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1、Chapter 12Laws Affecting International Business and Travel,12-2,Copyright 2014 Pearson Education,Inc.,2,Topics,Home Country and Host Country LawsContractsEthics and the LawInternational LawsGlobal PatentsNonwritten LawInternational Travel and Law,12-3,Copyright 2014 Pearson Education,Inc.,3,The worl
2、d has numerous laws that affect international business.When a company is engaged in international business,what the company representatives can legally do is controlled by both their nation and the foreign nation with which they wish to conduct business.,12-4,Copyright 2014 Pearson Education,Inc.,4,
3、Terms,Act of State Doctrine-Each country can do as it wishes within its own boundaries.Home Country Laws-Laws,treaties,or acts that govern business within your own country(and those governing business with other countries).Host Country Laws-Laws,treaties,or acts that govern business within the forei
4、gn country with which you wish to conduct business.,12-5,Copyright 2014 Pearson Education,Inc.,5,Legal Requirements that Govern U.S.Citizens Actions During Negotiations,Antidiversion Requirement-Bill of lading and invoice must clearly display that the carrier cannot divert the shipment to a country
5、the U.S.government considers restricted.,12-6,Copyright 2014 Pearson Education,Inc.,6,Antiboycott Regulations-Prohibits U.S.companies from participating in boycotts between two foreign countries by refusing to do business with a friendly nation to comply with a foreign boycott.Antitrust Laws-Designe
6、d to ensure fair competition and low prices to U.S.consumers;these laws affect exporters in such areas as mergers and acquisitions of foreign firms,raw material procurement agreements,knowledge licenses,distribution channels,etc.,12-7,Copyright 2014 Pearson Education,Inc.,7,Written Information Laws,
7、The Export Administration Act of 1985-requires federal licensing of technical information in business correspondence.The Arms Export Control Act of 1968 and Trading with the Enemy Act of 1917-prohibit the transfer of information on military material or defense-related materials.The International Eme
8、rgency Economic Powers Act of 1977-governs information that is research oriented from being communicated to foreigners.,12-8,Copyright 2014 Pearson Education,Inc.,8,Technology Laws,The World Intellectual Property Organization(WIPO)of the United Nations promotes intellectual property rights worldwide
9、 and currently administers 23 treaties for 185 member nations.,12-9,Copyright 2014 Pearson Education,Inc.,9,Technology Laws,Berne Convention Implementation Act of 1988-recognized the copyrights of all the signatory nations to the act;165 countries were signatories in 2011.Madrid Convention-trademark
10、s are protected by the 35 countries that are signatories.(The U.S.is not a signatory.),12-10,Copyright 2014 Pearson Education,Inc.,10,Employment Laws,Most nations have legislation governing wages,hours,union-management relations,residence visas,and work permits.Some nations require a certain ratio o
11、f nationals to foreigners.Legal questions that may be asked of a potential employee differ by country.,12-11,Copyright 2014 Pearson Education,Inc.,11,Maquiladora Law,International maquiladora program in Mexico allows the duty-free import of equipment,machinery,and materials to assemble parts of prod
12、ucts that are then returned to the home country.,Presidential Decree for the Development and Operation of the Maquiladora Industry Program of 1983,12-12,Copyright 2014 Pearson Education,Inc.,12,The U.S.Tariff Code allows the final product to be brought into the country with only the final value adde
13、d to the goods being taxed.An important consideration in this program is the difference in form of law.The U.S.(except Louisiana)practices common law(based on what has been traditionally accepted as right over many years);Mexico practices civil law(body of laws of a state or nation related to privat
14、e matters).The difference is that civil law rather than precedent is considered during litigation.,12-13,Copyright 2014 Pearson Education,Inc.,13,International Law,International Court of Justice(also known as the World Court)-body of the United Nations that provides a way to settle international dis
15、agreements between countries rather than corporations.The three legal bodies in the United Nations are:United Nations Commission on International Trade Law(UNCITRAL),The International Commission,and the Sixth Committee of the General Assembly.,12-14,Copyright 2014 Pearson Education,Inc.,14,A movemen
16、t by institutions concerned with international business has encouraged the development of agreements and laws that are uniformly accepted in world trade.These institutions are:International Chamber of CommerceInternational Commercial Terms(Incoterms)ECE Standard ConditionsThe Hague ConventionThe Vie
17、nna Agreement,12-15,Copyright 2014 Pearson Education,Inc.,15,Quasi-international Law-rules for the relationship between legal entities and states that do not have national status,such as private corporations.Sanctions prohibit U.S.companies from doing business in targeted countries.When the U.S.gove
