International Business Transactions Outline
IBT OUTLINE—Karamanian, Spring 2008
I. Modern Forms and Patterns of IBT a. Types of IBTs, categorized by penetration: i. export-import transaction ii. agent or distributor sells goods abroad iii. licensing to a foreign entity to manufacture and distribute products abroad iv. Joint ventures b. Forms of Trade i. Goods ii. Services iii. FDI iv. Knowledge/Technology Transfer c. MNE i. DEFINITION: a number of affiliated businesses which function simultaneously in different countries, are joined together by ties of common ownership of control, and are responsible to a common management strategy. From the headquarters company (and country) flow direction and control, and from the affiliates (branches, subsidiaries and joint enterprises) products, revenues, and information. ii. Reasons why MNEs are so important to IBTs 1. Provide capital, know-how, and access to foreign markets for host country, thereby increasing export competitiveness 2. FDI tied to MNEs 3. MNEs own lots of IP d. Intl Forums and Institutions i. UNCITRAL 1. UN Commission on International Trade Law 2. dedicated to formulizing modern rules on commercial transactions and to furthering the harmonization and unification of the law of international commerce. 3. CREATES TREATIES, e.g. CISG 4. CREATES MODEL LAWS, e.g. UNCITRAL Arbitration Rules ii. UNIDROIT (International Institute for the Unification of Private Law) iii. International Chamber of Commerce (ICC) 1. UCP—Uniform Customs and Practice for Documentary Credits 2. Court of Arbitration 3. Incoterms II. International
I. Modern Forms and Patterns of IBT a. Types of IBTs, categorized by penetration: i. export-import transaction ii. agent or distributor sells goods abroad iii. licensing to a foreign entity to manufacture and distribute products abroad iv. Joint ventures b. Forms of Trade i. Goods ii. Services iii. FDI iv. Knowledge/Technology Transfer c. MNE i. DEFINITION: a number of affiliated businesses which function simultaneously in different countries, are joined together by ties of common ownership of control, and are responsible to a common management strategy. From the headquarters company (and country) flow direction and control, and from the affiliates (branches, subsidiaries and joint enterprises) products, revenues, and information. ii. Reasons why MNEs are so important to IBTs 1. Provide capital, know-how, and access to foreign markets for host country, thereby increasing export competitiveness 2. FDI tied to MNEs 3. MNEs own lots of IP d. Intl Forums and Institutions i. UNCITRAL 1. UN Commission on International Trade Law 2. dedicated to formulizing modern rules on commercial transactions and to furthering the harmonization and unification of the law of international commerce. 3. CREATES TREATIES, e.g. CISG 4. CREATES MODEL LAWS, e.g. UNCITRAL Arbitration Rules ii. UNIDROIT (International Institute for the Unification of Private Law) iii. International Chamber of Commerce (ICC) 1. UCP—Uniform Customs and Practice for Documentary Credits 2. Court of Arbitration 3. Incoterms II. International