Final Flashcards
What deals with the legal basis of global commercial relations?
-International Business Law
What are the sources of international business law?
- rulings from international tribunals
- customs
- treaties
- conventions
- trade agreements
Multinational corporations and enterprises have a limited presence in foreign markets through what?
- licensing intellectual property
- exporting and importing
- franchising
The regulation of multinationals is mostly a matter of what?
-domestic law
Generally, home states regulate what?
-the parent firm
Generally, the host states regulate what?
-foreign subsidiaries
Host states may also regulate the parent companies through a legal device called what?
-piercing the corporate veil (PCV)
Business that operate internationally face issues of what?
-regulations and licensing about imports and exports
Sometimes nations may require a foreign investor to accept a what?
-calvo clause
What is a calvo clause?
-an agreement that a business operating in a foreign country will not ask its home state to intervene in a dispute with the host state
What objections may states raise to complaints initiated against them?
- lack of standing
- lack of nationality
- lack of a genuine link to the sponsoring state
- failure to exhaust remedies
- Laches: negligent delay in bringing a claim
- dirty hands
A state that has harmed an alien may be required to pay what?
- restitution in kind
- compensatory damages
The economic interests of foreign investors may be harmed non-commercial risks, such as what?
-social and political upheavals
Non-commercial risks are usually addressed during what between who?
-ad hoc negotiations between the foreign investor and a host country
What are sources of insurance?
- private insurers
- governments and intergovernmental agencies
Insurance products include what?
- international property insurance
- international casualty insurance
- coverage for overseas employees
- special coverages (Kidnap, ransom, political, etc.)
To operate globally, large business organizations have modified their structures to do what?
- shares risks
- take advantage of the economies of scale
What is a non-multinational enterprise?
-a domestic firm that operates internationally through independent foreign agents
What is a national multinational enterprise?
-consists of one firm based in a country that acts as the parent company to operations in other countries through branches and subsidiaries
What is an international multinational enterprise?
-it has two or more parent companies in different countries. Possibly because of merges between parents
What are examples of International multinational enterprise?
-Unilever, Shell group
Where do the standards for ethical and legal behavior for multinationals come from?
- home governments
- international organizations
Section 1 of the Sherman anti-trust act forbids what?
-combinations and conspiracies in restraint of interstate and international trade
Section 2 of the Sherman anti-trust act forbids what?
monopolies and attempts to monopolize interstate and international trade