International Business Law and Its Environment

by Schaffer, Richard; Earle, Beverley; Agusti, Filiberto

• ISBN13: 9780324261028
• ISBN10: 0324261020
• Edition: 6th
• Format: Hardcover
• Copyright: 2004-05-03
• Publisher: South-Western College/West

Summary

INTERNATIONAL BUSINESS LAW AND IT'S ENVIRONMENT, 4th Edition employs a comparative approach that emphasizes private law and facilitates effective managerial decision-making. The authors balance the legal challenges of doing business in developing and non-market-economy countries with the economic and political issues that commonly arise.

Table of Contents

Table of Cases	xxi
Table of Statutes	xxv
List of Frequently Used Acronyms	xxvii
Preface	xxix
Part One The Legal Environment of International Business	2	(100)
Introduction to International Business	4	(43)
Economic Interdependence	4	(1)
The Global Marketplace	5	(1)
The U.S. Experience	5	(1)
The Education of U.S. Managers	6	(1)
Forms of International Business	6	(13)
Trade	7	(1)
Comparative Advantage	7	(1)
Recent Trends in U.S. Trade	8	(1)
Trade in Services	9	(1)
Exporting	9	(1)
Direct Exporting	10	(1)
Indirect Exporting	10	(1)
Importing and Global Sourcing	11	(1)
Government Controls over Trade: Tariffs and Nontariff Barriers	11	(1)
Nontariff Barriers to Trade	11	(1)
Trade Liberalization and the World Trade Organization	12	(1)
Export Controls	12	(1)
Intellectual Property Rights and International Licensing Agreements	12	(1)
Protecting Intellectual Property Rights	13	(1)
Technology Transfer	13	(1)
International Franchising	13	(2)
Some Legal Aspects of Franchising	15	(1)
Foreign Direct Investment	15	(2)
Multinational Corporations	17	(1)
UNCTAD's World Investment Report	17	(1)
The Impact of Multinational Corporations	18	(1)
Subsidiaries, Joint Ventures, Mergers, and Acquisitions	18	(1)
United States Foreign Direct Investment	19	(1)
Conducting Business in Developing Countries	19	(8)
The Developing Countries	19	(1)
The Economic Environment in Developing Countries	20	(1)
Availability of Foreign Exchange in Developing Countries	21	(1)
Controls on Trade and Licensing in Developing Countries	21	(1)
Controls on Investment in Developing Countries	22	(1)
The Road to Free Markets, Consumer-Based Economics, and Private Ownership	22	(2)
Capital Investment	24	(1)
Privatization	25	(1)
The Results of Reform	25	(1)
The People's Republic of China	25	(1)
The Newly Industrialized Countries	26	(1)
The Less-Developed Countries	26	(1)
The Business Environment in Eastern Europe, Russia, and the Newly Independent Republics of the Former Soviet Union	27	(1)
The Transition from Communism to Free Markets and Private Enterprise	27	(1)
Managing the Risks of International Business	28	(19)
Risk Assessment and the Firm's Foreign Market Entry Strategy	31	(1)
Managing Distance and Communications	32	(1)
Selling Face-to-Face	32	(1)
Attendance at International Trade Shows	33	(1)
Language and Cultural Differences	33	(1)
Managing Currency and Exchange Rate Risks	33	(1)
Exchange Rate Risk	33	(2)
Floating and Fixed Exchange Rates	35	(1)
Methods of Managing Exchange Rate Risk	35	(1)
Currency Control Risk	35	(1)
Special Transaction Risks in Contracts for the Sale of Goods	35	(1)
Payment or Credit Risk	36	(1)
Delivery Risk	36	(1)
Property or Marine Risk	36	(1)
Pilferage and Containerized Freight	36	(1)
Managing Political Risk	37	(1)
Causes of Political Risk	37	(1)
The Impact on Trade Relations	37	(1)
The Risk of International Hostilities	38	(1)
Handling Political Risk	38	(1)
Risks of Foreign Laws and Courts	38	(2)
Ethical Issues in International Business	40	(1)
Receiving Professional Assistance in Going International	41	(1)
The International Attorney	41	(3)
Freight Forwarder/Customs Broker	44	(1)
The International Banker	44	(3)
International Law and Organizations	47	(27)
Public International Law	47	(8)
The Law of Treaties	49	(1)
The Vienna Convention on the Law of Treaties	49	(1)
Pacta sunt servanda	49	(1)
Jus cogens	49	(1)
The Impact of Treaties on Business	50	(2)
International Court of Justice	52	(1)
Problems of Jurisdiction	53	(2)
Developments Since the Nicaragua Case	55	(1)
The Role of the United Nations in the Public International Law	55	(1)
The General Assembly and the Security Council	55	(1)
The UN Security Council and Iraq	56	(1)
International Law and the World of Business	56	(1)
Private International Law	56	(8)
Comparison of National Legal Systems	57	(1)
Common and Civil Law	58	(1)
Socialist Law	58	(1)
Islamic Law	59	(1)
Comparative Law	59	(3)
Foreign Investment Codes	62	(2)
International Organizations	64	(4)
Organizations Affiliated with the United Nations	64	(1)
History and Development of the ``Bretton Woods'' Institutions	65	(1)
International Monetary Fund	66	(1)
The IMF and the World Bank	66	(1)
International Bank for Reconstruction and Development	66	(1)
GATT and WTO	67	(1)
OECD	67	(1)
International Chamber of Commerce	67	(1)
The Rome Statute of the International Criminal Court	68	(1)
Other Organizations	68	(1)
