Purpose : « conflict of law », to choose between two legal systems when two companies negotiate contracts from different countries. Possible option to the conflict of law is to slect arbitration which is a private legal system developed to provide international companies with suitable business solutions. The objectives for example are to avoid aconcellation of an international contract and propose to the partners some gentle agreement and partial excution of the contract. The majority of international companies will choose in advance a well known arbitration court such as ICC, LCA (London Court and Arbitration) or the US AAA (American Arbitration Association). ABL is also the way to regulate and harmonize foreign laws in terms of tax, customsand global business. WTO will negotiate quotas periods between the different countries to protect local économies such as Greece at the moment but will also act as an arbitrator between two markets such as Vietnam and South Carolina on textile business. WTO will also issue standards, norms and régulations to create a global market between the main countries giving the possibility to produce inthe EU. Finally IBL is absolutly essential to promote common grounds for international trade but also free business accords through the setting up of joint ventures, consortiums and holdings (including mother/parent company and subsidaries).
LEGAL BASIS OF IBL A. PUBLIC INTERNATIONAL LAW
UN = IMF, WB, WTO IMF is not only responsible for international finance but also for publishing theinternational business list ; it is a document which can be consulted online, is in fact a full report of the main business opportunities in the world giving all necessary détails about the level of corporation tax, the way to set up a company, the different trade and tax agreements between, for example, UN and Magreb countries, USA and Carabean countries and more recently China and Common Wealth.B. PRIVATE INTERNATIONAL LAW Free trade agreements and private investment policies. When an IB contract is negotiated the principal point raised by the seller and the buyer or producer and distributer will consern one choice of the suitable legal system such as : 1. CIVIL LAW A codified system also based on « case-law » (jurisprudence) and applicable in Europe form France to Russia and from Norwayto Portugal, Latin America, most of Africa, Middle East, some part of Asia. Main basis for EU la divided between EU institutions, EU
laws voted by the Parliament regulator immediatly applicable is all members states (directives : to be enforced in each national législation within two years) 2. COMMON LAW C.L The most developed system for international trade, due to its flexibility isuncodified as in UK for example. The English parliament will study projects or laws (=bills) before voting the final law (=act). In UK, the laws voted in London can be modified by indépendant parliaments such as the Scotish one. Common Law is also the instrument to develop business not only in UK but around the Common Wealth. We also find C.L in the USA but this time developed through the federalconstitution and 50 states constitution except in Louisiana mainly ruled by civil law. From the federal constitution the American have issued the necessary powers given to the exécutive included : president + vice president and legislative Congress house of representation / house of commons (UK) / senate (UK house of lords) Juridical suprem court / federal court A foreign investor doing business in theUSA must consider federal law first and pay attention to the state law where his business is taking place. For example, an Indian textile producer can export to the USA as much as he wants according to federal constitution, however the local authorities in South Carolina producing cotton can impose quotas against Indian importer textile to protect local economy. C.L also applies around the...