International Business Transactions Research Articles

Literature analysis of the language challenges and the responses thereto of European multinational companies

Language diversity is an inherent part of international business transactions,despite the dominance of English. The challenge for management, HRM, andemployees in multinational companies is to find the right strategy. Multinationalorganizations can be categorized using the EPRG (ethnocentric, polycentric,regiocentric, geocentric) model, according to how they define their relationshipwith subsidiaries, and how they operate in foreign markets. Using this model,conclusions can also be drawn from their applied language strategy. JEL code: F23, Z13

Legal Overview of International Trade in International Business Transactions in Indonesia

The Diverse Human Needs Give Rise to Trade Relations Between Countries. Trade relations that have been established begin with simple models such as barter, buying and selling goods, and even larger and more complex trade relationships. Establishing international trade relations aims not only to meet the needs of a country but also to involve international business transactions between Indonesia and other countries. This research is conducted to understand the legal overview of international trade in international business transactions in Indonesia. This research employs a qualitative method in which the researcher selects normative legal research as the type of research, using sources and research materials from legislation and legal literature. The importance of existence of international trade law as part of international law is crucial, as international trade law plays a vital role in regulating international trade relations within the international community to achieve desired objectives, particularly in international business transactions in Indonesia. Furthermore, fundamental principles within the scope of international agreements serve as legal sources for international trade law, such as the principle of good faith.

A proposal for international arbitration law in Namibia based on the UNCITRAL Model Law on International Commercial Arbitration

International business arbitration is not covered by Namibia's present arbitration law, the Arbitration Act 42 of 1965 (the Act). There is no explicit language in the Act that addresses foreign arbitration as the Act, solely by default, covers national or domestic arbitration. When it comes to international arbitration, the Act has many flaws. Modern commercial arbitrations are increasingly being guided by the Model Law on International Commercial Arbitration (MLICA) of UNCITRAL (the United Nations Commission on International Trade Law) or by state legislation that has been influenced by it. It is undeniable that Namibia must embrace MLICA, including the majority of the 2006 revisions of the MLICA, in order to participate in the global economic village. Furthermore, Namibia has not yet ratified the 1958-adopted New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (CREFAA), which has been hailed as the most effective treaty governing global trade. This article suggests that Namibia should implement both the MLICA and the CREFAA. If this strategy is not adopted, businesses in Namibia will be hesitant to engage in international business transactions due to the lack of legal certainty that the New York Convention and contemporary domestic arbitration legislation bring.

Legal Protection Of International Business Transactions On Electronic Commerce (Ecommerce) Transaction Contracts

Along with the demand for international trade which is quite a lot, the technology and means of electronic communication are also developing. E-commerce is an electronic transaction that is very supportive in the economic field, especially international business transactions. International business transactions are a civil law study that provides greater opportunities for each party to make, agree on, and implement the contents of the agreements they make. With various technological advances, the world provides opportunities for the international community to establish relations between them. In line with these advantages, it is possible that there will still be deficiencies which will cause disputes between the contract makers. These problems can arise because of differences between them, such as in terms of culture, legal perspective, and so on. Therefore, parties from different countries must understand the contracts they make and pay attention to the laws in force in other countries before entering into certain contracts. To prevent unwanted legal consequences, a clear understanding of legal protection is required. This research method is a legal normative research with a statutory approach.

Challenges of Electronic Data Interchange in the digital age

Electronic Data Interchange (EDI) became popular to facilitate international business transactions in the 1990s, but, even today, it can be seen that its use is not introduced everywhere. This article reviews some statements on the adoption of EDI in companies and integration into other IT systems. Furthermore, it looks at situations in specific countries. Statements are made how to integrate Electronic Data Interchange in cloud-based systems.

The Freedom of Contract: The Indonesian Court's Decisions on Internasional Bussiness Disputes

The presence of free trade zone and the increase in cross-border trade, have led to a significant increase in transnational legal relations. As a result, international contracts have become more common, and the principles of freedom of contract, including the freedom to choose the law and forum, have become increasingly important. Freedom of contract is a very universal principle. Almost all countries in the world recognize it as a very fundamental principle in contracts, even in international business contracts. This principle recognizes that contracts made by the parties act as laws for the parties that compile them. However, there is still lacking consistency among Indonesian judges in their interpretation of the choice of law and forum in international contracts. This study examined the raison d’ etre of different views and decisions of Indonesian judges in interpreting the choice of law and the choice of forum, and its implication to the principle of legal certainty in international business disputes. Through the normative legal research which elaborated with a case study, this research finds that The views of some Indonesian court judges deviate from the principle of freedom of contract where the law that has been chosen by the parties is based on considerations of the principle of effectiveness besides focusing on the nature of the case handled so that the decision can be executable. The court may need to balance the principle of freedom of contract with other important considerations in order to arrive at a fair decision. This is why it is important for judges to have a clear understanding of both the principles of freedom of contract and the practical implications of their decisions in order to promote legal certainty in international business transactions.

