International+Law+(Group+6)

= = =INTERNATIONAL LAW = Contributors: Jeffrey Saunders Amanda Bowman Ulanda Caldwell

toc Sources of International Law
Jeffrey Saunders

History of International Law
 Prior to the Middle Ages a King or powerful landowner ruled over his domain as he saw fit. His word was law for the workers (serfs/subjects). During the Middle Ages the Church was given the power to settle disputes. This custom continued until the 16th and 17th centuries when the power of the Church waned. As territories expanded into what are now known as countries/states, it became apparent that there was a need to have a set of principles which would govern disputes between powerful landowners/kings without resorting to extensive and expensive wars.Hugo Grotius (1583-1645) is considered the father of international law. In [|The Free Sea] (Mare Liberum, published 1609) (Damerow, 2012) Grotius formulated the new principle that the sea was international territory and all nations were free to use it for seafaring trade.

 The creation of international law as we now know it began with the existence of a modern state system and after the [|Treaty of Westphalia] (1648) (Damerow, 2012). During the 19th century, it was recognized that a sovereign could choose to limit its authority to act by consenting to an agreement according to the principal of [|pacta sunt servanda](Sources of international law, 2012) The legal rules by which the international systems operates is known as international law. The term was coined by Jeremy Benthan, a British law reformer in the early 19th century. Prior to Bentham it was known as the Law of Nations. The judiciary body which handles international concerns is the [|International Court of Justice] (World Court or IJC). The sovereign states are the primary subjects of international law. [|Other powers of international law] include:
 * Define the condition of peace, war, and neutrality
 * Establish rules for the conduct of war[[image:lawforbusiness/images 1.jpeg width="194" height="165" align="right"]]
 * Recognition of states
 * Dissolution of states
 * Recognition of governments
 * Rules of diplomacy and diplomatic etiquette (Damerow, 2012)

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Definition of International Law
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The simplest [|definition of International Law] is “the term used to describe the set of rules and regulations by which international system operate” (Damerow, 2012). International laws must also reflect the processes and principals regulating the international community. Since international law increasingly governs much more than merely relations between [|sovereign] states, it may be better defined as law decided and [|enforced at the international, as opposed to national level] (International Law-Definition, 2010)

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Sources of International Law
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Traditionally, [|the sources of international law](Moraitis, 2004) are regarded as being listed in Article 38 of the Statute of the International Court of Justice. <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">These are:
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International Conventions whether general or particular establishing rules expressly recognized by 'the contesting states'
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International custom as evidence of a general practice accepted as law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">The general principles of law recognized by civilized nations
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Judicial decisions and the teachings of the most highly qualified publicists of the various nations (as subsidiary means for the determination of rules of law).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Since WWII [|treaties](Moraitis, 2004) have become the primary source of international laws. In subsequent years it has been argued that the United Nations and the Security Council and the General Assembly are [|additional sources of international law] (International Court of Justice, 2012). Another source notes however, that <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">---it must be remembered that wherever a rule of international law may originate, it only becomes [|binding by the force](Section 4: Sources of International Law, 2009) of custom and through general acquiescence.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> This consensual view of international law is reflected in the 1920 Statute of the permanent Court of International Justice. Later, [|Article 38(1) of the 1946 Statute](International Law and National Frameworks, 2004) of the International Court of Justice further reflects this view. Article 38(1) is also recognized as a definitive statement of the sources of international law. According to this Article the Court must apply at least two basic premises <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> a. International conventions “expressly recognized by the contesting states” <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> b. “International customs as evidences of a general practice accepted as law” <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Later, a sub paragraph added the requirement that <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> c. The general principles applied by the court were those that had been “the [|general principals of the law] recognized by the civilized nations” (Gumaratni, 2011). <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">An additional subparagraph acknowledges that <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> d. The Court is entitled to refer to “[|judicial decisions]” and the most highly qualified juristic writings as subsidiary means for the determination of rules of law” (Sources of international law, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Subdivisions of International Law
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">There are several [|subsets of international law] (Gumaratni, 2011). Included are:
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Customary International Law wherein states follow certain practices and constraints consistently out of a sense of obligation
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Conventional International Law wherein the law is derived from international agreements and may be formulated in any manner the parties agree upon
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Public International Law which concerns itself only with questions of rights between several nations
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Private International Law deals with controversies between private persons arising out of situations having significance to more than one nation (Gumaratni, 2011).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">New Areas Governed by International Law
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> During the 20th century international law was expanded to include additional areas. These new subjects included individuals and multinational corporations. Non-state international organizations are also subject to international law. [|Other domains] (International Law, 2010) include,
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International economic law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International security law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International criminal law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International diplomatic law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International humanitarian law (also known as law of war)
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International human rights law
 * <span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">International trade laws (NAFTA)