18、rnment does not approve of a countrys policies,they implement sanctions to try to reform the country.,12-16,Copyright 2014 Pearson Education,Inc.,16,Macaulays Thesis-considers long-term relationship more important than contracts.Thematization-process by which a framework for mutual communication and
19、 satisfaction is reached;process could be related to the law,economies,power,or religion.,12-17,Copyright 2014 Pearson Education,Inc.,17,Governance Structures,Market governance-contract basedTrilateral governance-adds an arbitratorBilateral governance-may not spell everything out but implies a conti
20、nuing relationshipUnified governance no details are negotiated in advance;maximum flexibility is provided-only one party sets terms for both parties;appropriate for subsidiaries of a single organization,12-18,Copyright 2014 Pearson Education,Inc.,18,Contracts,Contract-an agreement between parties to
21、 do something that is oral,written,or implied through conduct.How are contracts viewed in the U.S.?Very important;oral contract is legally enforceable.,12-19,Copyright 2014 Pearson Education,Inc.,19,How are contracts viewed in Japan?May be made verbally,in writing,or by conduct but are always open t
22、o renegotiation.How are contracts viewed by the Russian Federation?In the past little need existed for contracts;goods were allocated and firms accepted what was sent.This practice is now changing,but they still have problems with the concept.,12-20,Copyright 2014 Pearson Education,Inc.,20,Global Pa
23、tents,Company files patent application with the U.S.Patent office;limitation to file abroad is one year from the date of the U.S.application.Patent Cooperation Treaty-when patents are filed in other countries,the new patents claim priority to the date on the U.S.patent thus prevailing over competing
24、 rights of other investors.Treaties override all other domestic laws;nations need to be aware of their sovereignty and remember that treaties should be based on good science,rather than on wishful thinking or bad politics.,12-21,Copyright 2014 Pearson Education,Inc.,21,Unwritten Law,Unwritten busine
25、ss laws are called drawer regulations in Brazil because they operate from unwritten operational codes rather than laws.Many drawer regulations are disappearing with countries joining free trade markets.In high-context cultures(Japan),little emphasis is given to the written word;the situation would d
26、etermine whether to adhere to the law.Oral agreements would be considered binding,and written contracts would be considered flexible.,12-22,Copyright 2014 Pearson Education,Inc.,22,Ethics and the Law,profitcompetitionjusticeadvertising,Four motivations for unethical conduct in business:,12-23,Copyri
27、ght 2014 Pearson Education,Inc.,23,The three dimensions of negotiation ethics are:,Means/ends measured by utilityRelativism/absolutism considers two extremes:either everything is relative or everything is without deviation from the ruleTruth telling considers whether concealing information,conscious
28、 misstatements,exaggeration,or bluffing during negotiations is dishonest,12-24,Copyright 2014 Pearson Education,Inc.,24,Laws Related to Ethicsin Business,Foreign Corrupt Practices Act of 1977-requires U.S.companies to account for and report international transactions accurately and prohibits bribes(
29、including gifts and entertainment)that are used to gain a business advantage.,12-25,Copyright 2014 Pearson Education,Inc.,25,The Doctrine of Sovereign Compliance-an international legal principle that can be used as a defense in your home country for work carried out in a host country when the two co
30、untries legal positions are different.Export Trading Company Act of 1982-allows companies that normally would not be allowed to participate in joint ventures to develop trading companies similar to those in Britain and Japan(e.g.,GM,Ford,and Chrysler make parts with European and Japanese car manufac
31、turers to jointly produce and sell cars).,12-26,Copyright 2014 Pearson Education,Inc.,26,Legal and Ethical Practices are Viewed Differently,The word contraband in the U.S.suggests breaking the law by smuggling.In Latin America,however,the Spanish word is contrabando(from the word contrabandido,which
32、 means against the bandits,)and is viewed in a positive way.,12-27,Copyright 2014 Pearson Education,Inc.,27,International Travel and Law,A Passport-proof of citizenship;need a copy of your birth certificate and current photos.Citizenship-the state of being vested with certain rights and duties as a
33、native or naturalized member of a country.Visa-gives you the right to enter and stay in a country for a period of time for a specific purpose.,12-28,Copyright 2014 Pearson Education,Inc.,28,Consulate-made up of individuals sent by the government to other countries to promote commercial interests of
