Flashcards in Ch 12 Class Notes Deck (36)
How many sovereign nations existA.
Gives non citizens of US right to sue
4 main international risks
1 property protection
2 foreign regulation
3 different cultures
4 Foreign corrupt practices act
Foreign Corrupt Practices Act (1977)
Illegal to pay bribes to foreign officials with discretionary
Ok to make grease payments to low level government
Officials for routine government action
Government seizure of foreign owned property
2 types of nationalization
Confiscation, 2) how can you mitigate property bring confiscated?
2) see protections you have in country prior to purchase
By getting advice from trusted lawyers
Treaty where member nations give power to United Nations
power to invoke sanctions and keep peace
3 major international principles/doctrines
2 act of state
3 sovereign immunity
One country gives effect to laws and judgements of other
Act of state
Judge in 1 country won't strike down official act of another
Can't sue government, king, country
Foreign sovereign immunity act 1976
Provides exceptions to sovereign immunity rule
Can sue country over commercial actions
A US commercial ship shipping commercial goods is seized by Somali Government. What is the legal issue? Is there a basis to sue?
Issue: sovereign immunity
Can sue in US according to foreign sovereign immunity
Act because commercial transaction
Name 5 major international organizations
3 World Bank
4 World Trade Organization
5 European Union
Promotes orderly and stable foreign exchange rates
Makes loans to developing countries
World Trade Organization
Decision maker of global trade agreements
Promotes free trade
What company was behind the US lawsuit against the EU for banning genetically modified food?
What was the outcome/what organization decided the case?
WTO decided case in favor of Monsanto on technical
How many nations does the EU consist of, and what is the purpose?
3 major international trade agreements?
1 Contract for International Sale of Goods (CISG)
3 CAFTA - DR
Contract for international Sale of Goods (CISG)
Like UCC, but applies to international sales
More lenient than US contract laws because sales don't need
To be in writing
North America Free Trade agreement btw US, Canada
CAFTA - DR
Central America and dominican republic and US
Similar to NAFTA
How can tariffs be used to protect the economy?
Protect jobs and exports
What advantages do we have in the US for tariff and trade remedies?
Flexibility, access to resources, technology (US is more
Trade Barriers: global trend
Trend is toward opening up trade barriers
Name 6 key international contract terms
1 choice of language
2 place of trial (forum)
3 choice of law
4 choice of currency
5 force majeure clause (disasters)
Arbitration clause (new York convention)
Force majeure clause
Frees parties from contract when extraordinary event
Letter of credit
Assurance to get goods purchased internationally
US Laws: Discrimination
US laws apply here to foreign companies
US laws don't apply abroad to US companies where they
Conflict with foreign law
Alien Tort Claims Act (1789)
US courts have jurisdiction over any civil action by an
Alien for tort committed in violation of the law of nations
Or US treaty
XYZ is a US firm that makes communication software. The company recently learned that one of manufacturing firms it supplies is exporting insisted goods where US goods are prohibited.
Does XYZ have moral or legal responsibility in this case?
How should XYZ protect themselves under these circumstances?
Moral and legal responsibility to cease doing business with
Protect itself by making report to US government to
Get out of situation
5 ways to reduce risk selling commercial products in a new foreign country like Russia.
1 partner with trusted experienced company in area (highest
2 joint venture
3 wholly owned subsidiary
5 exporting (lowest risk)