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1、Chapter 12Laws Affecting International Business and TravelCopyright 2014 Pearson Education, Inc.2TopicsHome Country and Host Country LawsContractsEthics and the LawInternational LawsGlobal PatentsNonwritten LawInternational Travel and LawCopyright 2014 Pearson Education, Inc.3The world has numerous

2、laws that affect international business.When a company is engaged in international business, what the company representatives can legally do is controlled by both their nation and the foreign nation with which they wish to conduct business.Copyright 2014 Pearson Education, Inc.4TermsAct of State Doc

3、trine - Each country can do as it wishes within its own boundaries.Home Country Laws - Laws, treaties, or acts that govern business within your own country (and those governing business with other countries).Host Country Laws - Laws, treaties, or acts that govern business within the foreign country

4、with which you wish to conduct business.Copyright 2014 Pearson Education, Inc.5Legal Requirements that Govern U.S. Citizens Actions During NegotiationsAntidiversion Requirement - Bill of lading and invoice must clearly display that the carrier cannot divert the shipment to a country the U.S. governm

5、ent considers restricted.Copyright 2014 Pearson Education, Inc.6Antiboycott Regulations - Prohibits U.S. companies from participating in boycotts between two foreign countries by refusing to do business with a friendly nation to comply with a foreign boycott.Antitrust Laws - Designed to ensure fair

6、competition and low prices to U.S. consumers; these laws affect exporters in such areas as mergers and acquisitions of foreign firms, raw material procurement agreements, knowledge licenses, distribution channels, etc .Copyright 2014 Pearson Education, Inc.7Written Information LawsThe Export Adminis

7、tration Act of 1985 - requires federal licensing of technical information in business correspondence.The Arms Export Control Act of 1968 and Trading with the Enemy Act of 1917 - prohibit the transfer of information on military material or defense-related materials.The International Emergency Economi

8、c Powers Act of 1977 - governs information that is research oriented from being communicated to foreigners.Copyright 2014 Pearson Education, Inc.8Technology LawsThe World Intellectual Property Organization (WIPO) of the United Nations promotes intellectual property rights worldwide and currently adm

9、inisters 23 treaties for 185 member nations.Copyright 2014 Pearson Education, Inc.9Technology LawsBerne Convention Implementation Act of 1988 - recognized the copyrights of all the signatory nations to the act; 165 countries were signatories in 2011.Madrid Convention - trademarks are protected by th

10、e 35 countries that are signatories. (The U.S. is not a signatory.)Copyright 2014 Pearson Education, Inc.10Employment LawsMost nations have legislation governing wages, hours, union-management relations, residence visas, and work permits.Some nations require a certain ratio of nationals to foreigner

11、s.Legal questions that may be asked of a potential employee differ by country.Copyright 2014 Pearson Education, Inc.11Maquiladora LawInternational maquiladora program in Mexico allows the duty-free import of equipment, machinery, and materials to assemble parts of products that are then returned to

12、the home country.Presidential Decree for the Development and Operation of the Maquiladora Industry Program of 1983Copyright 2014 Pearson Education, Inc.12The U.S. Tariff Code allows the final product to be brought into the country with only the final value added to the goods being taxed.An important

13、 consideration in this program is the difference in form of law. The U.S. (except Louisiana) practices common law (based on what has been traditionally accepted as right over many years); Mexico practices civil law (body of laws of a state or nation related to private matters). The difference is tha

14、t civil law rather than precedent is considered during litigation.Copyright 2014 Pearson Education, Inc.13International LawInternational Court of Justice (also known as the World Court) - body of the United Nations that provides a way to settle international disagreements between countries rather th

15、an corporations. The three legal bodies in the United Nations are: United Nations Commission on International Trade Law (UNCITRAL), The International Commission, and the Sixth Committee of the General Assembly.Copyright 2014 Pearson Education, Inc.14A movement by institutions concerned with internat

