The Fundamentals of International Business

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THE FUNDAMENTALS OF INTERNATIONAL BUSINESS
1- The fundamental of international biz
Object: product for exchange (tangible; intangible)
- Tangible: something we can touch or use it immediately (furniture, electronic appliance) - Intangible: trademark intellectual propriety right
2- Main part: people who conduct a biz exchange
3- Biz activities: Transfer of cargo and its ownership (buy your own car) or right of use (be a diver). International Biz law
Role: it is to adjust the biz relationships among the biz parties in the course of their biz activities. Slight violation (paying late the rent fee)
Fundamental violation (a landlord Who closes his locator shop without the permission of the law) Two legal systems (Anglo- American law France UK or USA; The Roman- Germany; civil low France Germany China) Different point

- The UK or USA same judgment, similes case
- Germany or France (judgment based on law regulation)
Similes case different judgment is made as the law is exchanged The biz law in two forms (Biz law is the part A; civil law is B; biz law is separated from civil law (Japan, Spain, china) ) Case study:

Billionaire + distribute his property
Stake of corporation: biz low (violate, you could go to jail) Jewelry, individual bank: civil law (violate the civil law u pay the victim) The regulation of setting up business contract
The process of Biz activity (enquiry—counteroffer – acceptance) Enquiry: (ask for information, price…) no legal
Offer (with legal effect)
Exporter (supplier) – response to enquiry – importer (buyer) To the offer, it must respect the following conditions
1- Make offer to specific person or group
2- To offer later, it must contain the conditions or terms of biz in clear way Terms {nature of commodity (quality, price, quantity…) Date of transport (load delivery ) transport tool ( FOB, CIF, CFR )} Date of load: date of cargo loaded on ship at port of loading (Supplier Date of Delivery: date of receiving the cargo from ship at port of destination (import) FOB: free on board (insurance for transport covered by importer) favorable to import CIF: insurance for transport covered by exporter “favorable to export” CFR: Transport paid by Exporter and insurance covered by importer. How to solve the biz disputes (negotiation, if it fails apply arbitration with law suit) 3- It clearly show that supplier meet the commitment after buyer accept the offer. 4- Offer must deliver in a suitable form (writing instead of oral) The process of biz activities

Acceptance (-without condition – if it is with condition, it is regardless as counteroffer) To the acceptance, it must be in accordance with the following conditions: 1- It must be made by designated person or group

Exporter – make offer --- potential importer
2- accept all the terms or conditions without any change
3- acceptance must be made before date of expiration set by offer letter Exp: offer letter. Date of expiration: September 5
Acceptance must be made before or on September 5
Acceptance after September 5: export (reject, agree)
The acceptance latter takes legal effect just after the customer received it. The customer must sign the acceptance before the expiration date if not the closes of the transportation are cancel Offer letter can be withdrawn but can’t be canceled!!!!!

Terms of International Business Contract
- Concerned parties: Import Intermediate
Intermediate on behalf of exporter sign contract with importer. If the intermediate violate the terms of contract, the exporter will cover the loss. -Commodities (name, quantity, packing, terms of shipment, price, terms of payment, how to solve business disputes) The measure of recovery after violation.

- Fundamental violation
Violation produces heavy loss shouldered by other concerned party 1-Exporter --- after receiving money never ships the cargo Importer --- after receive cargo never pay
2-The product doesn’t meet the customer demand...
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