Human Rights, Ethics, and Business' Response	68	(6)
Cultural and Ethical Environment	71	(3)
Resolving International Commercial Disputes	74	(28)
Avoiding Business Disputes	74	(1)
Cultural Attitudes Toward Disputes	74	(1)
Methods of Resolution	75	(1)
Alternate Dispute Resolution	75	(4)
Mediation	75	(1)
Arbitration	76	(1)
National Arbitral Laws	76	(1)
Arbitration Bodies	77	(1)
Arbitration Clauses	77	(1)
Enforcement of Arbitration Awards	77	(2)
Litigation	79	(13)
Jurisdiction	79	(1)
In Personam Jurisdiction	80	(1)
Requirement for In Personam Jurisdiction: Minimum Contacts	80	(2)
Jurisdiction in the Internet Age	82	(3)
Obtaining Jurisdiction by Service of Process	85	(1)
Venue	86	(1)
Forum Non Conveniens	87	(1)
Forum Shopping	88	(1)
In re Union Carbide Gas Plant Disaster at Bhopal	89	(1)
Forum Selection Clauses	90	(2)
Conflicts of Law	92	(4)
The Restatement (Second) of the Conflict of Laws	92	(1)
Contracts	92	(1)
Torts	93	(1)
Choice of Law Clauses	93	(1)
The Application of Foreign Law in American Courts	93	(1)
Judicial Assistance: Discovery and the Collection of Evidence	93	(2)
Letters Rogatory	95	(1)
Antisuit Injunctions	96	(1)
Enforcement of Foreign Judgments	96	(1)
Uniform Foreign Money Claims Act	97	(1)
Commercial Disputes with Nations	97	(5)
Part Two International Sales, Credits, and the Commercial Transaction	102	(142)
Sales Contracts and Excuses for Non-Performance	104	(45)
The Development of International Sales Law	104	(5)
Modern Sales Law in the United States: The UCC and CISG	104	(1)
Conflicts of Law	105	(1)
Choice of Law Clauses	106	(1)
Development of the CISG	106	(1)
Contract Law in the Developing Countries	106	(1)
Contract Law in Socialist Countries	107	(1)
Contract Law in the People's Republic of China: An Illustration	108	(1)
The 1999 Contract Law of China	109	(1)
The Convention on Contracts for the International Sale of Goods	109	(4)
Applicability of the CISG to International Transactions	110	(1)
Place of Business Requirement	110	(2)
Sales Excluded from the CISG	112	(1)
Validity and Formation of International Sales Contracts	113	(14)
Enforcement of Illegal Contracts	113	(1)
The Writing Requirement	114	(1)
Digital Signatures in Electronic Commerce	115	(1)
Problems of Interpretation	115	(1)
The Parol Evidence Rule	115	(1)
Customs, Practices, and Trade Usages	116	(1)
Trade Usages under the CISG	116	(1)
Entering the Agreement: The Offer	116	(1)
The Intention to Be Bound	116	(1)
Public Offers	117	(1)
Open Price Terms	117	(1)
Firm Offers	117	(1)
Entering the Agreement: The Acceptance	118	(1)
Silence as Acceptance	118	(1)
Time of Acceptance	118	(2)
The Mirror Image Rule	120	(1)
The Manner of Offer and Acceptance: Buyer's and Seller's Forms	120	(1)
The Pro Forma Invoice	121	(1)
Contract Terms and Conditions and the ``Battle of the Forms''	121	(3)
The Battle of the Forms under the Common Law and Civil Law	124	(1)
The Battle of the Forms and Mirror Image Rule under the UCC	124	(1)
Confirmation Notices---German Law and the CISG	125	(1)
The Battle of the Forms under the CISG	125	(1)
The Validity of Standard Contract Terms: A Comparison	126	(1)
Express and Implied Warranties	127	(4)
Implied Warranties	127	(2)
Disclaiming Implied Warranties	129	(1)
Notice of Nonconforming Goods	130	(1)
Remedies for Breach of Contract	131	(7)
Avoidance and the Fundamental Breach	131	(1)
Fundamental Breach	131	(1)
Buyer's Right to Avoidance	131	(1)
Notice of Avoidance	131	(2)
Seller's Right to Remedy	133	(1)
Seller's Additional Time to Perform	133	(1)
Seller's Avoidance	134	(1)
Price Reduction	134	(1)
Money Damages	134	(3)
Foreign Money Judgments	137	(1)
Specific Performance in Common Law and Civil Law Systems	137	(1)
Specific Performance under the CISG	137	(1)
Anticipatory Breach	138	(1)
Right to Suspend Performance	138	(1)
Right to Avoidance	138	(1)
Avoidance of Installment Contracts	138	(1)
Events Beyond the Control of the Parties: Excuses for Nonperformance	138	(4)
Impossibility of Performance	139	(1)
Supervening Illegality	139	(1)
Frustration of Purpose	139	(1)
Commercial Impracticability	140	(1)
Extreme Hardship, Difficulty, or an Unreasonable Expense	140	(1)
Unforeseen Events	140	(1)
Shortages and Market Price Fluctuations	141	(1)
The CISG Exemptions for Impediments Beyond Control	141	(1)
Force Majeure Clauses	141	(1)
Cultural Influences on Contract Negotiations	142	(7)
Negotiating Contracts in Japan	142	(7)
The Documentary Sale and Terms of Trade	149	(29)
Payment and Delivery Risk	149	(1)
The Documentary Sale	150	(14)
The Document of Title	150	(1)
The Bill of Lading	150	(1)
Order and Bearer Documents	150	(3)
Importance of Negotiability to Trade	153	(1)
Documentary Collections	153	(2)
Rights of Purchasers of Bills of Lading	155	(1)
Good-Faith Purchasers of Bills of Lading	155	(1)
Carrier's Misdelivery	155	(1)
Shipside Bonds	155	(1)
Carrier's Lien	156	(1)
Responsibilities of Buyer and Seller in a Documentary Sale	157	(1)
Seller's Duty to Tender Documents	158	(1)
Seller's Additional Risk of Nonpayment	159	(1)