16、ional business has encouraged the development of agreements and laws that are uniformly accepted in world trade. These institutions are:International Chamber of CommerceInternational Commercial Terms (Incoterms)ECE Standard ConditionsThe Hague ConventionThe Vienna AgreementCopyright 2014 Pearson Edu

17、cation, Inc.15Quasi-international Law - rules for the relationship between legal entities and states that do not have national status, such as private corporations.Sanctions prohibit U.S. companies from doing business in targeted countries. When the U.S. government does not approve of a countrys pol

18、icies, they implement sanctions to try to reform the country.Copyright 2014 Pearson Education, Inc.16Macaulays Thesis - considers long-term relationship more important than contracts.Thematization - process by which a framework for mutual communication and satisfaction is reached; process could be r

19、elated to the law, economies, power, or religion.Copyright 2014 Pearson Education, Inc.17Governance StructuresMarket governance - contract basedTrilateral governance - adds an arbitratorBilateral governance - may not spell everything out but implies a continuing relationshipUnified governance no det

20、ails are negotiated in advance; maximum flexibility is provided - only one party sets terms for both parties; appropriate for subsidiaries of a single organizationCopyright 2014 Pearson Education, Inc.18ContractsContract - an agreement between parties to do something that is oral, written, or implie

21、d through conduct.How are contracts viewed in the U.S.? Very important; oral contract is legally enforceable.Copyright 2014 Pearson Education, Inc.19How are contracts viewed in Japan? May be made verbally, in writing, or by conduct but are always open to renegotiation.How are contracts viewed by the

22、 Russian Federation? In the past little need existed for contracts; goods were allocated and firms accepted what was sent. This practice is now changing, but they still have problems with the concept.Copyright 2014 Pearson Education, Inc.20Global PatentsCompany files patent application with the U.S.

23、 Patent office; limitation to file abroad is one year from the date of the U.S. application.Patent Cooperation Treaty - when patents are filed in other countries, the new patents claim priority to the date on the U.S. patent thus prevailing over competing rights of other investors.Treaties override

24、all other domestic laws; nations need to be aware of their sovereignty and remember that treaties should be based on good science, rather than on wishful thinking or bad politics.Copyright 2014 Pearson Education, Inc.21Unwritten LawUnwritten business laws are called drawer regulations in Brazil beca

25、use they operate from unwritten operational codes rather than laws. Many drawer regulations are disappearing with countries joining free trade markets.In high-context cultures (Japan), little emphasis is given to the written word; the situation would determine whether to adhere to the law. Oral agre

26、ements would be considered binding, and written contracts would be considered flexible.Copyright 2014 Pearson Education, Inc.22Ethics and the LawprofitcompetitionjusticeadvertisingFour motivations for unethical conduct in business:Copyright 2014 Pearson Education, Inc.23The three dimensions of negot

27、iation ethics are:Means/ends measured by utilityRelativism/absolutism considers two extremes: either everything is relative or everything is without deviation from the ruleTruth telling considers whether concealing information, conscious misstatements, exaggeration, or bluffing during negotiations i

28、s dishonestCopyright 2014 Pearson Education, Inc.24Laws Related to Ethicsin BusinessForeign Corrupt Practices Act of 1977 - requires U.S. companies to account for and report international transactions accurately and prohibits bribes (including gifts and entertainment) that are used to gain a busines

29、s advantage.Copyright 2014 Pearson Education, Inc.25The Doctrine of Sovereign Compliance - an international legal principle that can be used as a defense in your home country for work carried out in a host country when the two countries legal positions are different.Export Trading Company Act of 198

30、2 - allows companies that normally would not be allowed to participate in joint ventures to develop trading companies similar to those in Britain and Japan (e.g., GM, Ford, and Chrysler make parts with European and Japanese car manufacturers to jointly produce and sell cars).Copyright 2014 Pearson E

