International BLaw Summary Questions
and Answers 2024(100%Verified)
Chapter 1 - ANS-1. The three forms of international business, or methods of entering a
foreign market, are trade, the licensing of intellectual property, and foreign direct
investment.
2. Trade consists of importing and exporting, including trade in goods and services. 3.
Successful exporters make a long-term commitment to their foreign markets and
customers and undertake an export plan. Success also requires building interpersonal
relationships with foreign business associates and fostering an attitude of trust. 4.
Cross-border trade in services includes business services such as passenger fares,
shipping, package delivery, banking, insurance, securities brokerage, accounting,
management and engineering consulting, and other professional services. 5. Importing
should not be viewed as an isolated, one-time transaction. Most successful importers
have a "global sourcing" strategy.
and the U.S. Bureau of Customs and Border Protection.
The international divisions of major banks not only provide important financing but also
offer a range of specialized international banking and foreign ex- change services
necessary to international firms. Many international bankers possess a great wealth of
expertise and foreign contacts and can play an advisory role in international business.
6. Intellectual property rights can be transferred through a licensing agreement in return
for a royalty or other compensation arrangement. IPRs can be rendered worthless if
they are not protected and infringement occurs.
7. Foreign direct investment refers to the long-term ownership and operation or active
control of an ongoing business in a foreign "host" country with the expectation of
producing a profit.
8. Multinational corporations are firms with significant foreign direct investment assets.
They are increasingly "globalized," meaning that they have the ability to derive and
transfer capital resources worldwide and to operate facilities of production and penetrate
markets in more than one country, usually on a global scale. 9. While the developing
countries attract hundreds of billions of dollars in investments each year, the economic
and political climate in many developing countries still presents many obstacles to trade
and investment. 10. International business differs from domestic business because of
distance, currency, language, culture, national controls over trade and investment,
country risk, and differences in national laws and legal systems.
11. In international business there is no substitute for knowing your suppliers,
,customers, and partners, visiting their facilities, and building relationships
based on trust.
12. An important lesson of this chapter is that the
management of international business is the management of risk. By understanding the
legal environment of international business we are better prepared to evaluate, manage,
and reduce these risks.
Chapter 2 - ANS-1. International law includes public and private international law. Public
international law governs the conduct of nations with other nations or the conduct of
nations in their relationships with individuals. Private international law governs the rights
and responsibilities of private individuals or corporations operating in an international
envi- ronment, such as international sales contracts or shipping. International law relies
primarily on "soft" enforcement mechanisms: the force of public opinion, trade and
diplomatic sanctions, and the withholding of foreign aid. The ultimate sanction is war. 2.
Customary international law is derived primarily from the widespread and long-standing
practices of nations. International law also arises from agreement. A treaty is a legally
binding agreement between two or more nations that is recognized and given effect
under international law. A convention is a multilateral treaty on a topic of broad
international concern.
3. International business law is any law or regula- tion, whether derived from national or
interna- tional sources, that governs cross-border business transactions, the activities of
those doing business in foreign countries or subject to the jurisdiction of foreign courts,
or the resolution of interna- tional business disputes.
4. Uniformity and predictability in international business law are important to companies
that do international business.
5. Transnational business crimes are major pro- blems calling for global solutions.
Typical crimes include bribery and corruption, tax evasion, customs fraud, criminal
violations of export control laws, financial crimes, and criminal violations of
environmental laws, securities laws, and antitrust laws.
6. Jurisdiction means the power of a nation to create laws that proscribe conduct and to
act over individuals, corporations, or their property in the application or enforcement of
those laws. When used in reference to a court, it is the power of a court to act or to hear
a case—to adjudicate. There are five doctrines of international criminal jurisdiction:
territoriality, nationality, the protective principle, passive personality, and universality. 7.
Extraterritoriality refers to a nation's jurisdiction that extends beyond its territorial
borders.
8. The International Court of Justice hears cases brought by nations against other
nations. Individuals and private corporations are not parties to cases before the court.
The court has jurisdiction over all cases brought by nations under the UN Charter or
, involving treaties, conventions, international obligations, or ques- tions of
international law. Jurisdiction is not compulsory; each nation must agree to submit to
the court's jurisdiction.
