International business law - risks and foreign markets

Résumé du document

International business law is about the main legal risks we have making contracts all over the world. Knowing principal rules and risks, it is a right way to do business overseas. That is why this study about international business law is a good method to increase future international managers awareness to legal risk.

Today we live in a globalized world. It is not possible to avoid this phenomenon. Products we consume come from Asia, South America, Europe eastern etc… Globalization is the set of international exchanges. Each year, these exchanges go up. So, that is why it is important to introduce rules through international treaties, trade agreements or world organizations.

It is important to create a global system to support globalization exchanges. This global system's aim is to harmonize exchanges and solve dispute between businesses from different countries.There exist different methods to do business in a foreign country. For instance, you can choose to export directly or indirectly products in the foreign country. You can choose to make a foreign direct investment (joint ventures, subsidiaries…) or also to franchise.

Declining barriers to the free flow of goods, services and capital enables to increase globalization. Progresses in transportation and technology (i.e. internet connection) have a direct impact on globalization. In this context, firms have just one idea in mind: Enter in foreign market to develop their activity and increase profit. Companies inevitably have to expand it, to find costless solution to produce and make its profit increase.

Extraits

[...] several years.). You can use CISG to solve the dispute because the three conditions are respected. The contract involves the commercial sale of goods (French products) The parties to the agreement are located in different countries (Turkey and France) The principal place of business for each party is in a country that is a signatory to the CISG (Turkey, 2009) CISG convention avoids uncertainty of which country's law govern this dispute (France or Turkey). CISG also defines the breach of contract: “Failure to perform any promise that is part of a contract without a valid excuse.” Is the country a member of the World Trade Organization? [...]

[...] In this final assignment, we point up the role of international organizations in the globalization trades. The stake is to facilitate exchanges through a stable and consistent environment. So as you can understand in the case, Turkey wants to participate in the global trades and tries to attract foreign businesses or capital (through FDI) to develop its country. Indeed, Turkey's regulatory environment is more and more business friendly. Turkey organizes a real promotion about Turkish opportunities to do business through a web site dedicated[7] for example. [...]

[...] We will first study the different world organizations as CISG, WTO, and WIPO through the Turkish case. Then, we will analyze others type of risks (cultural, political and financial) in order to increase public awareness. Finally, after analyzing the different ways to set up a business in Turkey, we will select one and discuss the reasons of our choice and the legal risks associated with the method we selected. LEGALS RISKS Does Turkey have a common law or civil law system? First of all, we have to define what is law. [...]

[...] In addition, Turkey has manpower at low cost. In spite of good results, Turkey is a developing country with a lot weakness and a lot of opportunities. METHODS FOR ENTERING FOREIGN MARKETS Discuss whether the company should enter the foreign market via trade, international licensing of technology and intellectual property, or foreign direct investment? When you want to tackle a new market in a foreign country, you have to decide how to enter in this market and chose which strategy is more appropriate in terms legal risks for your business. [...]

[...] There are common law, civil law or Islamic law. Civil law is the most current legal system in the world. Each country has its own variation of these systems and can have a combination of these different legal systems (see map 1 on appendixes). Civil law system is based on codified elements written in several ready references. This system comes from Roman law. Unlike, common law is based on case law, rules and regulations administered by judges. It is the case in most of commonwealth countries like UK, US, India, Australia In the Turkey case, it was a choice of Ataturk, the founder of the actual state to replace the Islamic law (known as Sharia) by the civil law. [...]