Certificates of Inspection or Analysis	159	(1)
Measuring Damages for Breach of the Documentary Sale	159	(1)
Types of Ocean Bills of Lading	160	(1)
Clean Bills of Lading	160	(1)
Onboard Bills of Lading	160	(1)
Received-for-Shipment Bills of Lading	161	(1)
Straight Bills of Lading	162	(1)
Other Types of Transport Documents	162	(1)
Air Waybills	162	(1)
Forwarder's Bill of Lading	162	(1)
Multimodal Transport Documents	162	(2)
Electronic Data Interchange	164	(1)
Shipping Terms and the Risk of Loss	164	(14)
Allocating the Risk of Loss	164	(1)
Destination Contracts	165	(1)
Shipment Contracts	165	(1)
The Risk of Loss in International Sales under the CISG	165	(1)
Freight and Transportation Charges	166	(1)
Trade Terms	166	(1)
International Rules for the Interpretation of Trade Terms	167	(1)
``E'' Terms	167	(5)
``F'' Terms	172	(1)
``C'' Terms	172	(1)
``D'' Terms	173	(1)
Modification of Trade Terms	173	(5)
The Carriage of Goods and the Liability of Air and Sea Carriers	178	(33)
Carrier's Liability for Misdelivery of Cargo	178	(1)
Bailments and Common Carriers	178	(2)
The Liability of International Air Carriers: From Warsaw to Montreal	180	(6)
The Warsaw and Montreal Conventions	181	(1)
Limitations on Air Carrier Liability and Special Drawing Rights	181	(1)
Liability for Death or Bodily Injury	182	(1)
Limitations on Liability for Death or Bodily Injuries	182	(3)
Jurisdiction	185	(1)
Time Limitations	185	(1)
Liability for Air Cargo and Baggage Losses	185	(1)
Cargo Losses	185	(1)
Baggage Losses	185	(1)
Delay	185	(1)
The U.S. Death on the High Seas Act	185	(1)
Liability for the Carriage of Goods by Sea	186	(12)
History of Carrier Liability	186	(1)
The Harter Act	187	(1)
The Hague Rules	187	(1)
The Carriage of Goods by Sea Act	187	(1)
Limitations of Liability under COGSA	187	(1)
Forum Selection Clauses	187	(1)
Nautical Liability of the Carrier	187	(1)
Establishing the Carrier's Liability	188	(1)
Carrier's Due Diligence	188	(1)
Seaworthiness of the Ship	188	(1)
Errors in Navigation or Mismanagement of the Ship	189	(1)
Damage from Fire Aboard Ship	189	(1)
Perils of the Sea	190	(1)
The Q-Clause Defense	191	(1)
Shipper's Liability for Hazardous Cargo	192	(1)
Carrier's Liability for Cargo Shortages	193	(2)
The Per Package Limitation	195	(2)
Liability for a Material Deviation	197	(1)
Himalaya Clauses	198	(1)
The Hamburg Rules	198	(1)
The Visby Amendments	198	(1)
The Liability of Ocean Transportation Intermediaries	198	(3)
Freight Forwarders	199	(1)
Non-Vessel Operating Common Carriers	199	(1)
The Ocean Shipping Reform Act of 1998	199	(2)
Marine Cargo Insurance	201	(10)
Marine Insurance Policies and Certificates	201	(1)
General Average and FPA Losses	202	(1)
The York-Antwerp Rules	202	(1)
General Average Claims by the Carrier	202	(1)
Real and Substantial Danger	202	(1)
Particular Average Losses	203	(1)
Types of Coverage	203	(1)
The Perils Clause	203	(1)
All Risks Coverage	203	(5)
War Risk	208	(3)
Bank Collections, Trade Finance, and Letters of Credit	211	(33)
The Bill of Exchange	211	(2)
The Origin of Bills of Exchange	211	(1)
Brief Requirements of a Bill of Exchange	212	(1)
Negotiation and Transfer of Negotiable Instruments	212	(1)
The Documentary Draft and the Bank Collection Process	212	(1)
The SWIFT System	213	(1)
Trade Finance	213	(3)
The Use of Time Drafts and Acceptances	213	(2)
Banker's Acceptances and Acceptance Financing	215	(1)
Credit Risk in Trade Finance Programs	215	(1)
Credit Risk in Acceptance Financing: Rights of the Holder in Due Course	215	(1)
Credit Risks in Factoring Accounts Receivable: The Rights of the Assignee	216	(1)
The Documentary Letter of Credit	216	(22)
The Letter of Credit Defined	218	(2)
Law Applicable to Letters of Credit	220	(1)
The Uniform Customs and Practice for Documentary Credits	220	(1)
Legal Effect of the UCP	220	(1)
Letters of Credit Are Independent of the Underlying Transaction	220	(1)
Rights of the Account Party in Cases of Fraud	220	(2)
A Letter of Credit Transaction	222	(3)
Irrevocability of Letters of Credit	225	(1)
Advising the Letter of Credit	225	(1)
Seller's Compliance with the Credit	225	(2)
Collecting on the Credit	227	(1)
Examination of the Documents Under the UCP	227	(1)
The Rule of Strict Compliance	228	(3)
Other Views on Strict Compliance	231	(1)
Avoiding and Handling Discrepancies	231	(1)
An Ethical Issue in Handling Letters of Credit	231	(1)
Procedures for Dishonor	232	(1)
Issuer Preclusion	232	(1)
Confirmed Letters of Credit	232	(2)
Liability of Confirming Bank	234	(1)
Standby Letters of Credit	234	(1)
Standby Credit as Performance Guaranty	234	(1)
Middle East Politics and Standby Letters of Credit: The Iranian Claims	235	(1)
Other Specialized Uses for Letters of Credit	236	(1)
Transferable Credits	237	(1)
Red Clauses in Credits	237	(1)
Revolving and Evergreen Credits	237	(1)
Back-to-Back Letter of Credit Financing	237	(1)
Electronic Data Interchange and the ``eUCP''	237	(1)
Letters of Credit in Trade Finance Programs	238	(1)
