Actual 13 Information

Front 1

Name the two sources of international law.

Back 1

Public International Law and Private International law.

Front 2

Define Public International Law.

Back 2

examines relationships between nations and uses its rules that are binding on all countries in the international community

Front 3

Define private international law.

Back 3

business managers are primarily concerned with this source of international law)

- examines relationships created by commercial transactions and utilizes international agreements and the individual laws of nations to resolve business disputes.
- Refers to the laws of individual nations and the multilateral agreements developed between nations

Front 4

What is the WTO?

Back 4

is an umbrella organization designed to regulate and promote international trade

• Eliminates tariffs. Goods can flow freely between the countries.

• The WTO is an international organization which, as its primary purpose, seeks to resolve trade disputes between member nations.

Front 5

What is GATT?

Back 5

was created in 1948 and originally signed by 23 countries after WWII as a way of opening up trade and ending the protection of domestic industries

Front 6

True or False? • The WTO administers the GATT but does not have the authority to regulate world trade in any manner it desires.

Back 6

True; • The WTO administers the GATT but does not have the authority to regulate world trade in any manner it desires.

Front 7

Name the three key features of GATT principles.

NEN

Back 7

1. Nondiscrimination (treating all member countries equally with respect to trade); all countries can participate equally with regards to trade

2. National Treatment (countries not favoring their own domestic products over imported products)

3. Elimination of trade barriers (reducing tariffs and other restrictions in foreign products) getting rid of tariffs

Front 8

What is TRIPS?

Back 8

Trade-Related Aspects of Intellectual Property Rights (includes trade in counterfeit goods)

“TRIPS” is designed to protect intellectual property rights for WTO countries.

Front 9

What does trips do?

Back 9

discusses the applicability of GATT principles and those of relevant international property agreements in an effort to strengthen the protection of intellectual property in the international sphere.

Front 10

True or False: WTO cannot resolve international trade disputes and does not have dispute resolution.

Back 10

False; WTO can resolve international trade disputes

- Problems with compliance.
• If nation does not comply with a WTO ruling, the organization has the power to impose sanctions.
o Compliance by the most powerful trading nations is necessary to give the WTO credibility.

Front 11

What are some critiques of GATT and the WTO?

Back 11

* Lack of emphasis on human rights, environmental and labor issues.

* Tensions between developed and developing countries,
esp. re: cutting tariffs
• WTO is the only global international trade organization dealing with the rules of trade between nations.
• Supposed to protect intellectual property.
o Real issue is enforcement.

Front 12

Define Expropriation

Back 12

the seizure of foreign-owned property by a government
Note: owners are supposed to be compensated; if not, considered confiscation

Front 13

Define Nationalization

Back 13

when the expropriating government assumes ownership & operation of the property or entity

Front 14

True or False: It is customary for international law to recognize the right of governments to expropriate the property of foreigners only when accompanied by “prompt, adequate, and effective compensation.”

Back 14

True; Accepted international standard requires full compensation to the investor including fair market value as a going concern.

Front 15

Define Export Controls

Back 15

are defined as action taken on a national and multilateral basis to prevent the exportation of controlled goods and technology to certain locations

• Another risk involved in doing business abroad is export controls placed on the sale of strategic products and technology abroad.

(in regards to military and dual-use technology)

• Participating nations seek, through their national policies, to ensure that transfer of conventional arms and strategic goods and technologies do not destabilize regional and international security.
• Prevent terrorist groups and individuals from acquiring arms and strategic goods and technologies.
• Significant criminal and administrative sanctions may be imposed upon corporations and individuals convicted of violating the law.

Front 16

What is the FCPA?

Back 16

Foreign Corrupt Practices Act (FCPA)

Front 17

What does the FCPA do?

Back 17

- Law is designed to stop bribery of foreign officials whose duties are not essentially “ministerial or clerical” by U.S. companies and citizens for the purpose of obtaining business

• If its private than its another thing. If your public, you are not allowed to bribe foreign officials.

Front 18

What are the two principal requirements of the FCPA?

Back 18

1- Financial records and accounts must be kept “which, in reasonable detail fairly and accurately reflect the transactions and disposition of assets” of the business

2- The business must “devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances” that transactions are being carried out in accordance with management’s authorization

Front 19

True or False: Payments through intermediaries, “third parties, “local agents,” are permitted when a person knows that the payment or a portion will directly or indirectly go to a public official.

Back 19

False. These payments are prohibited.

Front 20

Name two types of payments that are permitted under FCPA

Back 20

• Grease payments – getting things through customs. Getting a permit or license which could violate a local national law.
• Travel expenses for a foreign official. Not allowed: bringing children, family, and extra unnecessary expenses.

Front 21

What are criminal penalties for violating FCPA

Back 21

- $2 million for companies
- $ 100,000 fines for individuals and/or 5 years in prison (officers, directors, stockholders, employees, and agents)

Front 22

What is the Alien Tort Claims Act?

Back 22

statute granting jurisdiction to U.S. federal district courts over “any civil action by an alien for a tort only, committed in violation of the law of nations or of a treaty of the United States.”

Front 23

What is essential to proving the Alien Tort Claims Act?

Back 23

• Essential to demonstrate that the acts committed violate the law of nations.
• What constitutes law of nations?
o Law of nations is embodied in international agreements, treaties, and conventions.
o Passed to prevent problems with pirates, and prevents state courts from getting involved in international affairs.
o If your company is involved with any example below, those are considered to violate international norms.

Front 24

What are examples of violations of the alien tort claims act?

Back 24

Examples: forced labor, and human rights abuses such as murder, rape, torture, unlawful detention, and kidnapping.