5.1

Chapter 5

International Business Law

© 2003 by West Legal Studies in Business/A Division of Thomson Learning

5.2

Introduction

International business lawInternational business law examines laws affecting international business transactions

International tradeInternational trade occurs when goods or services produced in one country are purchased by firms or individuals located outside the country of origin

International investmentInternational investment occurs when individuals or firms purchase an interest in foreign firms

5.3

Sources of International Law

National laws Treaties

Practices and customs

Regional organizations

Internationalorganizations

5.4Comparison of National Legal

Systems

Judicial decisionsJudicial

decisions

Primary source of law in countries with common law legal system

Primary source of law in countries with common law legal system

Civil lawor code

Civil lawor code

Limits role of courts and greater importance on administration interpretation

Limits role of courts and greater importance on administration interpretation

5.5

Stages of Regional Integration

Free trade area

Customs union

Common market

Economic union

5.6

International Organizations

United Nations (UN)

World Trade Organization (WTO)

World Intellectual Property Organization (WIPO)

International Monetary Fund

World Bank (WB)

5.7

Trade Related Intellectual Property

Rights Agreement

Main features of the TRIPS agreement

Establish minimum standards

Provide for enforcement of intellectual property rights

Send disputes to the WTO’s dispute settlement provisions

5.8

Laws Affecting Imports

Laws regulating exports

Laws encouraging exports

Laws affecting imports

5.9

International Licensing

Use of licensing

Terms of a licensing agreement

Taxation of licenses

Franchising

5.10Laws Affecting International Investments

Types of foreign investments

Joint ventures

Mergers

National laws of different countries

5.11

Legal Aspects of Direct Investments

Investment laws and policies Forms of business organization Exchange controls Tax considerations Labor laws Safety of investment Antitrust laws Intellectual property protection