TEXT, AND READING ON INTERNATIONAL BUSINESS LAW

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This article is written by Nikita Paul of 2^nd Semester of Adamas University, School of Law and Justice

ABSTRACT

International business law includes international trade and commerce to promote business all over the world. These laws regulate foreign companies as well as the law provide tax rates, shipping process and payment process in a trade transaction. All countries have its own set of laws for regulating business. These laws have two main categories – international private laws and international public law. Private laws connect two individuals of different legal system. It also reduces trade transaction costs between two parties from different legal cultures. Countries can negotiate and compromise between sovereign rights. It helps us to create a lawful agreement without any coercion over states. Inefficient laws and regulations will be a disincentive to trade and production investment.

Keywords: – international business, business law, international business law, trade.

INTRODUCTION

International business deals in a broad manner. It refers to the trade of goods and services, technology, capital across international borders and at a global scale. It involves cross border transaction of goods and services between two or more countries or at global level.

International business law is the body of all laws that refers all transactions among the countries. It provides confidence to every parties who conduct business international investments, shipping contracts, negotiations between countries over trade agreements, cross border transaction, taxation.

Basically, the international business law is not confined to selling or buying of products or services, other aspects like funds, trademarks eta which affect a business and these are regulated by international business law. Although global economy mainly depends on international business. This business is regulated by some customs and laws. International business law is being used to boost the business transaction with other countries. It’s including some authorities such as

Organization for economic cooperation and development (OECD)
World intellectual property organisation (WIPO)
International monetary fund (IMP)

WHAT IS INTERNATIONAL BUSINESS?

At first, we should Know about international business. It conducted across the national borders. It provides all resources that are related to business field or needed to produce a company’s good or services, such as:

People
Skills
Capital

Business must be aware of not only the laws of domain but also should Know about that countries laws in which it does business.

WHAT IS BUSINESS LAW?

Business law is also known as commercial law. Business law related to commercial transactions, e.g., a retailer opens a business, he should follow some rules and Regulation which is related to that business, including how organised and how to hire and pay employee, how to ship merchandise. Business law vary based on the type of business, such as public, private, generate partnerships and corporate.

TYPES Of INTERNATIONAL BUSINESS LAW

There are three different types of international law. They are –

Public international law it is the law and regulations are to be used for translation between different countries.
Private international law refers transaction between private parties across the world.
Foreign law is passed by a foreign country but is apply to any international companies or persons doing business in that country.

SOURCES OF INTERNATIONAL BUSINESS LAW

Bilateral treaties – It basically happen between two countries where, they promising to each on a set of terms and conditions or make a contract to assist business.
Multilateral treaties – This treaties refers to terms and conditions as a group in each other’s domestic domain.
International commercial practice – The present day which prevails in the absence of any established laws with regards to business.

HOW INTERNATIONAL BUSINESS LAW WORKS

It is referring to certain rules and regulation or laws in a broad scale. The law must also be enforced by either criminal or civil law cases brought to courts of needed.

Generally, we know that international business law is exporting it’s goods for sale in a different country. So, the exporting company must be following all laws which is including domestic, international and foreign regulations. E.g., a country the manufacturer operates in could limit exports of a certain product, especially if the product is used by the government itself or the export limits could apply to a specific country. Similarly, the importing county cloud limit the imports for a variety of reasons. The international law contract will also likely cover which currency should be used for payment.

IMPORTANCE OF INTERNATIONAL BUSINESS LAW

Before I start, it is important to know that the essence of international business law is a law that practice and deals with the law of global scale. It has various impact across different jurisdiction. It covers issues such as economic, international commercial transactions and taxes etc. This law builds on the basic components in business law and expands them to international Market.

International business laws affect a company’s operations. It actually focuses on what, where and how goods are produced, shipped, sold and transfer from another countries. Although it is important as it explains how different legal system operate in different countries. Basically, on global market or conduct a business in a globalised by providing legal advice. It also helps us to understand the importance of complying with the laws of other countries. The laws are help us to form any damages or penalties. It consists of a body of legal rules, conventions, treaties domestic legislation and commercial customs that governs international business law.

HOW INTERNATIONAL BUSINESS LAW AFFECTS TRADE

Today’s world is more focuses on globalisation rather one nation policy. The policy of globalisation effects on business and trade policy in a broad manner. Countries are engaged themselves in a business field. The scale of business is not limited to one nation. While it is international, they are inter depending. While international business controlled by certain rules, regulations, customs and law. All countries have different laws and treaties on business and these treaties are followed by internationally. The laws established to protect the economy of a country to preserve their social, economic, cultural, political environment.

Government of a country can control business relationship globally, like taxation laws, import- export polices, free trade zone, limited trade policy and so on. Countries have different legal customs such as – China, is a communist country, government strictly controls all business sector laws. Similarly, Indian has democratic government where the business sector laws are made to protect small business and consumer. In India’s law is divided into three parts –

Civil law
Common law
Regional law

Countries like India, USA, Australia is followed common law system where, Germany, France, Russia and Pakistan are following civil law system. Now we understand that how international business law affects trade in bellow:

TAXES

If we noticed an economic condition of a nation or budget of a country, totally depends on taxes of companies. When it comes to taxes, the companies should do their homework well. Profits, manufacturing or selling, price of products, to how much and how taxes should be charged these all are regulated by the law either charge extra tax, the business must follow the standard set by the law. Companies like that location of business where the government charged lower taxes rate on income, capital gain and dividend income. Thus, most of the companies to set up office in the country and enjoy it’s lowest corporate tax rate.

INTELLECTUAL PROPERTY

We know that, intellectual property (IP) law refers to patents, trademarks, copyrights and trade secrets. These are valuable assets of any company and understanding how they work and how they are created is critical to knowing how to protect them. Every business needs to protect their skills. Government established several acts and international convention which protect international business and solves issues if any arise. Many international treaties formed to protect international business and trade such as, Paris convention for the protection of industrial property, the United Nations convention on contracts for international sale of goods.

INFRASTRUCTURE

Infrastructure is another important pillar of any successful business. Not only infrastructure a company use to cheap sources of raw material and to get huge profit margins. International business law exist that regulate international shipping, export and import duties.

LABOUR LAW

When we discuss about global or international business, labour laws are also included. Cheap labour attracts foreign investment into a country. Labour laws exist to protect human resources from any explanation. Most of the industries are shifted their manufacturing operations to Asian countries they provide cheap labour. International labour law that is embodied in its conventions, recommendations and the documents that emanate from the supervisory mechanism responsible for applying those international labour standards. Sources of international business law, in modern day trade and business law in international zone.

WHAT DO INTERNATIONAL BUSINESS LAWYER DO?

An advocates advice and represents a client’s business interests and issues internationally. An international business lawyer must be a licensed lawyer. It should have proper knowledge and skills regarding the laws of different countries, policies of different countries, agreement and treaties among the countries. One of the main duties of a business LLB attorney is to save a company money. Such as, proper structuring of business operation, another is protecting a company from facing potential liability.

CONCLUSION

Everything depends upon on certain rules, regulations and limitations, traders widely agree to follow these laws and customs. Countries make agreement between them with the help of international business law. The law means to provide one common treaty that every country agreed to follow. International business law not only for external affairs but also for international issues about business field, it helps us to grow nation’s GDP. It includes many organisations. Traders are aware of different rules and laws to have successful businesses. International business law has many aspects including legal, cultural and traders facing lots of diplomatic challenges affecting their respective businesses, such parties should also examine the effectiveness and applicability of different international trade.

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