9. Business ethics and social responsibility are important to the stakeholders of all
companies. But these can be vague concepts for firmsoperating in different parts of the
world. One solution, in addition to legal penalties, are voluntary codes of conduct
produced by interna- tional organizations and corporations. While some people can
argue their effectiveness, they do provide a common framework for manage- ment, and
they do focus the spotlight of world public opinion on the problem and its solutions. 10.
Comparative law refers to the study of differences in national laws and legal systems.
These differences cover the entire range of law—marriage and family law, business law,
torts, crimes, and more. There are also differences in legal procedures, the role of
legislation and case law, the function of judges, the conduct of trials, the use of legal
remedies, and punishments in criminal cases.
Chapter 3 - ANS-1. Alternate dispute resolution usually offers a faster, cheaper, and
more efficient alternative to liti- gation. Mediation is a voluntary, non-binding conciliation
process. Arbitration is a more for- malized process, resulting in a binding award that
courts in many countries will enforce. The parties must agree to arbitration, but once
they do, they cannot withdraw. Most commercial nations today have laws permitting
arbitration and recognizing arbitral awards.
2. Litigation is the final step in attempting to resolve a dispute. It is in use more
frequently in the United States than in virtually any other country. Many litigants from
foreign countries seek ways for American courts to hear their cases. American juries are
known for giving larger verdicts, and punitive damage awards are possible. 3.
Jurisdiction is the power of a court to hear and decide a case. In personam jurisdiction,
or "jurisdiction over the person," refers to the court's power over a certain individual or
corporation. No court can enter a judgment against an individual or corporate defendant
unless they have such jurisdiction. When a defendant is not physically present in the
state, a court can obtain jurisdiction only if the party has had sufficient minimum contacts
with the territory of the forum such that it is fair for the defendant. The Internet is leading
to new jurisdictional issues.
4. Jurisdiction is often confused with the concept of venue. Venue refers to the
geographical location of a court of competent jurisdiction where a case can be heard.
5. According to the legal doctrine of forum non conveniens, whenever a case can be
properly heard in the courts of more than one jurisdiction, it should be heard in the
jurisdiction that is most convenient.
6. The term conflict of laws refers to the rules by which courts determine which state or
country's laws will apply to a case and how to reconcile differences between laws. In
, breach of contract cases, in the absence of an agreement by the parties, the law of the
jurisdiction that has the most significant relationship to the transaction and the parties
usually governs the contracts. The law of the place where the injury or damage
occurred usually governs tort cases, although today many courts are adopting the
broader view that the law of the jurisdiction that has the most significant relationship to
the tort and to the parties should govern liability.
7. A forum selection clause is a provision in a contract that fixes in advance the
jurisdiction in which any disputes will be litigated. A choice of law clause is a contract
provision that stipulates which country or jurisdiction's law will apply in interpreting the
contract or enforcing its terms.
8. As a general rule, U.S. courts honor the judgments of foreign countries when the
requirements of comity
are satisfied and when the foreign judgment was rendered by an impartial tribunal in a
fashion that would not offend American notions of fundamental fairness and due
process of law.
9. Foreign courts often enforce judgments of U.S. courts on the basis of reciprocity and
comity in countries where the defendant or its property can be found. Some foreign
courts have been known to refuse to honor the judgments of U.S. courts where, in the
view of the foreign court, the amount of money awarded was excessive. 10.
Commercial disputes with foreign sovereigns present many difficulties including
barriers to the initiation of litigation. These barriers include sovereign immunity, comity,
the act of state doctrine, and the political question doctrine.
Chapter 4 - ANS-1. The U.N. Convention on Contracts for the Interna- tional Sale of
Goods (CISG) was ratified by the United States in 1988 and applies to commercial
contracts for the sale of goods between buyers and sellers located in different countries,
both of which have ratified the CISG. The CISG is not applicable to consumer contracts,
liability for injury or death caused by defective products, or the sale of services. 2.
Under the CISG, contracts for the sale of goods need not be in writing, although most
interna- tional business transactions are.
3. Evidence as to trade usages is admissible to interpret or fill in the gaps in a contract.
It may include those usages derived from past dealings or those that the parties knew
of, should have known of, or are regularly observed in their countries in their type of
business.
4. An acceptance may take the form of a statement or conduct by the offeree that
indicates the offeree's intention to be bound to the contract. An offeree may accept by
"dispatching the goods or payment of the price, without notice to the offeror," provided
that the parties have established this as a practice or it is routinely accepted in the
trade.
and Answers 2024(100%Verified)
Chapter 1 - ANS-1. The three forms of international business, or methods of entering a
foreign market, are trade, the licensing of intellectual property, and foreign direct
investment.
