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Business law is a field that encompasses different aspects of commerce1. The field focuses on laws that govern how businesses are managed, stated, or transferred from one party to another. Businesspeople should, therefore, be aware of the existing laws to have successful entrepreneurial activities. Business law, therefore, embraces most of the concepts associated with civil law. It also deals with both public and private laws. This law applies to the relations, rights, and involvement of parties engaged in different trade activities. According to Cuniberti, international business law is a field that outlines conventions, rules, and treaties that govern international business or commercial transactions (14).
This means that the targeted business transaction is undertaken by two or more nations. International regulations are requirements dictating the operations of different organisations and nations at the global level. Such regulations are usually put in place to ensure different groups, individuals, and organisations are held accountable for their business engagements. This essay will, therefore, discuss the importance of various international regulations and describe how international business law has realised its aims. The essay will also outline the legal, cultural, and diplomatic problems in international business law.
Business organisations engaged in international trade should follow various regulations and control measures. The United Nations (UN) and other nations impose international regulations and trade control to achieve several goals2. For instance, such international regulations are used to promote foreign policies, protect the national securities of specific nations, and improve the performance of domestic economies. Such regulations will affect the exportation and importation processes of different products. International business laws also have the potential to affect human travel, imports, financial transactions, and business investments. It is therefore notable that different players are forced to follow such restrictions whenever doing business in a specific region or country. As well, different licensing requirements are put in place to ensure every international business activity is executed ethically. International business experts believe strongly that the existence of regulations is something critical towards dealing with different global issues.
The case Kiobel v Royal Dutch Petroleum (10-1491)3 explains why the Alien Tort Claims Act4 does not apply extraterritorially. Environmental protection (EP) laws have been put in place to deal with issues such as climate change and pollution. Companies engaging in several global business operations are required to promote the best practices that can safeguard the integrity of the natural environment. For instance, the International Environment Protection Act of 19835 was implemented to guide and support the environmental issues undertaken by different nations across the globe. It is also agreeable that international business law has managed to achieve some of its aims and objectives6.
For example, business entities can engage in sustainable practices thus promoting the integrity of the natural environment. The UN and other international bodies have managed to protect different stakeholders through the use of international business laws7. The fact that many companies have initiated new ethical principles is a sign that such laws are significant for international business.
According to experts, international business law has led to several cultural, legal, and diplomatic problems. To begin with, corporations engaged in international businesses encounter numerous legal complexities. Legal disputes occur whenever specific parties fail to honour certain regulations. Some international bodies might outline unethical policies or regulations. Some domestic lobbies might be powerful thus affecting the performance of other players8. Several traders might also engage in dishonest declarations and business malpractices. Violation of domestic regulations might also increase. Picciotto argues that “two or more regulations might result in conflicts of interest thus affecting the arbitration process” (p. 139).
New legal challenges might arise due to issues such as specification, value, quality, licensing, state policies, and contractual obligation. This knowledge encourages individuals engaging in international business operations to examine various legal aspects and regulations9. Diplomatic problems also arise whenever two or more nations encounter an international trade dispute. Disputes might arise when there is a conflict of policy between two or more countries. Similar disputes might also occur when some trade actions become impractical. The case Gilbert v. Burnstine10 was decided by a New York court thus becoming the first authority whereby arbitration awards were made in a foreign nation. Sometimes it becomes impossible to apply a set of international business regulations or standards.
Such issues will, therefore, call for diplomatic interventions. International trade brings together many individuals from diverse backgrounds. Although such parties are governed by different international trade policies, it is agreeable that a set of cultural problems are inevitable. For instance, language problems might arise thus making it impossible for different players to achieve their business potentials. Culture collisions and pricing issues also affect the success of different international trade practices. Corruption, religious views, and government’s involvement are some cultural issues that have continued to affect the integrity of international businesses11.
In conclusion, international traders should be aware of different regulations and laws to have successful businesses. They should be ready to tackle various cultural, legal, and diplomatic challenges affecting their respective businesses12. Such parties should also examine the effectiveness and applicability of different international trade regulations.
Bibliography
Bethlehem, D., The Oxford Handbook of International Trade Law, Oxford, Oxford University Press, 2009.
Cuniberti, G., ‘The Laws of Asian International Business Transactions’, Pacific Rim Law and Policy Journal, vol. 25, no. 1, 2016, pp. 1-24.
Gilbert v Burnstine [1931] 255 NY 348 (Ch) [706]-[794].
Kiobel v Royal Dutch Petroleum [2012] US 102 (Ch) [10]-[1491].
Nayler, P., Business Law in the Global Marketplace: The Effects on International Business, New York, Routledge, 2006.
Park, W., Arbitration of International Business Disputes: Studies in Law and Practice, Oxford, Oxford University Press, 2012.
Picciotto, S., ‘Rights, Responsibilities and Regulation of International Business’, Columbia Journal of Transnational Law, vol. 42, no. 1, 2003, pp. 131-151.
Steinitz, M., ‘The Case for an International Court of Civil Justice’, Stanford Law Review, vol. 1, no. 1, 2014, pp. 1-16.
Waincymer, J., ‘Legal Issues in Trade and Investment’, International Economics, Finance and Trade, vol. 2, no. 1, 2010, pp. 1-6.
Wenger, J., ‘International Economic Law’, Economic Resource Guide, vol. 1, no. 1, 2015, pp. 1-37.
Footnotes
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See G. Cuniberti, ‘The Laws of Asian International Business Transactions’, Pacific Rim Law and Policy Journal, vol. 25, no. 1, 2016, p. 14.
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See J. Waincymer, ‘Legal Issues in Trade and Investment’, International Economics, Finance and Trade, vol. 2, no. 1, 2010, p. 5.
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[2012] US 102 (Ch) [10]-[1491].
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See also W. Park, Arbitration of International Business Disputes: Studies in Law and Practice, Oxford, Oxford University Press, 2012.
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See J. Waincymer, ‘Legal Issues in Trade and Investment’, International Economics, Finance and Trade, vol. 2, no. 1, 2010, p. 3.
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See also Kiobel v Royal Dutch Petroleum [2012] US 102 (Ch) [10]-[1491].
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See J. Waincymer, ‘Legal Issues in Trade and Investment’, International Economics, Finance and Trade, vol. 2, no. 1, 2010, p. 3.
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See P. Nayler, Business Law in the Global Marketplace: The Effects on International Business, New York, Routledge, 2006, at page 83.
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W. Park, Arbitration of International Business Disputes: Studies in Law and Practice, Oxford, Oxford University Press, 2012.
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See Gilbert v Burnstine [1931] 255 NY 348 (Ch) [706]-[794].
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See also J. Wenger, ‘International Economic Law’, Economic Resource Guide, vol. 1, no. 1, 2015, p. 19.
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See Chapter 5 D. Bethlehem, The Oxford Handbook of International Trade Law, Oxford, Oxford University Press, 2009.
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