AID Financing	238	(1)
Eximbank Financing	238	(1)
Commodity Credit Corporation	238	(1)
Foreign Credit Insurance Association	238	(1)
Countertrade	238	(6)
What Is Countertrade?	239	(1)
Counterpurchase	239	(1)
Barter	239	(1)
Buy-Back	240	(4)
Part Three International and U.S. Trade Law	244	(256)
National Lawmaking Powers and the Regulation of U.S. Trade	246	(35)
U.S. Trade Law and American Foreign Policy	246	(1)
The Separation of Powers	247	(3)
The Executive--Legislative Debate	249	(1)
The Congress	249	(1)
The President	250	(1)
The Treaty Power	250	(3)
Treaty Powers and the Constitution	251	(1)
Treaties of Friendship, Commerce, and Navigation	251	(2)
The Equal-Dignity Rule	253	(1)
Executive Agreements	253	(3)
Sole-Executive Agreements and the President's Inherent Power	254	(1)
Congressional--Executive Agreements	255	(1)
Trade Agreements	256	(6)
The Smoot--Hawley Tariff Act of 1930	256	(1)
The Reciprocal Trade Agreements Act of 1934	256	(2)
More Recent U.S. Trade Legislation	258	(1)
The General Agreement on Tariffs and Trade	259	(1)
The Legal Status of GATT 1947	259	(1)
Presidential Authority for GATT Multilateral Trade Negotiations	259	(1)
Trade Promotion Authority	259	(1)
Trade Negotiating Objectives	259	(3)
Expanded Powers	262	(1)
The President's Emergency Powers	262	(7)
Trading with the Enemy Act	262	(1)
National Emergencies Act	263	(1)
International Emergency Economic Powers Act	263	(1)
Economic Sanctions under IEEPA	263	(1)
USA Patriot Act	264	(1)
IEEPA and U.N. Sanctions Against Iraq	265	(1)
Court Challenges to IEEPA	265	(1)
IEEPA and the 1979 Iranian Revolution	265	(1)
The Case of the ``American Taliban''	266	(2)
U.S. Sanctions on Trade with Cuba	268	(1)
The Helms--Burton Act	268	(1)
The Effectiveness of Trade Sanctions	269	(1)
Federal-State Relations	269	(7)
The Supremacy Clause	269	(1)
Burma, Human Rights, and Federal Preemption	269	(1)
Economic Sanctions against Burma	270	(1)
The Import--Export Clause	271	(2)
The Commerce Clause	273	(1)
The Commerce Clause and Multiple Taxation	273	(2)
State Income Taxation of Multinational Corporations	275	(1)
State Restrictions on Exports	275	(1)
State Restrictions on Imports	276	(1)
Federal Agencies Affecting Trade	276	(5)
United States Department of Commerce	276	(1)
United States Department of Homeland Security	276	(1)
Border and Transportation Security	276	(1)
The Impact of Homeland Security on American Importers and Exporters	277	(1)
United States Trade Representative	277	(1)
International Trade Commission	277	(1)
The U.S. Court of International Trade	277	(4)
Gatt Law and the World Trade Organization: Basic Principles	281	(34)
Import Barriers to Trade	281	(7)
Anatomy of a Trade War: Auto Parts to Japan	282	(1)
The U.S. Position	282	(1)
The Japanese Position	283	(1)
A Breakdown in Negotiations	283	(1)
An ``Eleventh Hour'' Settlement	283	(1)
Reasons for Regulating Imports	284	(1)
Tariffs	285	(1)
Nontariff Barriers to Trade	285	(1)
Embargoes	285	(1)
Quotas	285	(1)
Auctioned Quotas	286	(1)
Tariff-Rate Quotas	286	(1)
Indirect Nontariff Barriers	286	(1)
The Japanese Large-Scale Retail Stores Law	287	(1)
Import Licensing Schemes and Customs Procedures as Trade Barriers	288	(1)
Transparency	288	(1)
Impact of Trade Barriers on Managerial Decisions	288	(1)
The General Agreement on Tariffs and Trade	288	(3)
The GATT Framework	289	(1)
GATT and U.S. Law	290	(1)
GATT Agreements as a Basis for Interpreting U.S. Trade Statutes	290	(1)
Scope and Coverage of GATT 1947	290	(1)
Scope and Coverage of GATT 1994	291	(1)
The World Trade Organization	291	(2)
Organization of the WTO	292	(1)
GATT/WTO Dispute-Settlement Procedures	293	(3)
WTO Dispute-Settlement Procedures	293	(3)
WTO Reports as Legal Precedent	296	(1)
GATT 1994: Major Principles of Trade Law	296	(2)
Multilateral Trade Negotiations	297	(1)
The Kennedy Round	297	(1)
The Tokyo Round	297	(1)
The Uruguay Round	297	(1)
The Doha Development Agenda	297	(1)
The Seattle and Cancun Meetings	298	(1)
Tariffication	298	(1)
Zero-for-Zero Tariff Elimination	298	(1)
Tariff Concessions, Bound Rates, and Tariff Schedules	298	(1)
Nondiscrimination, Most Favored Nation Trade, and National Treatment	298	(7)
Most Favored Nation Trade	300	(1)
Unconditional MFN Trade	300	(1)
Normalization of U.S. Trade Relations with Russia and Vietnam	301	(1)
NTR and Human Rights	301	(1)
Normalization of Trade Relations with China	302	(2)
Other Exceptions to Normal Trade Status	304	(1)
National Treatment	305	(2)
GATT and the Elimination of Quotas	307	(8)
Quantitative Restrictions: The Balance-of-Payments Exception and Developing Countries	308	(7)
Laws Governing Access to Foreign Markets	315	(33)
The General Principle of Least Restrictive Trade	315	(2)
Technical Barriers to Trade	317	(9)
The Protection of Public Health, Safety, or Welfare	318	(1)
Restrictions on Sale and Distribution: Testing and Inspections	318	(1)
Why Technical Regulations and Standards Are Barriers to Trade	319	(1)
Technical Barriers in the European Union	319	(1)