<span style="color: #0000ff; display: block; font-family: 'Times New Roman',Times,serif; font-size: 24px; text-align: center;">Doing Business Internationally
<span style="color: #008080; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 19.2px; text-align: center;">Amanda Bowman

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Many businesses today have taken advantage of conducting and /or manufacturing business off shore. There are a number of ways in which businesses can take part in these types of transactions. The most common form of international business is the [|exporting] of goods and services. Secondly, businesses can establish a way of manufacturing those goods and services in foreign countries, in turn sell them in the United States and across the world.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Exporting
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The export of goods and services can be conducted in two forms; direct and indirect. [|Direct exporting] provides a U.S. firm the opportunity to sign a sales contract with a foreign purchaser that describes the conditions in which shipment and payment will take place. [|Indirect exporting] occurs when a U.S. firm establishes a specialized marketing organization. In addition to how exporting takes place is the involvement of the U.S firm during operations. Some U.S. firms may choose to have limited involvement in the international market. This creates an [|agency relationship.]

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Exporting has had a significant impact on jobs in the United States and the continued growth of capital for many businesses. The article “[|Made In the USA : An export boom], discusses the impact exporting has made in the past five years. President Barack Obama stated during his election campaign that in order to overcome the recession, we must increase the quantity of exporting goods and services.



<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Manufacturing Abroad
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The theory behind [|manufacturing] plants abroad is, it will reduce cost for labor, shipping and raw materials. U.S. firms participate in these acts of business to increase their competitive stand point against other firms. The article “[|A tale of Apple, the iPhone, and overseas Manufacturing]” discusses how former CEO Steve Jobs chose to have Apple products manufactured China to increase profitability, reduce the cost of labor and to produce the product in mass quantities. Manufacturing in foreign countries is conducted through either of the following procedures:

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Licensing
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> As with any other licensing agreement, a form of payment must be established as a part of the contract. Foreign bases licensing payments may consist of a price per unit or percentage of the profits per units sold. [|//Licensing of intellectual property rights//] is an important benefactor to all parties during a transaction. The firm granting the license receives profits from the sale of its goods and establishes a global reputation, while the firm receiving the license has the opportunity to exemplify a higher quality product.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Franchising
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> A [|franchise] agreement provides an owner of a trademark the opportunity to “share” or use its trademark or trade name with a potential business owner(franchisee) under certain conditions and contract terms. [|Subway] is an international trademark known for its franchising opportunities and popularity. Franchise owners pay a fee to utilize the trade name, which can be based on gross or net sales.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Completely owned subsidiary or Joint Venture
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Once a completely owned subsidiary is established, a U.S. firm retains ownership of all the facilities, manufacturing plants or warehouses, and all conditions of operations while housed in the foreign country. Firms that establish a joint venture will only have part ownership and control of the operations taking place in a foreign country. The remaining portion of ownership is maintained by local owners in the foreign country or other foreign counterparts. All owners whether foreign or home based share liabilities, responsibilities and profits.

Regulations of Specific Business Activities
<span style="color: #008080; display: block; font-family: Arial,Helvetica,sans-serif; font-size: 19.2px; text-align: center;">Ulanda Caldwell

<span style="color: #0000ff; font-family: 'Times New Roman',Times,serif; font-size: 24px;">

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> There are customized laws created between nations to restrict and or to facilitate [|internation][|al business] (International business,2012). This implementation is necessary to protect the countries, economies, foreign policies, domestic politics, as well as additional interests that will help increase the livelihood of trading within the global market (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> There are several very important controls within the customized international agreements. The agreements can include investment protections, export controls, import controls and trade agreements that minimize trade barriers and the United States implement Anti-trust Laws to ensure the best protection for the American citizens that they are gaining the most of their global trading (Cross & Miller, 2012).

