CHAPTER 25 International Law in a Global Economy

1
CHAPTER 25International Law in a Global Economy
2
Learning Objectives

• What is the principle of comity and why do courts
  deciding disputes involving a foreign law apply
  this principle?
• What is the act of state doctrine?
• Under the Foreign Sovereign Immunities Act of
  1976, on what bases might a foreign state be
  considered subject to the jurisdiction of U.S.
  Courts?
• In what circumstances will U.S. antitrust laws be
  applied extraterritoriality?
• Do U.S. laws prohibiting employment
  discrimination apply in U.S. factories abroad?

3
International Principles and Doctrines

• The most important principles and doctrines
  applied in the interest of maintaining harmonious
  relations among nations
• The Principle of Comity.
• The Act of State Doctrine.
• The Doctrine of Sovereign Immunity.

4
The Principle of Comity

• One nation will defer and give effect to the
  laws and judicial decrees of another country, as
  long as those laws and judicial decrees are
  consistent with the law and public policy of the
  accommodating nation.
• JP Morgan Chase Bank v. Altos Hornos de Mexico,
  S.A. de C.V. (2004).

5
The Act of State Doctrine

• Judicial branch of one country will not examine
  the validity of public acts committed by
  recognized foreign government within its own
  territory.
• This doctrine is often invoked to protect
• Expropriation, and
• Confiscation.

6
The Doctrine of Sovereign Immunity

• This doctrine exempts foreign nations from
  jurisdiction in U.S. courts.
• The Foreign Sovereign Immunities Act expanded the
  jurisdiction of U.S. courts for creditors of
  foreign governments.

7
Doing Business Internationally

• Types of International Business Operations
• Exporting, through
• An Agent.
• A Foreign Distributor.
• Manufacturing Abroad, through
• Licensing.
• Franchising.
• Investing in a subsidiary or joint venture.

8
Commercial Contracts in an International Setting

• Choice of Language Clause.
• Choice of Forum.
• Garware Polyester, Ltd. V. Intermax Trading Corp.
  (2001).
• Choice of Law .
• Force Majeure (impossibility or act of God).
• Civil Dispute Resolution.

9
Making Payment on International Transactions

• Monetary Systems.
• Foreign Exchange Rates/Markets.
• Correspondent Banks (affiliated banks in
  different countries).
• Letters of Credit.
• Conditional promise by Issuer (Bank) to pay
  Beneficiary (Seller) on behalf of Account
  (Buyer).

10
Regulation of Specific Business Activities

• Nations impose laws and controls to restrict or
  facilitate international business.
• Investing.
• Export and Import Controls Quotas, Tariffs and
  Anti-Dumping Rules.
• International Organizations and Agreements World
  Trade Organization, European Union and NAFTA.

11
U.S. Laws in a Global Context

• U.S. antitrust law applies to the activities of
  U.S. firms even when they are acting abroad.
• Foreign persons and governments can sue under
  U.S. antitrust laws in U.S. courts.
• Generally, U.S. firms must abide by U.S.
  anti-discrimination law, even in their foreign
  activities, unless doing so would require them to
  violate the laws of the foreign country.
• United States v. Nippon Paper Industries, Co.
  (1997).