Technical Barriers in Japan	320	(2)
International Organization for Standardization	322	(1)
The GATT 1994 Agreement on Technical Barriers to Trade	322	(4)
Import Licensing Procedures	326	(1)
The GATT 1994 Agreement on Import Licensing Procedures	326	(1)
Trade Facilitation	326	(1)
Government Procurement	326	(2)
The GATT 1994 Agreement on Government Procurement	327	(1)
Agencies Excluded from the Procurement Rules	327	(1)
Procurement Rules	327	(1)
Transparency in Procurement Procedures	328	(1)
Administering Government Procurement Rules in the United States	328	(1)
Other Procurement Agreements	328	(1)
Trade in Services	328	(2)
The GATT 1994 General Agreement on Trade in Services	329	(1)
Recognition of Licensing and Professional Qualifications	330	(1)
The GATS Agreement on Trade in Financial Services	330	(1)
The GATS Agreement on Basic Telecommunications	330	(1)
Trade in Agriculture	330	(5)
The GATT 1994 Agreement on Agriculture	332	(1)
Domestic Support Programs	332	(1)
Agricultural Export Subsidies	332	(1)
Making Export Markets Accessible	332	(1)
Food, Animal, and Plant Safety	333	(1)
Codex Alimentarius	333	(2)
Trade in Textiles and Clothing	335	(1)
The GATT 1994 Agreement on Textiles and Clothing	336	(1)
Other WTO Trade Agreements	336	(2)
Trade-Related Investment Measures	336	(1)
Trade-Related Aspects of Intellectual Property Rights	337	(1)
Information Technology Agreement	338	(1)
Trade Sanctions and U.S. Section 301: The Threat of Retaliation	338	(10)
Basic Section 301	338	(1)
Section 301 Procedures	338	(2)
Sanctions and Retaliatory Measures	340	(1)
The Trade and Development Act of 2000: The Carousel Law	340	(1)
Special 301	340	(1)
Telecommunications 301	341	(1)
Super 301	341	(1)
Assessing the Impact of Unilateral Action	342	(6)
Regulating Import Competition and Unfair Trade	348	(26)
The Double-Edged Sword of Import Regulation	348	(1)
Safeguards Against Injury	349	(8)
The GATT Escape Clause	349	(1)
The GATT 1994 Agreement on Safeguards	349	(1)
Limits on the Use of Safeguards	350	(1)
Trade Compensation	350	(1)
The WTO Committee on Safeguards	350	(1)
Safeguards Against Injury under U.S. Law	350	(1)
Standard for Import Relief	350	(1)
ITC Safeguard Investigations	350	(3)
Available Remedies under U.S. Law	353	(1)
Trade Adjustment Assistance	353	(1)
Federal Assistance to Firms	354	(1)
The U.S. Steel Industry: A Case Study in Protectionism	354	(3)
Unfair Import Laws: Dumping and Antidumping Duties	357	(8)
The Economics of Dumping	357	(1)
The GATT 1994 Antidumping Agreement	358	(1)
Calculating the Dumping Margin	358	(1)
Calculating the Export Price	359	(1)
Calculating the Normal Value of Like Products in the Exporting or Producing Country	359	(1)
What Is a ``Like Product''?	359	(2)
Adjustments to Value and Price	361	(1)
Market Viability Test and Constructed Value	361	(1)
Sales Below Cost	362	(1)
The Level-of-Trade Problem	362	(1)
GATT Dispute Settlement in Dumping Cases	362	(1)
Dumping and Non-market Economy Countries in Transition	363	(1)
Market-Oriented Industries	363	(2)
Unfair Import Laws: Subsidies and Countervailing Duties	365	(6)
GATT 1994 Agreement on Subsidies and Countervailing Measures	366	(1)
Definition of a Subsidy	366	(1)
Prohibited Subsidies	366	(1)
Domestic Subsidies	367	(1)
Remedies for Adverse Effects of Domestic Subsidies	367	(1)
What Makes a Subsidy Specific?	367	(1)
Upstream Subsidies	367	(1)
Nonactionable or Socially Beneficial Subsidies	368	(1)
Subsidies and State Owned Enterprises	368	(1)
Exports from Newly Privatized Enterprises	368	(1)
When a Remedy Becomes a Subsidy: The Controversy over the Continued Dumping and Subsidy Offset Act of 2000	368	(2)
Material Injury in U.S. Unfair Import Cases	370	(1)
Judicial Review in International Trade Cases	371	(3)
Imports, Customs, and Tariff Law	374	(44)
The Administration of Customs and Tariff Laws	374	(14)
Locating Customs and Tariff Laws	375	(1)
The Formal Entry Process	375	(1)
Required Documentation	375	(3)
The Commercial Invoice	378	(1)
The Entry Summary and Immediate Delivery Forms	378	(1)
Payment of Duties	378	(1)
Informal Entries	378	(1)
Electronic Entry Processing	378	(1)
Remote Location Filing	379	(1)
Liquidation and Protest	379	(1)
Time Limits on Liquidation	379	(1)
Protesting Liquidations	379	(1)
Judicial Review of Protests	379	(1)
Enforcement and Penalties	379	(1)
Making Materially False Statements to Customs	380	(1)
Negligent Violations	380	(1)
Gross Negligence	380	(1)
Civil Fraud	380	(2)
Aggravating and Mitigating Circumstances	382	(1)
Informed Compliance and Shared Responsibility	382	(1)
The Reasonable Care Checklist	383	(1)
Reporting Errors to Customs Before an Investigation	383	(1)
The Statute of Limitations	384	(1)
Record Keeping Requirements	384	(1)
Judicial Enforcement of Penalty Actions	385	(1)
Binding Rulings	385	(1)
Judicial Review	385	(1)
Judicial Review of Formal Rulemaking	386	(1)
Judicial Review of Binding Rulings	386	(1)
Pre-Importation Judicial Review in Emergency Circumstances	386	(2)