**<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Investment Protection **
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Investment protection pertains to the property that a firm may have purchased in a foreign nation. There may be potential risks of that foreign government may [|expropriate] the investment property (Expropriation, 2012). The owner is compensated for the loss property and this does not violate observed principles of international law, however, if the owner is not compensated then there is a violation.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The [|remedies] are usually resolved with lump-sum settlements between the United States and the nation that initiated the challenge (Remedies, 2012). The nations have decided that it is necessary to address the potential risks by creating a guarantee within a national constitution or statutory laws and provisions within the international treaties (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Export Controls
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Export controls are embodied within [|Article 1, Section 9, Clause 5 of the United States Constitution] which state that Congress cannot impose any export taxes, therefore “No Tax or Duty shall be laid on Articles exported from any State.” They can, however, be creative in diversifying their efforts to either encourage or restrict exports (U.S. Constitution, 2004) (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The technology industry is growing rapidly and the U.S. implemented the [|Export Administration Act of 1979], is used to restrict the flow of technological data and products (Export Administration Act of 1979, 2001). The Act has since been amended in August 31, 2001 and replaced with the International Emergency Economic Powers Act which is a streamlined and strengthened export control system that effectively promotes both U.S. national security and U.S. economic interests.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The nations have commonly implemented export quotas, incentives subsidies that can encourage additional exporting to help enhance more global business (Cross & Miller, 2012). President Obama presented a speech on March 10, 2010 stating the importance of [|pushing exports to prevent a depression in the 21st Century].

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Import Controls
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Import Controls are customized with prohibitions, quotas and tariff restrictions worldwide. In the United States, the [|Trading with the Enemy Act of 1917] ensure that we do not import goods from designated enemy nations (Trading with the Enemy Act, 2012). Additional laws protect the U.S. from importation of books that may influence insurrection against the nation, harmful agricultural products that may be a danger to our animals and crops. The U.S. does not allow goods that may infringe the nation’s patents (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The government has created an agency, the [|Federal Trade Commission], to investigate any infringement allegations and they are allowed to impose penalties on the violating foreign nation(s) if applicable (Federal Trade Commission, 2012). The United States has set quotas which will limit the amount of imported goods as well as tariffs, the tax on the imported goods. The tariff is the percentage of the value of the import. This tax has been used for political retaliation by some nations in the past. The United States has also created customized laws to focus on the unfair international trade practices of various countries (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> Dumping is the sale of imported goods at less than fair value which is decided by the price of those goods in the exporting country. Some countries hope to undersell the businesses to possibly monopolize the U.S. market with that product. The United States will impose an extra tariff called the anti-dumping duty to eliminate the potential threat (Cross & Miller, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;"> The two agencies that will investigate any allegations are the[| International Trade Commission] (ITC) (n.d) which assess the effects of dumping on domestic businesses and then seek the advice of President Obama to establish temporary import restrictions and the [|International Trade Administration] (ITA), (n.d.) who decides if the goods

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">[[image:lawforbusiness/images 3.jpeg align="right"]]
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">are sold at less than fair value, then the amount of the anti-dumping duties are established and the costs may be retroactive to cover past dumping.

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Trade Agreements
Trade agreements that minimize trade barriers contribute to the goal of eliminating the trade barriers which are restrictions on imports all together may enhance the world’s economic well-being. The [|World Trade Organization](WTO) was created in 1995, embodies world leading trading nations members to ensure that there is favorable export and import processes among them, this communication has also created [|regional trade agreements] and associations that has helped simplify the their efforts (World Trade Organization, 2012) (Trade Agreements, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">The European Union (EU) was created during the [|1957 Treaty of Rome] and there are sufficient checks and balances within their governing authorities. The Council of Ministries includes a representative from each nation that coordinates economic policies and they are regulated by a commission who are in turn monitored by an elected assembly (Treaty of Rome, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">Canada, Mexico and the United States have created a regional trade agreement, the [|North America Free Trade Agreement] (NAFTA) with the goal of eliminating the tariffs amongst themselves while creating a competitive advantage for themselves as they retain tariffs on the countries that are not included within their agreement (North America Free Trade Agreement, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">On August 5, 2004, the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua created [|The Central America-Dominican Republic-United States Free Trade Agreement] (CAFTA-DR). The goal of this agreement is to reduce trade tariffs and improve the market between these nations (Central America-Dominican Republic-United States Free Trade Agreement, 2012).

<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">U.S. Antitrust Laws
<span style="font-family: 'Times New Roman',Times,serif; font-size: 110%;">The U.S. Antitrust Laws are created to subject firms in foreign nations to recognize their own provisions and also protect the foreign consumers and competitors from violations committed by U.S. citizens. The U.S. has implemented [|The Sherman Act of 1980] to ensure that their global trading are favorable at all times (Sherman Act of 1980, 2012).



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