Top-Rated International Business Law Essay Sample for Students

Published: 2022-04-01 02:13:21
Top-Rated International Business Law Essay Sample for Students
Type of paper:  Essay
Categories: Business law International business
Pages: 4
Wordcount: 826 words
7 min read
143 views

Modern society has achieved progress largely due to commerce and business processes. The desire to earn money motivates people to enter into alliances and agreements to create a favorable environment for exchanging goods and services. But the laws of many countries are quite different from each other, so politicians have decided to create International Business Law (IBL) or a set of rules that govern international economic relations. Such an initiative has become a springboard for structural and economic changes.

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What Is IBL and Why Is It so Important?

Trade is an incentive to unite nations for the mutually beneficial exchange of goods, services, and resources. That is why the World Trade Organization (WTO) was formed. This organization has become a springboard for creating international laws, acts, and agreements to establish trade flows. In a way, IBL is a path to progress and the opportunity to receive important resources, goods, and services.

Map of WTO members

But why is such a set of laws so important in the modern world? First, let's look at countries with strong economies and multi-billion dollar trade contracts. For example, China produces a lot of chips, gadgets, household goods, and textiles but cannot maintain such an economy without the United States. The United States imports many Chinese goods but supplies high-precision electronics, without which Chinese factories will not be able to work for a long time.

As you can see, the trade partnership is mutually beneficial for many countries. That is why transparent trading conditions and guarantees are needed for each market participant. No one wants to lose money or receive fewer goods than planned. That is why IBL allows you to control all aspects of international transactions and clearly articulate the system of crime/punishment (Brownlie, 2008).

International Commercial Contracts

The interstate level is the ability of nations to exchange resources, goods, services, and technologies for mutual benefit. But legal aspects are the biggest stumbling block in the modern world. Some countries are interested in air transportation of goods, while others are ready to receive goods only in local ports. Nations have decided to develop international commercial contracts (ICCs).

The system of contracts involves direct deliveries in one of the most convenient ways for all parties to the contract. Also, the laws of many countries allow the creation of international intermediary companies or official distributors. In this case, logistics and many business processes are no longer the seller's problems. Intermediaries must independently settle all the details to benefit.

International business law also involves creating companies and factories in the territory of other states after prior agreement on all the details. This strategy allows you to minimize costs by consolidating all business processes in one place. Licenses and joint ventures also allow settling many disputes and legal issues. In addition, no one allows entrepreneurs to appoint a franchisee and forget about any problems.

What Is CISG and What Is Its Impact on International Trade?

CISG is an international convention that regulates the international activity and the trading process. It should be noted that CISG does not directly affect business relations between companies and states. At the same time, the general principles and guarantees remain unchanged for all market participants. In addition, the parties cannot go against international agreements. Violation of even part of the CISG norms entails serious sanctions, which is unacceptable to all parties. In some way, this convention works as a system to deter dishonest business activities.

International Business Law & Insurance

Risks in business are the norm since no one can predict when any process will go wrong. For example, a natural phenomenon like a tornado can destroy food or medicine trucks. An oil tanker can break through the stern or run aground. That is why CIF contracts and FOB contracts always include all emergencies to minimize risks. Business insurance is important because it is a way to minimize losses when nothing depends on business representatives.

However, insurance often covers transported goods, vehicles, and activities related to dividing cargo into several parts for delivery in several directions simultaneously. In addition to insurance and protocols, international conventions also regulate business processes and are the guarantors of security for companies. Conventions are a methodological guide that helps regulate some business processes faster.

Conclusion

International business law helps to standardize commercial relations between countries and companies. Besides, the whole complex of treaties, pacts, and conventions helps avoid force majeure or illegal actions. The modern world cannot be imagined without rules since only strict adherence to certain business models allows us to count on a trade balance and mutually beneficial commercial processes.

Despite the rare force majeure events, the world community strives for the strict implementation of all international treaties. Such a strategy is the only correct one since countries and companies want to see transparent rules of the game. That is why the institution of trade is so important in the modern world. Supply stability is paramount, and IBL activities play a key role in society.

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