To: Mr Raymond, Flojo

From: Tales Silva

Date: 10th April, 2022

Class: Legal Environ. of Bus.

Review Questions - Chapter 12

1. No, Germany and Indonesia may operate under different constraints, so it would not be
considered illegal.
2. Modern Traditional Theory acknowledges the right of a sovereign to nationalize foreign
property to exercise the right for a public citizen, which is non-discriminatory and followed by
reasonable and fair compensation.
3.
a) The future of export controls is in question as a result of the changing attitude towards
export control in post-Cold War society. Controlling exportation was mean to prevent foreign
enemies from obtaining technology that would improve their military role.
b) The dangers of inadequate export control are related to an increase in terrorist activity, as
the lack of control on weapons, for example, may offer the opportunity to authoritarian
regimes access military assets.
4.
a) The U.S. Supreme Court has jurisdiction over all state and federal courts. The
International Court of Justice has jurisdiction over UN members and non-UN members.
b) The court whose role is to decide, in accordance with international law, the disputes
referred to it shall apply: International treaties, whether general or specific, defining rules
specifically acknowledged by the applicant States; international customs as proof of common
practice accepted as law; General standards of law accepted by civilized nations; Judiciary
judgments and the lessons of the most highly trained publicists of the different nations.
5.
a) The three major principles of the WTO are nondiscrimination, national treatment, and
elimination of trade barriers.
b) It incentives the competition between businesses, and consequently customers have
more and cheaper options.
c) The European Union is composed of 28 European countries and it is divided as follows:
The Council of Ministers manages the actions of the Member States in a variety of ways.
The Commission is composed of individuals who represent the will and desires of the EU as
a whole. The Parliament is a body of elected officials who draft legislation. The Court of
Justice shall rule on the existence and conditions of EU law.
6.
a) CISG facilitates sales of goods by using contracts between parties wherever they are
located, having an international standard.
b) Free trade agreements such as NAFTA and CAFTA-DR Reduce trade barriers that allow
domestic products to be sold at affordable rates in foreign markets.
7. Request the seller to approve payment through an irrevocable, certified letter of credit.
8.
a) The license will protect its investment in a foreign country by taking far- steps to ensure
that its intellectual property is intact.
b) Licensing grant others the right to use your property and receive royalties. Foreign direct
investment involves the location of physical assets in a foreign nation and must be actively
supervised by senior management.
9. Advantages: both parties share the risks and costs; disadvantages: it is temporary limited
outside opportunities, lack of communication.
10. The Alien Tort Claims Act (ATCA) grants jurisdiction to U.S. federal district courts over
“any civil action by an alien for a tort only, committed in violation of the law of nations or a
treaty of the United States.”
11. No, because of the doctrine of sovereign immunity. Under this law, countries are given
immunity from prosecution by courts in other nations.
12. The Hague Service Convention allows each nation to set up a central authority to
process requests for documents from other nations.
13. The advantages to arbitrating international disputes are: the process will be more
streamlined and easier for the parties understand, and the parties can avoid the unwanted
publicity that often results in open court proceedings