31、ducation, Inc.26Legal and Ethical Practices are Viewed DifferentlyThe word contraband in the U.S. suggests breaking the law by smuggling. In Latin America, however, the Spanish word is contrabando (from the word contrabandido, which means against the bandits,) and is viewed in a positive way.Copyrig

32、ht 2014 Pearson Education, Inc.27International Travel and LawA Passport - proof of citizenship; need a copy of your birth certificate and current photos.Citizenship - the state of being vested with certain rights and duties as a native or naturalized member of a country.Visa - gives you the right to

33、 enter and stay in a country for a period of time for a specific purpose.Copyright 2014 Pearson Education, Inc.28Consulate - made up of individuals sent by the government to other countries to promote commercial interests of their home country.Customs Agents - enforce export and import laws of the c

34、ountry; have the right to search and confiscate anything you may have with you.Duties - import taxesCopyright 2014 Pearson Education, Inc.29Suggestions for International TravelRegister with the U.S. Embassy or consulate when you arrive.Turn to the Embassy or consulate for legal, medical, or financia

35、l problems.Contact the American Consul for a list of attorneys, to notify your family, and to protest any mistreatment. The Consul can visit you in jail but cannot get you released or provide for bonds or fines.Copyright 2014 Pearson Education, Inc.30Remember that you are subject to the laws of the

36、country while you are there.Register with the local authorities if you plan a prolonged visit. You may be asked to leave your pass-port overnight or to complete certain forms.Use authorized outlets for cashing checks and buying airline tickets; avoid the black market or street money changers that yo

37、u will see in many countries.Copyright 2014 Pearson Education, Inc.31Ask before you photograph anything to be sure it is permissible.Avoid these common infractions of the law: trying to take historical artifacts or antiquities out of the country, customs violations, immigration violations, drunk or

38、disorderly conduct, and business fraud.Obtain an International Drivers License if you need to drive. Travel agents can assist with this. Many countries require proof of insurance while driving.Copyright 2014 Pearson Education, Inc.32Do not deal in drugs; this is a serious offense in all countries, a

39、nd penalties can be much more serious than in the U.S., including death.Keep a list of credit card/travelers check numbers in a safe place in case they are lost or stolen.Obtain a copy of Safe Trip Abroad.Copyright 2014 Pearson Education, Inc.33Make a list of such useful telephone numbers as the U.S

40、. State Department, Amnesty International (New York), and the International Legal Defense Counsel (Philadelphia).Your health should be a concern; get a copy of Health Information for International Travel by the Center for Disease Control and Prevention.Be trustworthy, helpful, kind, friendly, courte

41、ous, obedient, cheerful, brave, and reverent.Copyright 2014 Pearson Education, Inc.34Country-Specific Travel TipsBrazil Passports are required and should be valid for six months from the date of entry. Since hotel accommodations vary widely, amenities should be confirmed. Public transportation inclu

42、des subways in larger cities as well as buses and taxis.Canada Since 9/11/01, passports for U.S. citizens entering from the U.S. or another country are required. Hotel accommodations in large cities are similar to those in the U.S. Public transportation systems in Montral and Qubec City are very goo

43、d.Copyright 2014 Pearson Education, Inc.35Country-Specific Travel TipsChina U.S. citizens need a passport and a visa. Hotel accommodations in large cities are available. Public transportation systems exist throughout the country. Bicycles are the main mode of transportation.Germany Passport required

44、, but U.S. citizens do not need a visa to travel in Germany for up to three months. No vaccinations are required. Hotel price generally includes a continental breakfast; heat may be an extra charge. Not all hotel rooms have a bath inside the room. Public transportation includes buses, trains, street

45、cars, subways, and taxis.Copyright 2014 Pearson Education, Inc.36Country-Specific Travel TipsJapan Passport needed, but no visa is needed for visits of less than 90 days. No vaccinations are required. Large cities have numerous Western-style hotels with private baths. Restroom facilities are usually unisex. Public transportation includes trains, subways, and buses. The “bullet train,” which runs between major cities,

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