Diplomatic Associations and Exchange Rates : A Study on Russia-Ukraine War

Purpose : This paper aimed to analyze the impact of the Russia-Ukraine war on the currencies of two major groups of nations based on their diplomatic association with Russia, viz., those against invasion and the non-aligned group. Methodology : The methodology adopted in this paper could be divided into two parts. In the first part, the event study method was used to analyze the aggregated impact of war on the currencies of the two groups of nations. In the second part, a dynamic conditional correlation–generalized autoregressive conditional heteroskedastic model (DCC-GARCH) was used to analyze the dynamic correlation between the two groups of currencies in aggregate. Findings : From the first part of the analysis, it was found that the Russian ruble declined for both groups after the initial economic sanctions, but the recovery afterward was more robust against the currencies of the non-aligned group. The second part of the analysis revealed a significant increase in the time-varying dynamic conditional correlation between the returns of the two groups after the war, indicating a contagion. Practical Implications : Managers are recommended to be cautious of the impact of the increased interrelation of exchange rates among the two diplomatic groups on international business transactions. Policymakers are recommended to consider the fact that economic sanctions not uniformly supported by all major nations cannot have their intended impact. Originality : This paper is the first to examine the impact of the Russia-Ukraine war on foreign exchange rates from the perspective of diplomatic associations of nations.

CROSSING BORDER TRANSACTIONS: UNRAVELING THE INFLUENCE OF E-COMMERCE ON THE ADVANCEMENT OF TRANSNATIONAL BUSINESS LAW

Transnational transactions conducted through E-Commerce platforms open the gates of growth in the legal and economic spheres. In this regard, legislators should be able to create a transnational body of law as uniform rules and contractual patterns for commercial transactions conducted through e-commerce. Complex international business transaction activities such as investment, licensing, franchising, and so on have not escaped the development of e-commerce and the convenience that comes with it. The research uses a normative juridical approach and a descriptive analytical research method to describe the facts related to the problem being studied. Data collection is done through a literature study, searching for relevant data from various sources of primary and secondary legal materials related to the existing problems. The data is then analyzed qualitatively. Legal certainty in this case is rooted in matters that have been agreed upon by the parties and are mandated to continue to refer to the principles of international business transaction law and relevant international trade conventions or agreements. With the existence of e-contracts, agreements for transnational transactions can have permanent legal force and dispute resolution through litigation and non-litigation channels such as arbitration can be carried out virtually.

Dynamics in International Contract Business Negotiations: A Comparison of Brazil, Russia, Indian and China (BRIC)

Globalization has increased countries interaction and trade exchange. Brazil, Russia, India and China (BRIC) became more important economies at the global level during the 21st century. As the success of international negotiations depends on reaching satisfactory agreements for all parts involved, many people have found difficulties in conducting international negotiations involving BRIC negotiators. Several factors may impact the result of the negotiation process. Understanding how these relevant factors may impact on the outcomes of international negotiations among BRIC countries may help to mitigate the adverse effect of different perspectives in an international agreement and allow companies to become more competitive globally. Based on theories of negotiation, this study focuses on the dimensions of negotiating outcomes and process as perceived by BRIC negotiators in international business transactions. As misunderstandings occur during a domestic agreement negotiation within the same culture, one can affirm that the same happens when BRIC negotiators are negotiating an international business agreement. What kind of misunderstandings can prevent successful cross-cultural negotiations among BRIC negotiators? How are BRIC negotiators able to overcome the challenges of the international environment while negotiating an international agreement? Is it possible to settle a common path among BRIC negotiators based on an international business agreement negotiation? The purpose of this research is to answer to these and other questions. From a review of international negotiation practices, a questionnaire focusing on retrospective international contracts negotiation experiences was developed and sent to negotiators from BRIC countries. The results indicate some important outcomes that may be taken into consideration for a successful international negotiation involving negotiators from BRIC countries.

