International business is no longer a series of discrete foreign trade transactions such as the sale of cloth by a textile broker in New Delhi to a clothing manufacturer in London, or the export of sugar cane from a cooperative in Columbia to a sugar Manufacturer in New York. (Salacuse, ND).
International business has witnessed a tremendous expansion and now covers longer periods of time, as much as many years; leads to complex legal, financial and technical relationships as well as the involvement of many participants from many different countries, including multinational enterprises, global financial institutions, sovereign governments, state enterprises, and international organizations. (Salacuse, ND).
The participants in complex international business transactions come from different parts of the globe with diverse cultures, political stability, conflicting ideologies, differing bureaucratic and organizational traditions, inconsistent laws, and constantly changing monetary and economic variables such as interest rates, exchange rates, GDPs, just to name a few. (Salacuse). The likelihood of conflict from international business is therefore increasing along with the growth in the magnitude, diversity, and complexity of its transactions (Salacuse, ND).
The aim of the paper is to see how international law is employed by businesses in resolving these conflicts. We predict or hypothesize in this paper that International Law plays a major role in resolving these disputes. We intend to test for the validity of this hypothesis by carrying out an analysis on cases of international business tried by a number of arbitration organizations. Disputes can arise either between two countries or regions or between legal and moral persons from different countries.
As such, the analysis will be separated into two parts including analysis of disputes arising between legal and moral persons and between two countries or regions. Section 2 presents a general overview of International Law as well as some important concepts of Law such as contract, offer and acceptance, Constitutional law, torts, Consideration, Equity, Genuineness and Assent Agreement and Crimes. Section 3 presents an analysis of disputes concerning international business. This section begins with an analysis of disputes between legal and moral persons from different countries or regions.
An analysis of disputes arising between countries and regions is presented later in the section. Section 4 presents a general conclusion as well as findings and recommendations. 2. International Law and Important aspects of Law. Calhun (2002) defines International Law as the body of rules and conventions that nominally govern relations between states. It is a set of rules generally recognized by civilized nations as governing their conduct towards each other as well as towards each other’s citizens. (Mclean and McMillan, 2003).
The degree to which International Law differs from the national law depends on whether one adopts a positivists or naturalists approach. (Mclean and McMillan, 2003). On the one hand, positivists view law as a sovereign backed by force and because the international system is an anarchy without supreme authority, international law is necessarily deficient (Mclean and McMillan, 2003). On the other hand, following the naturalists belief, law consists in the recognition and codification of other sources, such as customs, which do not rely upon a sovereign for their authority.
(Mclean and McMillan, 2003). Whereas some view international law as a by-product of the rise of the nation state in the 17th century, others trace its origin to the Jus Genitum (Law of Nations) of the Holy Roman Empire. (Boyer, 2001). Irrespective of its origin, international law was acknowledged to comprise rules governing nations in their relations with one another by the time the United States was founded. (Boyer, 2001). Today, Law has expanded its scope from the binding of relations between nations to include individuals as well.
(Boyer, 2001). Cases alleging violations of International Law are tried by the International and regional tribunals, which include the International Court of Justice (ICJ), the Court of European Communities, the Inter-American Court, the European Court of Human Rights. (Boyer, 2001). However, National Courts are also competent to try cases alleging violations of International Law under circumstances where their rules and standards meet a minimum international standard. (Boyer, 2001).