2. Trade consists of importing and exporting, including trade in goods and services. 3.
Successful exporters make a long-term commitment to their foreign markets and
customers and undertake an export plan. Success also requires building interpersonal
relationships with foreign business associates and fostering an attitude of trust. 4.
Cross-border trade in services includes business services such as passenger fares,
shipping, package delivery, banking, insurance, securities brokerage, accounting,
management and engineering consulting, and other professional services. 5. Importing
should not be viewed as an isolated, one-time transaction. Most successful importers
have a "global sourcing" strategy.
and the U.S. Bureau of Customs and Border Protection.
The international divisions of major banks not only provide important financing but also
offer a range of specialized international banking and foreign ex- change services
necessary to international firms. Many international bankers possess a great wealth of
expertise and foreign contacts and can play an advisory role in international business.
6. Intellectual property rights can be transferred through a licensing agreement in return
for a royalty or other compensation arrangement. IPRs can be rendered worthless if
they are not protected and infringement occurs.
7. Foreign direct investment refers to the long-term ownership and operation or active
control of an ongoing business in a foreign "host" country with the expectation of
producing a profit.
8. Multinational corporations are firms with significant foreign direct investment assets.
They are increasingly "globalized," meaning that they have the ability to derive and
transfer capital resources worldwide and to operate facilities of production and penetrate
markets in more than one country, usually on a global scale. 9. While the developing
countries attract hundreds of billions of dollars in investments each year, the economic
and political climate in many developing countries still presents many obstacles to trade
and investment. 10. International business differs from domestic business because of
distance, currency, language, culture, national controls over trade and investment,
country risk, and differences in national laws and legal systems.
11. In international business there is no substitute for knowing your suppliers,
,customers, and partners, visiting their facilities, and building relationships
based on trust.
12. An important lesson of this chapter is that the
management of international business is the management of risk. By understanding the
legal environment of international business we are better prepared to evaluate, manage,
and reduce these risks.
Chapter 2 - ANS-1. International law includes public and private international law. Public
international law governs the conduct of nations with other nations or the conduct of
nations in their relationships with individuals. Private international law governs the rights
and responsibilities of private individuals or corporations operating in an international
envi- ronment, such as international sales contracts or shipping. International law relies
primarily on "soft" enforcement mechanisms: the force of public opinion, trade and
diplomatic sanctions, and the withholding of foreign aid. The ultimate sanction is war. 2.
Customary international law is derived primarily from the widespread and long-standing
practices of nations. International law also arises from agreement. A treaty is a legally
binding agreement between two or more nations that is recognized and given effect
under international law. A convention is a multilateral treaty on a topic of broad
international concern.
3. International business law is any law or regula- tion, whether derived from national or
interna- tional sources, that governs cross-border business transactions, the activities of
those doing business in foreign countries or subject to the jurisdiction of foreign courts,
or the resolution of interna- tional business disputes.
4. Uniformity and predictability in international business law are important to companies
that do international business.
5. Transnational business crimes are major pro- blems calling for global solutions.
Typical crimes include bribery and corruption, tax evasion, customs fraud, criminal
violations of export control laws, financial crimes, and criminal violations of
environmental laws, securities laws, and antitrust laws.
6. Jurisdiction means the power of a nation to create laws that proscribe conduct and to
act over individuals, corporations, or their property in the application or enforcement of
those laws. When used in reference to a court, it is the power of a court to act or to hear
a case—to adjudicate. There are five doctrines of international criminal jurisdiction:
territoriality, nationality, the protective principle, passive personality, and universality. 7.
Extraterritoriality refers to a nation's jurisdiction that extends beyond its territorial
borders.
8. The International Court of Justice hears cases brought by nations against other
nations. Individuals and private corporations are not parties to cases before the court.
The court has jurisdiction over all cases brought by nations under the UN Charter or
, involving treaties, conventions, international obligations, or ques- tions of
international law. Jurisdiction is not compulsory; each nation must agree to submit to
the court's jurisdiction.
