Chapter 13 Business in the Global Legal Environment November 24th 2014 13 2 Trade Regulations Contracts and Prohibited Activities in International Business Learning Objectives Examine U S trade regulations Explore considerations for contracts in the International Environment Examine prohibitions of certain business activities in the International Context Trade Regulations General Agreement on Tariffs and Trade GATT International treaty that worked to reduce trade barriers World Trade Organization Created by the GATT it addresses trade between nations including dispute resolution North American Free Trade Agreement Trade agreement between Canada the United States and Mexico Export Controls Prohibit or restrict the export of certain types of products Import Controls Limit or restrict specific products from entering a country o U S Department of Homeland Security Customs and Border Protection Agency CBA has a primary role in import control administration and regulation Tariff and Quotas Tariff An import tax o Imposed to render the imported product more expensive and to keep the cost of nonimported products attractive to consumers o Tariff Rate Quota Favorable tariff on certain quantities of particular Quotas Limits on quantity types of imports Bans Dumping and Subsidized Imports Bans Prohibit importation of certain items by law Dumping When a foreign producer exports products to sell at prices less than its cost of manufacturing Subsidized imports Products produced in a foreign land in which a government has provided financial assistance for the production Countervailing Duty Antidumping Duty and Safeguards Countervailing Duty Type of tariff imposed for subsidized products Antidumping Duty Type of tariffs imposed on dumped goods Safeguards Limited duration growth restrictions that are imposed when domestic markets are threated or injured from imports Contracts U N Convention on Contracts for the International Sale of Goods CISG Treaty that applies to the sale of goods between parties from countries that are signatories to this treaty Uniform Commercial Code UCC Model statute that seeks to provide uniformity to contracts law among the different states o Not a law until state legislatures adopt it as law Choice of Forum Clauses and contract provisions that specify where complaints will be heard A Comparison of Differences between the CISG and the UCC Employment Law and Human Rights Title VII of the Civil Rights Act Federal statute that prohibits illegal discrimination discrimination Americans with Disabilities Act Federal statute that prohibits illegal Alien Torts Claims Act Federal statue that allows noncitizens to bring suit in U S federal court against U S businesses or citizens that have committed torts or human rights violations in foreign lands Prohibited Activities Foreign Corrupt Practices Act FCPA Federal statute that prohibits the payment of bribes by U S companies and the employees of those companies Grease Payments Facilitating payments that are not bribes Anti boycott laws Laws that prevent U S persons and companies from complying with any unsanctioned foreign boycott
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