Chapter 44 - International Law

Question 1

Treaty

Answer 1

• A written agreement between 2 or more countries relating to particular issues.
• U.S. Senate must approve such treaties by 2/3 vote.

Question 2

NAFTA

Answer 2

• North American Free Trade Agreement

- Increased cooperation among the countries on cross-border transactions.

Question 3

CISG

Answer 3

• Convention of International Sale of Goods.

Question 4

International Court of Justice

Answer 4

• Court created by United Nations

- If dispute between 2 countries, they go to this court.

Question 5

Medellin v. Texas

Answer 5

• Mexican in US commits a murder in Texas.
• Texas gives death penalty.
• Goes to International Court of Justice who rules that TX couldn’t do that.
• S.C. said that states aren’t bound by this court.

Question 6

Principle of Comity

Answer 6

• Other countries need to respect and enforce other countries court’s decisions.

Question 7

International Organizations

Answer 7

• United Nations
• To promote peace
• May “sanction” countries that have leaders acting contrary to rules.

Question 8

World Trade Organization

Answer 8

• Assist countries in removing trade barriers and to help countries respect business transactions.

Question 9

Doing Business Internationally

Answer 9

• “Choice of Law” Contract

- Countries may impose a quota limiting good that can be imported, tariffs on goods, and anti-dumping laws.

Question 10

Income Tax Internationally

Answer 10

• If income could be taxed twice, the U.S. allows a tax credit for the amount of income tax paid to the foreign country.

Question 11

Income Tax - Deferral Privilege

Answer 11

• If a U.S. Corp. forms a foreign subsidiary corp., it typically is not taxed until that income is repatriated to the U.S. through dividends or other payments.