CH24 International Law and Transactions

Question 1

Accession

Answer 1

a process whereby a nation that was not an original party to a treaty can elect to participate in the treaty at a later time

Question 2

Act-of-state doctrine

Answer 2

According to the act of state doctrine, national courts must refrain from prosecuting the validity of official acts carried out by a foreign state within its own territory, except if it commits violations of international norms with broad consensus of international society, such as, for example, a case of genocide.

Question 3

Ad hoc arbitration

Answer 3

Ad hoc arbitration is a proceeding that is not administered by others and requires the parties to make their own arrangements for selection of arbitrators and for designation of rules, applicable law, procedures and administrative support. Provided the parties approach the arbitration in a spirit of cooperation, ad hoc proceedings can be more flexible, cheaper and faster than an administered proceeding. The absence of administrative fees alone make this a popular choice. In international dispute resolution, arbitration in which internationally accepted rules (e.g. those adopted by the UN on International Trade Law) may be used in conjunction with the parties’ own methods.

Question 4

arbitrator

Answer 4

an independent person or body officially appointed to settle a dispute

Question 5

ad valorem tariff

Answer 5

ad valorem means “according to value.”

the tariff paid by the importer is calculated as a percentage of the value of the imported merchandise

Question 6

arbitration

Answer 6

the resolution of a dispute by a neutral third party.

Question 7

Beneficiary

Answer 7

the recipient

Question 8

Bound tariff

Answer 8

A WTO principle stating that once a tariff is reduced, it may not be raised again

Question 9

Codification

Answer 9

the process by which existing common law principles are restated and laid down in a statute

Question 10

comity

Answer 10

a principle whereby a court will enforce another country’s judgments under certain conditions

Question 11

conciliation

Answer 11

settlement out of court, usually with the assistance of a neutral thrid-party

Question 12

confiscation

Answer 12

a host country government’s taking over of foreign-owned assets without just compensation

Question 13

countertrade

Answer 13

Countertrade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in countertrade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used.
This type of international trade is more common in developing countries with limited foreign exchange or credit facilities.
Book:
A practice whereby a foreign investor uses its local currency profits to purchase local products for sale abroad

Question 14

hard currency

Answer 14

currency that is not likely to depreciate suddenly or to fluctuate greatly in value.
e.g.
The U.S. dollar (USD)
The euro (EUR)

Question 15

countervailing duty

Answer 15

A duty levied on an imported good to offset subsidies to producers or exporters of that good in the exporting country

Question 16

Doctrine

Answer 16

a stated principle of government policy, mainly in foreign or military affairs.

Question 17

embargo

Answer 17

An embargo is a special kind of sanction that is declared by a country or, more frequently, a group of countries against all commerce of another country. As with other sanctions, the goal is to force the embargoed country to change its behavior or policies. An embargo often isolates the affected country and is intended to create economic suffering.

Question 18

Expropriation

Answer 18

a government’s taking of foreign-owned assets with just compensation

Question 19

extraterritoriality

Answer 19

a practice whereby countries assert the right to regulate activities that occur beyond their border

Question 20

forum non conveniens

Answer 20

a doctrine whereby a suit is dismissed and transferred to a more convenient court, likely due to location of the witnesses and plaintiff/defendant.

Question 21

suit

Answer 21

generic term for any filing of a complaint asking for legal redress by judicial action, often called a “lawsuit”

Question 22

generalized system of preferences (GSP)

Answer 22

U.S. trade preference programs such as the Generalized System of Preferences (GSP) provide opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty. GSP promotes economic development by eliminating duties on thousands of products when imported from one of 119 designated beneficiary countries and territories. A tariff program that exempts countries from certain WTO restrictions, allowing lowering of tariffs to benefit developing countries, while not lowering tariffs for developed countries.

Question 23

Gross-up clause

Answer 23

The provision will usually indicate that if there is a mandatory withholding or deduction by operation of law (usually with respect to tax), then the paying party shall “gross up” the payment so that the receiving party receives the same net amount.

Question 24

Inversion

Answer 24

A process by which a firm in Country A merges with a non-Country A entity, allowing them to change their tax domicile from the Country A to the other country

Question 25

Most favored nation (MFN) treatment

Answer 25

A principle that each member country of the WTO must provide to all other WTO members tariff treatment no less favorable than it provides to any other country.

Question 26

National treatment

Answer 26

A WTO principle that members must not discriminate against imported products in favor of domestically produced products

Question 27

Ratification

Answer 27

The action of signing or giving formal consent to a treaty, contract, or agreement, making it officially valid

Question 28

Repatriate

Answer 28

To return profits earned in a host country to the firm’s home country

Question 29

Sovereign immunity

Answer 29

A doctrine that prevents the courts of one country from hearing a suit against the government of another country

Question 30

Supranational law

Answer 30

a form of international law under which nations submit their decision-making authority to a common organization or institution such as the WTO or the United Nations Security Council