Test 1- chapter 5 Flashcards

0
Q

Confiscation

A

occurs when no compensation is provided

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1
Q

Expropriation

A

Governmental action to dispossess a foereign company or investor; Compensation should be provided in a prompt, effective and adequate manner

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2
Q

nationalization

A

a government takes control of some or all of the enterprises in an entire industry

  • acceptable when:
  • satisfies public purpose
  • includes compensation
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3
Q

Creeping of expropriation

A

limits economic activities of foreign firms
May include:
-Limites on repatriation of profits, dividends, or royalties
-Technical assistance fees
-increased local content laws

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4
Q

Common vs Civil Law

A

The napoleonic code of 1804 drew on roman legal systems an is the basis for continental european law today. Code law is also known as civil law.
Common Law:
-companies are legally incorporated by state authority
-Code law is used in only a few areas: The US uniform Commercial Code

Civil Law:

  • Legal system reflects the structural concepts and principles of the Roman Empire
  • Companies are formed by contract between two or more parties who are fully liable for the actions of the company
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5
Q

Anti Trust Issues

A
  • Law are designed to combat restrictive business practices and to encourage competition
  • enforced by FTC, Fair Trade, and Euro Commission
  • Sherman act of 1890
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6
Q

Bribery and Corruption

A

Foreign Corrupt Practices Act:

  • Requires publicly held companies to institutes internal accounting controls that would record all transaction
  • provides payments to third parties
  • its a crime for US corp to bribe foreign officials

Omnibus Trade and Competitiveness Act:
-allows for grease payments to cut red tape

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7
Q

Arbitration

A

Settles disputes outside of court

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