34、their home country.Customs Agents-enforce export and import laws of the country;have the right to search and confiscate anything you may have with you.Duties-import taxes,12-29,Copyright 2014 Pearson Education,Inc.,29,Suggestions for International Travel,Register with the U.S.Embassy or consulate wh
35、en you arrive.Turn to the Embassy or consulate for legal,medical,or financial problems.Contact the American Consul for a list of attorneys,to notify your family,and to protest any mistreatment.The Consul can visit you in jail but cannot get you released or provide for bonds or fines.,12-30,Copyright
36、 2014 Pearson Education,Inc.,30,Remember that you are subject to the laws of the country while you are there.Register with the local authorities if you plan a prolonged visit.You may be asked to leave your pass-port overnight or to complete certain forms.Use authorized outlets for cashing checks and
37、 buying airline tickets;avoid the black market or street money changers that you will see in many countries.,12-31,Copyright 2014 Pearson Education,Inc.,31,Ask before you photograph anything to be sure it is permissible.Avoid these common infractions of the law:trying to take historical artifacts or
38、 antiquities out of the country,customs violations,immigration violations,drunk or disorderly conduct,and business fraud.Obtain an International Drivers License if you need to drive.Travel agents can assist with this.Many countries require proof of insurance while driving.,12-32,Copyright 2014 Pears
39、on Education,Inc.,32,Do not deal in drugs;this is a serious offense in all countries,and penalties can be much more serious than in the U.S.,including death.Keep a list of credit card/travelers check numbers in a safe place in case they are lost or stolen.Obtain a copy of Safe Trip Abroad.,12-33,Cop
40、yright 2014 Pearson Education,Inc.,33,Make a list of such useful telephone numbers as the U.S.State Department,Amnesty International(New York),and the International Legal Defense Counsel(Philadelphia).Your health should be a concern;get a copy of Health Information for International Travel by the Ce
41、nter for Disease Control and Prevention.Be trustworthy,helpful,kind,friendly,courteous,obedient,cheerful,brave,and reverent.,12-34,Copyright 2014 Pearson Education,Inc.,34,Country-Specific Travel Tips,Brazil Passports are required and should be valid for six months from the date of entry.Since hotel
42、 accommodations vary widely,amenities should be confirmed.Public transportation includes subways in larger cities as well as buses and taxis.Canada Since 9/11/01,passports for U.S.citizens entering from the U.S.or another country are required.Hotel accommodations in large cities are similar to those
43、 in the U.S.Public transportation systems in Montral and Qubec City are very good.,12-35,Copyright 2014 Pearson Education,Inc.,35,Country-Specific Travel Tips,China U.S.citizens need a passport and a visa.Hotel accommodations in large cities are available.Public transportation systems exist througho
44、ut the country.Bicycles are the main mode of transportation.Germany Passport required,but U.S.citizens do not need a visa to travel in Germany for up to three months.No vaccinations are required.Hotel price generally includes a continental breakfast;heat may be an extra charge.Not all hotel rooms ha
45、ve a bath inside the room.Public transportation includes buses,trains,streetcars,subways,and taxis.,12-36,Copyright 2014 Pearson Education,Inc.,36,Country-Specific Travel Tips,Japan Passport needed,but no visa is needed for visits of less than 90 days.No vaccinations are required.Large cities have n
46、umerous Western-style hotels with private baths.Restroom facilities are usually unisex.Public transportation includes trains,subways,and buses.The“bullet train,”which runs between major cities,offers regular and first-class accommodations.,12-37,Copyright 2014 Pearson Education,Inc.,37,Country-Speci
47、fic Travel Tips,Mexico Proof of citizenship needed;U.S.citizens may stay up to three months in Mexico with no visa.No vaccinations are required but may be advisable when traveling in certain parts of the country.Resort towns and larger cities have numerous excellent hotel accommodations.Public trans
48、portation varies greatly from crowded buses to the subway of Mexico City.Driving in many parts of Mexico is not advisable.,12-38,Copyright 2014 Pearson Education,Inc.,38,Country-Specific Travel Tips,The Netherlands U.S.citizens need a passport but no visa.Hotels are comfortable.Public transportation
49、 is very good.Singapore U.S.citizens need a passport;visas are needed after 90 days.The Mass Rapid Transit subway serves most areas;many major U.S.hotel chains have hotels in the city.,12-39,Country-Specific Travel Tips,South Korea U.S.citizens need a passport but no visa for 30 days or less.Public
50、transportation is very good.No vaccinations required.Both Western and yogwan hotels are available.United Kingdom Passport required;U.S.citizens do not need a visa for visits up to six months.Public transportation includes the underground and taxis.,Copyright 2014 Pearson Education,Inc.,39,12-40,Copy
