International Trade Law Chpt 1

Why is studying legal aspects of international business important?

It provides understanding of the levers of power in society and the impact of different legal and political systems on business decisions.

What is law according to Blackstone?

Law is a rule of civic conduct, prescribed by the supreme power of a state, commanding what is right and prohibiting what is wrong.

How is law different from rules?

Laws are rules that can be enforced by courts; not all rules are laws.

What are primary sources of Canadian domestic law?

Constitutional law, legislation, and common law/case law.

Distinguish public law from private law.

Public law governs relationships between individuals and the state; private law regulates relationships between private legal persons or entities.

What is sovereignty in international law?

Sovereignty is supreme, independent power claimed by a nation state over its territory, allowing it to choose its own political, economic, and social structures.

Define public international law.

Law regulating relations among nations, derived from treaties, conventions, and custom; aims to ensure order and peaceful coexistence among states.

Define private international law.

Law regulating the affairs of private persons (including corporations) located in different countries; also called conflict of laws.

What are the main sources of international law per Article 38(1) of the ICJ statute?

Conventions/treaties, international custom, general principles recognized by civilized nations, judicial decisions, and legal scholarship.

What is a treaty?

A legally binding agreement between two or more states, covering topics like trade, investment, and environment.

What is customary international law?

Unwritten rules binding all states if widely followed, including jus cogens (peremptory norms) like bans on slavery or genocide.

What are general principles of law in international tribunals?

Universal beliefs and practices such as good faith and impartiality of judges, applied when no treaty or customary law resolves a dispute.

What is 'soft law'?

Non-binding, persuasive documents such as UN resolutions and codes of conduct; influential, aspirational, can become hard law if widely adopted.

How is international law enforced domestically?

States enforce laws with police and courts; internationally, compliance relies on voluntary agreement, political or economic pressures, and sometimes collective action (e.g., UN Security Council).

What are retorsions and countermeasures?

Retorsions are unfriendly but legal acts of retaliation; countermeasures are responses to illegal actions, allowed only if the offending state refuses to remedy the wrongful act.

How are treaties created?

Negotiation, signing (non-binding), domestic implementation, and ratification (binding); Canada requires both federal and provincial action depending on subject matter.

What is the function of the United Nations?

Maintains international peace, develops friendly relations, promotes human rights, and addresses global economic, social, and environmental challenges.

Roles of UNCTAD and UNCITRAL

UNCTAD promotes trade and development in developing countries; UNCITRAL harmonizes international trade law.

Describe the Bretton Woods Institutions.

IMF: global monetary stability; World Bank: development and poverty reduction; GATT: trade rules and liberalization.

Role of the ICC

The International Chamber of Commerce advocates for open markets, free trade, and business-friendly policies worldwide.

Function of the OECD

The OECD fosters cooperation between 36 countries to solve economic, social, and environmental challenges based on market economy principles.

G7 vs. G20:

G7: annual summit of advanced economies to discuss world issues; G20: informal forum of major economies and emerging markets to coordinate financial and monetary policy.

What is the World Economic Forum?

International organization for public-private cooperation, hosts meetings of business, political, and civil society leaders to address global issues.

Why is it important for Canadian managers to study legal aspects of international business?

Studying legal aspects helps Canadian managers understand the levers of power in society, navigate different legal and political systems, interpret media reports, develop strategies for foreign market entry, and resolve cross-border conflicts. This knowledge supports better decision-making in a global context.

How does law differ from other types of rules?

Law consists of rules that are prescribed by the supreme power of a state and are enforceable by courts. Unlike other rules, laws are recognized as binding by a community and can be enforced through legal institutions.

What are the primary sources of Canadian domestic law?

The main sources are constitutional law (from the Constitution Acts of 1867 and 1982), legislation passed by federal or provincial governments, and common law (judge-made law inherited from England).