9. Business ethics and social responsibility are important to the stakeholders of all
companies. But these can be vague concepts for firmsoperating in different parts of the
world. One solution, in addition to legal penalties, are voluntary codes of conduct
produced by interna- tional organizations and corporations. While some people can
argue their effectiveness, they do provide a common framework for manage- ment, and
they do focus the spotlight of world public opinion on the problem and its solutions. 10.
Comparative law refers to the study of differences in national laws and legal systems.
These differences cover the entire range of law—marriage and family law, business law,
torts, crimes, and more. There are also differences in legal procedures, the role of
legislation and case law, the function of judges, the conduct of trials, the use of legal
remedies, and punishments in criminal cases.
Chapter 3 - ANS-1. Alternate dispute resolution usually offers a faster, cheaper, and
more efficient alternative to liti- gation. Mediation is a voluntary, non-binding conciliation
process. Arbitration is a more for- malized process, resulting in a binding award that
courts in many countries will enforce. The parties must agree to arbitration, but once
they do, they cannot withdraw. Most commercial nations today have laws permitting
arbitration and recognizing arbitral awards.
2. Litigation is the final step in attempting to resolve a dispute. It is in use more
frequently in the United States than in virtually any other country. Many litigants from
foreign countries seek ways for American courts to hear their cases. American juries are
known for giving larger verdicts, and punitive damage awards are possible. 3.
Jurisdiction is the power of a court to hear and decide a case. In personam jurisdiction,
or "jurisdiction over the person," refers to the court's power over a certain individual or
corporation. No court can enter a judgment against an individual or corporate defendant
unless they have such jurisdiction. When a defendant is not physically present in the
state, a court can obtain jurisdiction only if the party has had sufficient minimum contacts
with the territory of the forum such that it is fair for the defendant. The Internet is leading
to new jurisdictional issues.
4. Jurisdiction is often confused with the concept of venue. Venue refers to the
geographical location of a court of competent jurisdiction where a case can be heard.
5. According to the legal doctrine of forum non conveniens, whenever a case can be
properly heard in the courts of more than one jurisdiction, it should be heard in the
jurisdiction that is most convenient.
6. The term conflict of laws refers to the rules by which courts determine which state or
country's laws will apply to a case and how to reconcile differences between laws. In
, breach of contract cases, in the absence of an agreement by the parties, the law of the
jurisdiction that has the most significant relationship to the transaction and the parties
usually governs the contracts. The law of the place where the injury or damage
occurred usually governs tort cases, although today many courts are adopting the
broader view that the law of the jurisdiction that has the most significant relationship to
the tort and to the parties should govern liability.
7. A forum selection clause is a provision in a contract that fixes in advance the
jurisdiction in which any disputes will be litigated. A choice of law clause is a contract
provision that stipulates which country or jurisdiction's law will apply in interpreting the
contract or enforcing its terms.
8. As a general rule, U.S. courts honor the judgments of foreign countries when the
requirements of comity
are satisfied and when the foreign judgment was rendered by an impartial tribunal in a
fashion that would not offend American notions of fundamental fairness and due
process of law.
9. Foreign courts often enforce judgments of U.S. courts on the basis of reciprocity and
comity in countries where the defendant or its property can be found. Some foreign
courts have been known to refuse to honor the judgments of U.S. courts where, in the
view of the foreign court, the amount of money awarded was excessive. 10.
Commercial disputes with foreign sovereigns present many difficulties including
barriers to the initiation of litigation. These barriers include sovereign immunity, comity,
the act of state doctrine, and the political question doctrine.
Chapter 4 - ANS-1. The U.N. Convention on Contracts for the Interna- tional Sale of
Goods (CISG) was ratified by the United States in 1988 and applies to commercial
contracts for the sale of goods between buyers and sellers located in different countries,
both of which have ratified the CISG. The CISG is not applicable to consumer contracts,
liability for injury or death caused by defective products, or the sale of services. 2.
Under the CISG, contracts for the sale of goods need not be in writing, although most
interna- tional business transactions are.
3. Evidence as to trade usages is admissible to interpret or fill in the gaps in a contract.
It may include those usages derived from past dealings or those that the parties knew
of, should have known of, or are regularly observed in their countries in their type of
business.
4. An acceptance may take the form of a statement or conduct by the offeree that
indicates the offeree's intention to be bound to the contract. An offeree may accept by
"dispatching the goods or payment of the price, without notice to the offeror," provided
that the parties have established this as a practice or it is routinely accepted in the
trade.
