BSN 107

1. ESSENTIALS OF THE LEGAL
ENVIRONMENT TODAY, 5E
ROGER LEROY MILLER
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

2. CHAPTER 10
INTERNATIONAL LAW IN A
GLOBAL ECONOMY
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

3. LEARNING OBJECTIVES
1. What is the principle of comity, and why
do courts deciding disputes involving a
foreign law or judicial decree apply this
principle?
2. What is the act of state doctrine? In what
circumstances is this doctrine applied?
3. Under the Foreign Sovereign Immunities
Act, in what situations is a foreign state
subject to the jurisdiction of U.S. courts?
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

4. LEARNING OBJECTIVES (CONT’D)
4. What are three clauses commonly
included in international business
contracts?
5. What federal law allows U.S. citizens, as
well as citizens of foreign nations, to file
civil actions in U.S. courts for torts that were
committed overseas?
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

5. INTERNATIONAL LAW
• If a nation violates international law
and persuasive tactics fail, other
countries have no recourse except
coercive actions.
• Sources of International Law
• International customs
• Treaties and international agreements
• International organizations
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

6. INTERNATIONAL LAW
• International Principles and Doctrines
• The principle of comity – one nation will
defer to and give effect to the laws of
another country, as long as they are
consistent with the law of the
accommodating nation
• Nations comply because the legal
procedures are compatible
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-1

7. INTERNATIONAL LAW
• The act of state doctrine provides that the
judicial branch on one country will not
examine the validity of public acts
committed by a recognized foreign
government within its own territory.
• When a foreign government takes private property
• Doctrine may immunize a foreign government’s actions
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-2

8. INTERNATIONAL LAW
• Foreign Sovereign Immunities Act (FSIA)
• A foreign state is not immune from the
jurisdiction of U.S. courts when the foreign
state:
• Has waived its immunity either explicitly or by implication
• Has engaged in commercial activity within the U.S. or in
commercial activity outside the U.S. that has “a direct
effect in the United States”
• Has committed a tort in the U.S. or has violated certain
international laws
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-3

9. DOING BUSINESS
INTERNATIONALLY
• Exporting
• Can take 2 forms: direct and indirect
• Distributorships
• The National Export Initiative (NEI) – effort
to increase U.S. exports
• Export Promotion Cabinet
• Export-Import Bank of the United States increased
financing available to small and medium-sized businesses
by 50%
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

10. DOING BUSINESS
INTERNATIONALLY
• Manufacturing Abroad
• Alternative to direct or indirect exporting
• Licensing
• Subsidiaries
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

11. REGULATION OF SPECIFIC BUSINESS
ACTIVITIES
• Nations impose laws to restrict or
facilitate international business.
• Investment Protections
• Export Controls
1. Export quotas
2. Restrictions on technology exports
3. Incentives and subsidies
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

12. REGULATION OF SPECIFIC BUSINESS
ACTIVITIES
• All nations have restrictions on imports.
• Import Controls
• Prohibited goods
• Quotas and tariffs
• Political factors
• Antidumping duties
• International Trade Commission (ITC)
• International Trade Administration (ITA)
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

13. REGULATION OF SPECIFIC BUSINESS
ACTIVITIES
• Minimizing Trade Barriers
• The European Union (EU)
• The North American Free Trade Agreement
(NAFTA)
• The Central America-Dominican Republic-
United States Free Trade Agreement
(CAFTA-DR)
• The Republic of Korea-United States Free
Trade Agreement (KORUS FTA)
• Other free trade agreements
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

14. INTERNATIONAL CONTRACTS
• Contract Clauses
• Choice-of-language clause
• Forum-selection clause
• Choice-of-law clause
• Force majeure clause
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-4

15. INTERNATIONAL CONTRACTS
• Civil Dispute Resolution
• United Nations Convention on the
Recognition and Enforcement of Foreign
Arbitral Awards (New York Convention)
• Court will compel parties to arbitrate if four
conditions are met.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

16. PAYMENT METHODS
• Because international contracts
involve greater financial risks, care
should be taken in drafting contracts
• Monetary Systems
• Letters of Credit
• Parties to a letter of credit
• The value of a letter of credit
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

17. EXHIBIT 10.1
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

18. U.S. LAWS IN A GLOBAL CONTEXT
• Extraterritorial application of certain U.S.
laws
• U.S. Antitrust Laws
• Sherman Act
• International Tort Claims
• Alien Tort Claims Act (ATCA)
• Antidiscrimination Laws
• Age Discrimination in Employment Act
• Americans with Disabilities Act
• Title VII of the Civil Rights Act
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-5