Management 450 International Transactions

Summer SPRING SESSION 2003

Instructor : Jean - Pierre Nicolas

3 Credits

E-mail :nicolasjeanpierre@yahoo.fr

Web Site :http://www.angelfire.com/nc2/jpn

Course Objectives:

1. To convey to the student an understanding of the importance of international business in a global economy. 

2. To assist the student in understanding the potential risks inherent in entering foreign markets, and to provide a foundation for the management of risk in an international transaction. 

3. To assist the student in understranding the ethical problems facing managers in foreign environments, and particularly with the social responsibility of managers operating in both developed and developing countries. 

4. To expose the student to the cultural and political environment of international business so as to understand how these factors affect the international business transaction, the decision-making process and the conduct of the firm abroard. 

5.  To closely examine the legal problems associated with the three basics forms of international business - trade, the licensing of intellectual property and foreign direct investment - within the context of managerial decision making. 

6. To explain fundamental principles of public international law as they relate to the regulation of trade and foreign investment and management of the international transaction. 

7. To explain the special legal and economic problems in doing business in developing countries, nonmarket countries, and the rapidly changing republics of former Soviet Union and Eastern Europe. 

8. To offer a comparative approach to the study of business law and the legal systems so as to understand how legal problems are treated in different societal and cultural environments. 

9. To assist the student in understanding the basic economic and political arguments regarding/free trade /open investment issues by focusing on existing international agreements and national laws designed to promote trade and investment. 

10. To develop in the student an awarness of the special legal problems facing multinational corporations that are trading , licensing and investing in foreign countries. 

Courses Descriptions

International Business Law is designed to be a basic course covering the law of international trade , licensing and investment from a managerial perspective. In part 1 of the course, the students will be introduced to the risks of international business and examine how whose risks differ from doing business domestically. This includes the transaction risks associated with importing and exporting, the risks of foreign licensing, including franchising, and the political risk inherent in foreign direct investment. Special attention will be following this format, the student is able to explore the increasing risks and legal complexities associated with greater penetration by the firm into foreign markets.

As an introduction to the study of international business law, the student will study the function and importance of public international law, as well as the role of public and private international organizations in settings standards and guideline for international business. Emphasis will be placed on understranding thelegal problems associated with econmicintegration, particularly within the European Community and in North America.

In Part 2, the student will examine the basis of buying and selling goods in foreign countries. The focus of this section is on providing the student with the practical knowledge needed to facilitate the international commercial transaction, and through the case study approach, enable the student to become more aware of potential risks and legal problems. Included for discussions will be problems involved in the documentary sale, international commercial and contract law, excuses for non-performance, problems in the settlements and disputes, and the legal problems of international trade finance, including collections, payments and bank letters of credit. Special devotion will be devoted to understanding marine risks, the liability of ocean carriers, and some basic concepts of maritime and insurance law.

In Part 3, covers the basic structure and principles of international trade law and negociations for trade. Students will see how nations have achieved a more fovorable trading environment through the etablishment of agreed-upon legal mecanisms for reducing tariffs and non tariff barriers. Students will examine the division authority between the US. Congress and the president with regards to the regulation of foreign trade. Examples include the use of president`s emergency powers and the impact of recent political events in the MiddleEast on business intersts there. The GATT principles and the WTO dispute resolution systems is extensively examined. Other specific topicsinclude American Import relief laws and unfair import laws with cases examples from steel, textile , semiconductor, aircraft, automobile and agricultural industries. The students will also examine the export licensing process and anti boycott compliance. In studying customs and tariff law, the student willlean how to determine the dutiable status of goods, how to utilze the rule of origin, and generally learn to view importing as a part of overhall strategy of the firm.

Part 4 introduces legal and ethical problems facing multinationals operating in a number of countries. These include: marketing issues (including bribery, truth in advertising, and agency problems ) in chapter 16, licensing and protection of intellectual property rights in Chapter 17 , risks of foreign direct investment involving host country corporate law and the taxation of the multinational corporation in Chapter 18 along with political risk and the traumatic loss of investment, the privatization of public assets in developping and formely communist countries in Chapter 19 ,( including traitment of Foreign Sovereign Immunities Act) a look at privatization problems in countries previously lacking a private property economic regime(Chapter 20), a comparative of host country employment laws in Chapter 21,a look at transnational environmental law developments in Chapter 22, and the regulation of competition and a comparative analysis of internationa lanitrust policies in Chapter 23. Part 4 approaches these subjects from comparative, managerial and environmental viewpoints.

Texbook;

International Business Law and its Environment , 

West Educational Publishing Company

Grading :

Attendance10%

Midterm quiz30%

Final exam45%

Cases15%

Basic text:Photocopies

Attendance: Attendance is mandatory. 

Exams:The midterm is a quiz with 20 questions .

The final is a quiz with 20 questions and a mini case.