CHAPTER 1

Changing of Global Business Environment

Presented by: Cham Arevalo

 International Trade Law
• International trade law is the set of laws and agreements that govern commerce
between countries.
• It create the rules that countries and businesses must follow in order to do business
across borders.

a. International Trade
• International trade is the purchase and sale of goods and services by companies in
different countries.
• Consumer goods, raw materials, food, and machinery all are bought and sold in the
international marketplace.
 International Trade Law- Cont.
b. In addition to states and international economic organizations
which are main subjects, who are also the actors/subjects/players of
international trade?
• Main Subject- States and International Economic Organizations
• Players- New Global
• Scene- The International Trade
 International Trade Law- Cont.
c. International Trade Rules
• International trade rules provide the 'rules of the game' for the international
trade ‘game',
• It is a wide range of rules that are 'international' and relate to trade or
'economics' having ‘legal' or 'regulatory' nature.
 Importance of International Trade Rules
1. International trade rules restrain countries from taking trade- restrictive
measures and to help to avoid an escalation of trade-restrictive measures
taken by states.
2. These rules satisfy the need of traders and investors for a degree security
and predictability which will encourage trade and investment.
3. These rules help states cope with the challenges presented economic
globalization, such as public health, clean environment, cultural identity and
minimum labor standards, etc.
4. It is the need to achieve a greater measure of equity in international
economic relations.
 International Business Transactions
1. Why does a business expand abroad?
• The fact of a business expansion abroad usually aims at increasing
turnover and profit, creating new markets, strengthening the
business's reputation in international level, or ensuring the sourcing of
raw materials.
• In the case where an enterprise decides to do international business, a
firm knowledge of international business law and related law would be
indispensable.

2. What Is International Business Law?

• It is the law governing international business transactions. The
understanding of international business law is not far from that of
'international commercial law‘.
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