1. Chapter 27 International Law in a Global Economy

2. Learning Objectives
What is the principle of comity, and why do courts deciding disputes involving a foreign law or judicial decree apply this principle?
What is the act of state doctrine? In what circumstances is this doctrine applied? 
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3. Learning Objectives
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 extraterritorially? 
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4. Learning Objectives
Do U.S. laws prohibiting employment discrimination apply in all circumstances to U.S. employees working for U.S. employers abroad?
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5. International Law – Sources and Principles
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. 
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6. International Law – Sources and Principles
Sources of International Law.
International Customs: “evidence of a general practice accepted as law.”
Treaties and International Agreements.
International Organizations.
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7. International Law – Sources and Principles
International Principles and Doctrines.
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.
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8. International Law – Sources and Principles
International Principles and Doctrines (cont’d).
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. Used in cases of expropriation, and confiscation.
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9. International Law – Sources and Principles
International Principles and Doctrines (cont’d).
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.
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10. Doing Business Internationally
Types of International Business Operations.
Direct Exporting.
Agency Relationship.
Distribution Agreement. 
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11. Doing Business Internationally
Types of International Business Operations (continued).
Manufacturing Abroad.
Licensing.
Franchising.
Investing in a Wholly-Owned Subsidiary or Joint Venture.
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12. Regulation of Specific Business Activities
Nations Impose Laws and Controls to restrict or facilitate international business.
Investment Protections: expropriation is a major concern.
Export Controls.
Incentives.
Subsidies.
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13. Regulation of Specific Business Activities
Import Controls.
Quotas and Tariffs. Quotas limit the amount of goods that can be imported. Tariffs are taxes upon imports.
CASE United States v. Inn Foods, Inc. (2009). Why is having two sets of books illegal?
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14. Regulation of Specific Business Activities
Import Controls (cont’d).
Antidumping Duties: less than fair value.
Minimizing Trade Barriers.
The European Union.
NAFTA.
CAFTA-DR.
Bribing Foreign Officials.
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15. Commercial Contracts in an International Setting
Contract Clauses.
Choice of Language.
Choice of Forum.
Choice of Law.
Force Majeure Clause (impossibility or “act of God”).
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16. Commercial Contracts in an International Setting
Civil Dispute Resolution.
Arbitration clauses.
United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention).
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17. 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).
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18. Ex. 27-1 Letter–of-Credit Transaction
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19. U.S. Laws in a Global Context
Do U.S. laws apply to other nations’ businesses?
U.S. Antitrust Laws.
Apply if foreign conspiracy has substantial effect on U.S. commerce. 
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20. U.S. Laws in a Global Context
International Tort Claims: often involve human rights allegations.
CASE Khulumani v. Barclay National Bank, Ltd. (2007). How did the bank collaborate with the apartheid regime? 
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21. U.S. Laws in a Global Context
Antidiscrimination Laws.
Generally, U.S. firms must abide by U.S. anti-discrimination laws, even in their foreign activities, unless doing so would require them to violate the laws of the foreign country (the “foreign laws exception”).
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22. U.S. Laws in a Global Context
Antidiscrimination Laws (cont’d).
Civil Rights Act of 1991 applies Title VII extraterritorially to all U.S. employees working for U.S. employers abroad (apparently does not apply to domestic nationals working for U.S. firms).
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