Dutiable Status of Goods	388	(20)
The Harmonized Tariff Schedule	388	(1)
Using the Harmonized Tariff Schedule	388	(1)
The Classification of Goods	389	(2)
Understanding Tariff Descriptions: The Common Meaning Rule	391	(2)
Determining the Classification of Products: Questions of Law and Fact	393	(1)
Classification by Actual or Principal Use	393	(1)
Using the General Rules of Interpretation	393	(2)
The Rule of Relative Specificity	395	(1)
Classification by Essential Character	395	(1)
Classification of Items Packaged for Retail Sale as a Set	395	(2)
Classification at the Subheading Level	397	(1)
Tariff Engineering	397	(1)
Customs Valuation	398	(1)
Agency Commissions	398	(1)
Assists	399	(1)
Other Methods of Calculating Dutiable Value	399	(1)
Currency Exchange Rates	400	(1)
Country-of-Origin	400	(1)
Rules of Origin	400	(1)
The Substantial-Transformation Test	400	(2)
Substantial Transformation: The ``Name, Character, or Use'' Test	402	(3)
GATT 1994 Agreement on Rules of Origin	405	(1)
Special Rules of Origin for Textiles and Apparel	405	(1)
Opportunities for Business Planning	406	(1)
Marking and Labeling of Imports	406	(1)
Customs Marking Rules	407	(1)
Items Not Requiring Marks	407	(1)
Federal Trade Commission ``Made in U.S.A.'' Rules	407	(1)
Partly Made in the U.S.A.?	408	(1)
U.S. Trade Preferences for Developing Countries	408	(3)
The Generalized System of Preferences	408	(1)
Eligibility of GSP Status	408	(1)
GSP Rules of Origin	409	(1)
Caribbean Basin Economic Recovery Act	409	(1)
CBERA Rules of Origin	410	(1)
The 2000 Caribbean Basin Trade Partnership Act	410	(1)
Africa Growth and Opportunity Act of 2000	411	(1)
Andean Trade Program	411	(1)
Other Customs Laws Affecting U.S. Imports	411	(7)
Drawbacks	411	(1)
Returns of U.S. Exports	412	(1)
Foreign Trade Zones	412	(6)
North American Free Trade Law	418	(34)
The North American Free Trade Area	418	(2)
Canada--U.S. Trade	419	(1)
Mexico--U.S. Trade	419	(1)
What Is NAFTA?	420	(3)
Survey of NAFTA's Coverage	420	(1)
How NAFTA Came into Being	420	(1)
Regional versus Global Trade Liberalization	420	(1)
Free Trade Area of the Americas	421	(1)
Survey of Trade and Tariff Provisions	421	(1)
National Treatment	421	(1)
Tariff Elimination	422	(1)
Elimination of Nontariff Barriers	422	(1)
Continuing Nontariff Barriers	422	(1)
Rules of Origin	423	(7)
Goods Wholly Produced or Obtained in North America	423	(1)
Annex 401 Tariff-Shift Rule of Origin	423	(1)
Changes in Tariff Classification	423	(1)
Regional Value Content Requirement	424	(1)
Goods with Minimal Amounts of Non-North American Materials	425	(1)
Understanding the Mexican Tariff Schedules	426	(1)
The NAFTA Certificate of Origin	427	(1)
Standards and Technical Barriers to Trade	427	(2)
Marking and Labeling Rules	429	(1)
Items Not Requiring Marks	430	(1)
Trade in Goods: Sectoral Issues	430	(2)
Trade in Motor Vehicles and Parts	430	(1)
Special Rules of Origin for Automobiles	430	(1)
Trade in Textiles and Apparel	431	(1)
Trade in Agriculture	431	(1)
Government Procurement	431	(1)
Emergency Action to Protect Domestic Industry (NAFTA Safeguards)	431	(1)
Trade in Services	432	(3)
Financial Services	432	(1)
Transportation	432	(3)
The Trucking Environmental Snafu	435	(1)
Telecommunications	435	(1)
Cross-Border Investment	435	(4)
NAFTA's Investment Provisions	435	(1)
NAFTA's Open Investment Policies	436	(1)
Environmental Measures Applicable to Investments	436	(1)
Exceptions to the Investment Agreement	436	(1)
Protecting Investors from Expropriation	436	(2)
Investor Claims and Dispute Settlement Procedures	438	(1)
Other NAFTA Provisions	439	(2)
Intellectual Property Rights	439	(1)
Trademarks	439	(1)
Copyrights	439	(1)
Patents	439	(1)
Enforcement and Penalties	439	(1)
Environmental Cooperation and Enforcement	439	(1)
Labor Cooperation and Worker Rights	440	(1)
Antitrust and Competition Policy	441	(1)
Rights to Temporary Entry	441	(1)
Administration and Dispute Settlement	441	(3)
NAFTA Fair Trade Commission	441	(1)
Arbitral Panels	441	(1)
Antidumping and Countervailing Duty Cases	442	(2)
Extraordinary Challenge Committees	444	(1)
Assembly Plants and the Mexican Maquiladora	444	(8)
Mexican Customs Rules	445	(1)
Assembly Plant Tariff Treatment in the United States	445	(1)
The Mexican Maquiladora Industry	445	(2)
The Social Responsibility of U.S. Firms in the Maquiladora Industry	447	(5)
The European Union and Other Regional Trade Areas	452	(28)
The Philosophy of Economic Integration	452	(5)
Federal Model	452	(1)
Free Trade Area	453	(1)
Customs Union	453	(1)
Common Market	453	(1)
Compatibility of Trade Areas with the WTO and GATT	454	(3)
European Union	457	(15)
History	457	(1)
Treaty of Rome	458	(1)
1992 and the Single European Act	458	(1)
The Euro and Monetary Union: Maastrich Treaty	459	(2)
Treaty of Amsterdam (1999)	461	(1)
Treaty of Nice (2000)	461	(1)
Treaty Establishing a Constitution for Europe	461	(1)
Structure of the European Union	462	(1)
The Council	462	(1)
The Commission	462	(1)
The Court of Justice	463	(1)
