Lecture Notes April 15 2014 Legal Studies 1101 I European Union Group of 27 European countries whose borders have been torn down This allows for a common market where goods can be exchanged without restrictions a European Union began in 1957 and was made up of 6 countries The goal was to achieve economic unity b Switzerland is not in the European Union and England is attempting c Has it s own legislate body it s own court system and executive II North American Free Trade Agreement NAFTA a Eliminate import and export tariffs between countries who are to leave branches members b This Agreement generated more than 883 billion c Union are unhappy because my American jobs are being put in Mexico because of lower labor costs therefore making products cheaper d Makes the United States trade deficit even larger ASEAN a Association that includes Indonesian Malaysia Singapore Thailand Brunei Myanmar Laos Cambodia and Vietnam b Does not have full trust ex Malaysia plane disappearance search c Japan s role buys 21 of products made by countries in Asean and 64 of foreign aid from countries in Asean Japan however is not in Asean GATT General Agreement on Tariffs and Trade a 96 countries belongs following WWII b 100 agreements on trade were produced c The most favored nations status was given to its members no interest on borrowing money d Goal was to prevent import quotas e Had no enforcement powers f GATT was suspended in 1994 and a new organization was formed called the World Trade Organization WTO WTO World Trade Organization a Very powerful b Still in effect today c Can decide disputes among member countries d Can impose economic sanctions if member countries do not follow the rules e Established broad rules for the trading of goods and provides for reductions in trade barriers among member countries f 141 countries belong to the WTO g Headquarters in Geneva Switzerland Globalization a Global businesses that are supported by the governments to liberalize the world markets III IV V VI b Allows for a freer market and movement of gods and services across boundaries c Governments may still impose trade quotas or restrictions on the quantity of goods that can be imported d Ex Trading with the Enemy Act passed by the United States restricts trade with Cuba or North Korea VII VIII IX Is a political decision Expropriation The risk a business incurs when doing business in a foreign country your business could be taken from you by the foreign country a Transferring funds between countries may be an issue since rates change and the government can restrict to transfer money out of the country Transaction risk a Use contracts to reduce risk on fraud for documentary sale b A buyer can obtain commitment to reduce risk for losing money or c Bill of lading who ever has possession of this bill has possession of goods the goods
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