected by the laws of their own nation. -As U. S. businesses expand to foreign countries they have to obey the laws of the host country.

Online Dispute Resolution (ODR)

The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet. -NAFTA has provision for ODR in disputes between business and customer. -Likely to involve mediation.

African Free Trade Zone

These include the Economic Community of West African States, the Economic and Customs Union of Central Africa, and the East African Community -Economic Community of West African States. -Economic and Customs Union of Central Africa .-East African Community. -The African Economic Community, which has 51 signatories.

Foreign Corrupt Practices Act (FCPA)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions. -covers foreign corrupt practices and provides accounting standards that firms must follow in reporting payments made to foreign officials. -Liability for Individuals. -Liability of Entities. -Accounting Requirements .-OECD has developed anti-bribery convention

General Agreement on Tariffs and Trade (GATT)

a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions - which became the accepted framework for regulating international trade when the ITO was shelved. -promoted free trade by seeking to reduce tariffs and quotas between nations. -It promoted fair trade by defining such trade practices as unfair government subsidies of exports and dumping (selling goods below fair value on a foreign market -provided panels to resolve trade disputes

subsidary

a company controlled by another company; subordinate; secondary - A subsidiary may be wholly owned by the parent company, or the parent company may have partial ownership.

International Court of Justice

a court established to settle disputes between members of the United Nations -Limited value in resolving international business disputes; only nations have standing -A private person who has a grievance against a state other than his or her own must first secure the agreement of his or her own state to present the claim.

European Union (EU)

a free trade zone encompassing 27 European countries - the EU has its own legislative, executive, and judicial branches. The treaty also covers the free movement of workers, goods, and capital within the community -The EU is governed by the Council of Ministers, the European Commission, the European Parliament, and the Court of Justice Originally created by the Treaty of Rome. -Establish a common customs tariff for outside nations importing goods into EU .-Eliminate tariffs among members.

free trade zone

a region where a group of countries agrees to reduce or eliminate trade barriers -Created to facilitate and expedite commerce by forming Economic Unions .-Two most recognized Economic Unions are:•European Union (EU).

Uruguay Round

a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization -also raised non-goods-related issues, such as trade-related intellectual property rights, investment protection, services, and agricultural subsidies

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT) - international economic organization that is intended to provide leadership and coordination for international trade. -expanded coverage to not only include merchandise goods, but to also cover some trade in services and to provide protection for intellectual property

joint venture

an agreement between two or more companies to share a business project - "an association of two or more persons to carry out a single business enterprise for profit." In international business, joint ventures are viewed somewhat more broadly than that definition implies

SEC Whistleblower program

defines a bribe as "anything of value"9 given to a foreign official in an effort to obtain or retain business. Such payments are illegal, and it does not matter if the "thing of value" is given to the foreign official directly or through a third party

comity

courtesy; civility Technically, comity is "courtesy; respect..."In international law, comity is a custom of recognizing the legal decisions of courts in other nations. It is not international law so much as a public policy consideration. -As practiced in the U.S., American courts will recognize the judicial decisions of courts in other nations if those courts provide for due process. This is true even if the due process provided is not the same as due process would be in the U.S. -Comity is analogous to the Full Faith and Credit Clause of the U.S. Constitution.

Internationalization

entities cooperating across national boundaries -is permeating society at every level.

Expropriation

fair compensation

The United Nations Convention on Contracts for the international sale of goods (CISG)

provides a law of sales contracts between businesses in countries that have approved CISG As of 2013, 79 nations have approved CISG).

Foreign Trade Antitrust Improvements Act (FTAIA)

provides clarity on the extraterritorial reach of the Sherman Act; requires that the defendant's conduct have a direct, substantial, and reasonably foreseeable effect on domestic commerce -I is aimed at protecting the U.S. market from antitrust problems caused here, and attempts to exclude pure export activities from antitrust coverage

Going Global

providing services or products worldwide -Communication and transportation improvements. -Help buyers and sellers in different markets find one another. -Make doing business easier. -Technology has opened the global marketplace to businesses of all sizes.

Arbitration

settling a dispute by agreeing to accept the decision of an impartial outsider -For variety of reasons, a particular international dispute may not be appropriate for resolution in the ICJ or national courts. In that case, international arbitration might be the best course of action

sovereign immunity

the rule that a citizen cannot sue the government without the government's consent -A nation is immune from suit, either by individuals or by other countries, except where a nation has agreed to give up its sovereign immunity -which declared that U.S. courts would not recognize sovereign immunity when the sovereign engaged in commercial, rather than political, activities. -No sovereign immunity where a nation was carrying on commercial rather than political acts• -Act was amended to allow U.S. citizens to sue terrorist states for certain terrorist conduct.