The Parliament	464	(1)
European Central Bank	464	(1)
Distinction between Institutions	465	(1)
Harmonization: Directives and Regulations	465	(1)
Privacy	465	(3)
The Common Agricultural Policy	468	(3)
The Business Implications of the European Union	471	(1)
Other Regional Trade Areas	472	(8)
MERCOSUR: Southern Common Market	472	(1)
Caribbean Response to NAFTA	473	(1)
Andean Community of Nations	473	(1)
Free Trade in the Americas Area (FTAA)	473	(1)
Central American Common Market	474	(1)
African Trade Areas	474	(1)
African Economic Community	474	(1)
COMESA: Common Market for Eastern and Southern Africa	474	(1)
Southern African Development Community	474	(1)
U.S.--Israel Free Trade Agreement	474	(1)
APEC: Asia Pacific Economic Cooperation Group	475	(1)
CARICOM	475	(1)
Asean	475	(1)
Commonwealth of Independent States	475	(1)
Gulf Cooperation Council	476	(1)
Arab League	476	(1)
The Cotonou Agreement: Europe's Future Partnership with Developing Countries	476	(1)
The EU Generalized System of Preferences (GSP)	476	(1)
Europe and the African, Caribbean and Pacific Countries (ACP)	476	(1)
African Development Groups	477	(3)
The Regulation of Exports	480	(20)
History of Export Controls	481	(7)
The Development of the Legal Framework	481	(1)
The Export Control Act	481	(1)
The Export Administration Act	482	(1)
The USA Patriot Act	482	(2)
Multilateral Export Control	484	(1)
The Australia Group	484	(1)
The Purpose of Export Regulation	484	(1)
Antiboycott Provisions	485	(3)
Developments in the Law	488	(1)
Mechanics of the Law	489	(5)
License	492	(1)
Extraterritorial Application	492	(1)
Licensing Review Process	493	(1)
Deemed Exports	493	(1)
Foreign Availability	493	(1)
Export Management System	494	(1)
Diversion	494	(1)
Enforcement	495	(5)
Current Issues	497	(3)
Part Four Regulation of the International Marketplace	500	(211)
International Marketing Law: Sales Representatives, Advertising, and Ethical Issues	502	(21)
Regulation of Relationships with Representatives	502	(4)
Supersession of Agreement with Representative	503	(2)
Tax and Labor Regulation and Principal Liability: The Dependent--Independent Distinction	505	(1)
Regulation of Advertising Abroad	506	(6)
Truth in Advertising	506	(2)
Content-Specific Regulations	508	(4)
Marketing Considerations: The Nestle Infant Formula Case	512	(1)
The Foreign Corrupt Practices Act	512	(11)
Origins of the FCPA and Other Antibribery Measures	513	(1)
Structure of the FCPA	514	(1)
The Antibribery Provisions	514	(1)
The Accounting and Recordkeeping Requirements	515	(1)
The Department of Justice Review Process	515	(1)
Prudent Behavior for the U.S. Businessperson	516	(7)
Licensing Agreements and the Protection of Intellectual Property Rights	523	(28)
Reasons for Intellectual Property Transfer Arrangements	523	(1)
Intellectual Property Rights: Transfer Arrangements	524	(1)
Right to Use and Conditions of Use	524	(1)
Competitive Circumstances	524	(1)
Confidentiality and Improvements	524	(1)
International Protection for Patents, Trademarks, and Other Intellectual Property	525	(10)
Paris Convention	525	(1)
Patents	526	(1)
Trademarks	527	(1)
The War of ``Geographic Indications''	527	(3)
Geographical Indications under the Doha Development Agenda	530	(1)
Domain Name Trademarks	530	(1)
Copyrights	531	(1)
Trips	531	(4)
The Doha Declaration on Trips and Public Health	535	(1)
Government Policies in Emerging Nations	536	(2)
Policies Influenced by Marxist Ideology	537	(1)
Attitudes in Developed Nations	538	(1)
Continuing Trips Turmoil on Biodiversity	538	(1)
Nonenforcement of IPR Laws	539	(1)
The Mechanics of IPR Transfer Regulations	540	(4)
Prior-Approval Schemes	540	(4)
Notification--Registration Schemes	544	(1)
The Gray Market	544	(2)
The Nature of the Problem	544	(1)
Resolution of the Dispute	545	(1)
Franchising: Licensing Outside the Technological Context	546	(5)
Host-Country Regulation: Corporate Law, Taxation, and Currency Risk	551	(19)
Host-Country Corporate Law Affecting Foreign Investment	551	(1)
Minority Ownership Investments	552	(5)
Passive Debt Investments	552	(2)
Passive Equity Investments	554	(1)
Active Investments	555	(1)
Local Assistance	556	(1)
Majority Ownership Interests	557	(7)
Establishing a Foreign Branch or Subsidiary	557	(1)
Tax Issues Associated with Foreign Branches and Subsidiaries	557	(1)
Foreign Tax Credits	557	(3)
Taxation of E-Commerce	560	(1)
Transfer Pricing	560	(3)
Foreign Sales Corporations	563	(1)
Laws Prohibiting Foreign Control	563	(1)
Effects of Prohibition of Control	564	(1)
Controlling Currency Risk	564	(6)
Minimizing Fluctuation Risk: Currency Swaps	565	(1)
Arrangements with the Soft-Currency Country	565	(1)
Payment and Price Adjustment Approaches	566	(1)
Structuring of Hard-Currency Obligations and Revenues	566	(1)
Countertrade	567	(1)
Informal Consortia or Parallel Exchanges	567	(1)
Inconvertibility Insurance	567	(3)
Nationalization, Expropriation, and Privatization	570	(30)
Theories Relating to Takings of Foreign Property	570	(5)
