Chapter 16 - International Ethics and Law Flashcards
World Trade Organization (WTO)
World Trade Organization (WTO):
one of its fundamental principles is the reduction of cross-national barriers to trade
Globalization
Globalization:
the breaking down of national boundaries and rules to allow free interchange around the world of people, businesses, goods, services, investments, communications and ideas
Three barriers to trade
Three barriers to trade:
- Tariffs
- Taxes
- Artificially inflated or deflated currencies
Comity
Comity:
idea that countries should abide by international custom, treaties, etc., because it is the civil way to operate
Convention of Contracts for International Sale of Goods (CISG)
Convention of Contracts for International Sale of Goods (CISG): provides uniform rules governing contracts for the sale of goods between parties of different signatory countries. The CISG governs issues such as the form and interpretation of contracts
Most Favored Nation Status
Most Favored Nation Status:
WTO members get treatment by host country no less favorable than that given to suppliers from any other country, whether or not the other country is a member of WTO
Two government defenses to violations of international law
Two government defenses to violations of international law:
- Act of State Doctrine: nation has control over what happens inside its own country
2.Doctrine of Sovereign Immunity: king can do no wrong. Foreign countries cannot be sued in American court, absent certain special circumstances (Foreign Sovereign Immunities Act):
–consent; The foreign country has waived its immunity
–commercial activity by foreign country directly affecting U.S.
–personal injuries b/c of torture, aircraft sabotage, hostage taking, provision of support for such acts (Lockerbie – suit against Libya)
Types of responsibility a nation has under international ethics
Types of responsibility a nation has under international ethics:
- Social Responsibility to Host Country
- Social Responsibility to Home Country
- Foreign Corrupt Practices Act (FCPA): no bribes
- Social Responsibility to Humanity
Types of operations Multinational Enterprises may have
Types of operations Multinational Enterprises may have:
1. Direct Contract: Firm in one nation has contract with firm or individual in another
- Foreign Representation: Sale/Do business through a distributor, agent or other representative in foreign country
- Joint Venture: More than one entity enters agreement together for a finite project
- Branch Office or Subsidiary: Extension of a corporation in a foreign country
- Licensing: Only want to get your product or name into a foreign market
- Franchising: Franchisor and Franchisee enter into multiple licensing agreements
Foreign Corrupt Practices Act (FCPA)
Foreign Corrupt Practices Act (FCPA):
No bribes
Three sources of international public law
Three sources of international public law:
- Treaties
- Conventions
- International Customs
How custom comes to exist
How custom comes to exist:
a. consistent repetition with
b. recognition by nations that it is binding
Trademark
Trademark: protects identification of a product (name, packaging, logo, etc.)
Patent
Patent: a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.
Copyright
Copyright: the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.