The Traditional Theories	570	(1)
Non-Western Theories of Takings	571	(2)
Public Purpose, Nondiscrimination, and the Expropriation--Nationalization Distinction	573	(1)
Level of Compensation	573	(1)
Creeping Expropriation	574	(1)
Guarding Against Political Risk	575	(11)
Political Risk Insurance	575	(1)
Political Risk Insurance from Government Agencies	576	(1)
Private Political Risk Insurance	577	(1)
Resolving Investment Disputes with Foreign Nations	577	(1)
The Foreign Sovereign Immunities Act	578	(4)
Acts of State Doctrine	582	(1)
International Adjudication	582	(4)
Historical Development of Privatization	586	(1)
Preparation for Privatization	587	(2)
The Creation and Organization of an Independent Government Corporation	587	(1)
Preparation of a Legal System for Privatization	587	(1)
``Clearing'' of Expropriation Claims	587	(1)
Property and Contract Law	588	(1)
Methods of Distribution	588	(1)
Private and Public Equity Placements	588	(1)
Voucher Systems	588	(1)
Debt-for-Equity Swaps	589	(1)
Models of Privatization	589	(11)
Sale of a Noncontrolling Interest	589	(1)
The Trade Sale	590	(1)
Advantages and Disadvantages of the Trade Sale	591	(1)
The Sale to Employees	591	(2)
Concessions: BOTs and BOOs	593	(1)
BOTs and BOOs	593	(1)
The Concession and Anticompetitive Considerations	593	(1)
Advantages and Disadvantages of the Concession	594	(1)
The Models in Combination	595	(1)
The Joint Venture Privatization	595	(1)
Example of Privatization Mixing Models	596	(4)
Labor and Employment Discrimination Law	600	(22)
General Directions of Labor Law Abroad	600	(3)
Employee Participation in Strategic Decisions	600	(1)
The U.S. View	600	(1)
The German Approach	601	(1)
Mandatory Employee Representation on Boards of Directors	601	(1)
Impediments to Dismissal	601	(1)
Underlying Philosophical Foundations	601	(1)
Legal Frameworks Reflecting Philosophy	602	(1)
Assumption of Employment Arrangements	602	(1)
Employment Discrimination Outside the United States	603	(12)
The Extraterritorial Application of U.S. Employment Discrimination Law	603	(2)
Control by a Foreign Person	605	(3)
The Foreign Compulsion Defense	608	(1)
The Bona Fide Occupational Qualification Defense	609	(1)
Antidiscrimination Laws Outside the United States	609	(1)
Discrimination Based on National Origin or Religion	610	(2)
Discrimination Based on Gender	612	(3)
Foreign Laws Permitting Difficult Work Conditions	615	(7)
Unsafe Labor Conditions	616	(1)
Prison Labor	616	(1)
Child Labor	617	(1)
Consequences of Participation in Illegal or Harsh Work Conditions	617	(5)
Environmental Law	622	(25)
Consideration of Varying Environmental Requirements	622	(2)
Differences in Regulatory Schemes	622	(1)
Environmental Law as an Anticompetitive Tool	623	(1)
Traditional International Remedies	624	(10)
The Polluter Pays: Responsibility for Pollution	624	(1)
Regulation of Products that Violate Environmental Objectives	625	(1)
Regulation of Products with Environmentally Objectionable Production Processes	625	(2)
Litigation Against Polluters in an Affected Country	627	(2)
Litigation Against Polluters in Polluter's Home	629	(5)
Inadequacies of the Traditional International Pollution-Control System	634	(1)
Emerging Problems and Solutions	634	(13)
Regional Approaches	634	(1)
National Constraints on Exports	634	(2)
North American Environmental Treaties	636	(2)
European Union Environmental Initiatives	638	(1)
Regional Marine Treaties	639	(1)
Developments in South Asia and the South Pacific	639	(1)
Developments in Eastern Europe and Central Asia	640	(1)
Initiatives by Multilateral Agencies	640	(1)
Global Solutions	640	(1)
The World Trade Organization	641	(1)
Global Ban on Toxic Substances	641	(1)
The Basel Convention	642	(1)
The Convention on International Trade in Endangered Species	643	(1)
The Montreal Protocol	643	(1)
The Climate Control Convention	643	(1)
General Prospects for Global Environmental Solutions	644	(3)
Regulating the Competitive Environment	647	(64)
Historical Development of International Competition Law	647	(1)
Basic Regulatory Framework	648	(6)
Prohibitions Against Agreements to Restrict Competition	648	(1)
Abuse of Dominant Market Position	649	(1)
The EU Merger Regulation	649	(5)
Distinctions of Non-U.S. Competition Law	654	(3)
Private Causes of Action for Damages and Criminal Prosecution	654	(1)
Article 81(3) and the Rule of Reason	655	(1)
Preapproval Procedures Versus Litigation	656	(1)
Extraterritorial Effect of Competition Laws	657	(12)
The U.S. Effects Test	657	(7)
The European ``Implementation'' Test	664	(1)
Blocking Legislation	664	(5)
Appendices
A United Nations Convention on Contracts for the International Sale of Goods	669	(14)
B The General Agreement on Tariffs and Trade	683	(6)
C Multilateral Agreements on Trade in Goods (Selected Provisions)	689	(6)
D General Agreement on Trade in Services (Selected Provisions)	695	(2)
E Agreement on Trade-Related Aspects of Intellectual Property Rights	697	(6)
F North American Free Trade Agreement	703	(8)
Index	711