A Shift from State’s Exclusivity to Respecting Party Autonomy: Conceptualising IP Arbitration in India

The consumer-based and technology-driven economy has triggered competitiveness amongst companies. In the ever-evolving market space, the companies have recognised the significance of generating intangible assets such as trademarks, patents, and trade secrets to remain competitive. Due to globalisation, international business transactions with respect to these intangible assets have led to an increase in intellectual property disputes. Moreover, due to IP's complex nature, the risks involved in IP litigation can be burdensome in cross-border IP disputes coupled with the Court’s cumbersome procedure. Given that the stakeholders prefer out-of-court dispute resolution systems like arbitration to resolve their commercial disputes, arbitrating IP disputes is slowly gaining traction. Even though India’s courts have expressed their leaning towards arbitrating IP disputes, the same has become practically impossible due to various impediments in the existing mechanism. This article surveys the current IP arbitration regime and uncovers the existing impediments and loopholes in IP arbitration. Further, the article explores the possibility of liberalising the IP arbitration regime by taking cues from jurisdictions across the globe.

Choice of Law in International Business Contracts

Introduction: Differences in the national legal system and the contract law provisions of each country open up opportunities for conflict and dispute to occur. In addition, differences in national laws that serve as normative references for actors in international trade transactions can also cause doubt and uncertainty for foreign parties. Thus the choice of law can be referred to as the freedom of the parties in a contract to choose which law will be used and applies to the parties in an international agreement considering that the national contract law of each country is very diverse.Purposes of the Research: This writing aims to analyze the choice of law in international business contracts.Methods of the Research: This study uses a normative juridical method. Normative legal research is library research, namely research on secondary data. Secondary data has a scope that includes personal letters, books, to official documents issued by the government.Results of the Research: The legal principles regulated in international business transactions refer to the legal principles of international treaties/contracts agreed upon by the parties, and international trade conventions. The parties involved in international business contracts have the freedom to determine with whom and what the subject matter of the agreement they wish to enter into the contract as long as it does not violate the laws and regulations. Then by entering a choice of law, the parties can easily determine the contents of the business contract because each party can already get clarity about the law that will be used and the interpretation of the contents of the contract so that the implementation of the contract will run more optimally.

A Hybrid Methodology to Improve Speaking Skills in English Language Learning Using Mobile Applications

The main objective of this research is a working example of how a hybrid methodology combining traditional methodologies and mobile devices can be used to contribute to the literature on mobile learning in teaching English as a second language. This work was carried out because, in many Latin American countries, students are taught English as a second language throughout their primary and secondary education. However, at the end of their studies, most students are unable to communicate with other people in English, let alone with native speakers. Moreover, it must be taken into account that nowadays English is the most widely used language in international communications, business transactions, finance and science. The professional who knows how to communicate in English has a positive differentiator in his or her professional profile and can easily access more relevant positions in any institution. For this purpose, a review of different methodologies for teaching oral expression in English has been carried out. Metrics have also been used to choose an effective mobile application to reinforce English speaking. These analyzed methodologies have been combined with the use of a mobile application to propose a hybrid methodology that contemplates an eight-week class guide. Due to the characteristics of mobile learning, this work can help to motivate students in their learning and in improving their communicative skills in the English language. High school teachers can use this methodology as an innovation in their educational programs.

Dozvoljenost izjavljivanja revizije u postupku priznanja strane sudske odluke

Serbian courts do not allow appeal on the points of law (as an extraordinary legal remedy) in the procedure for recognition of foreign judgments. The authors aim to examine the validity of this understanding by critically considering it from the perspective of regulations governing the issues of private international law, non-litigious procedure and civil procedure. In addition, the paper examines whether such a solution corresponds to a broader regulatory framework that includes constitutional and international norms, the purpose of applicable institutes, as well as the need to ensure full legal protection and facilitate international business transactions. The authors conclude that there are no legal obstacles to appeal on the points of law in the exequatur procedure, and that its admissibility would contribute to the improvement of international economic traffic and legal certainty.

Corruption and assortative matching of partners in international trade

Although the effects of corruption on bilateral trade are well-documented, its impact on the composition of trading partners remains unexplored. In this paper, we argue that corruption in a country imposes asymmetric costs on its trading partners depending on their characteristics. Consequently, as the level of corruption in a country changes, its trade flows from some of its trading partners change more than others, depending on their characteristics, changing the composition of its trading partners. We focus on two characteristics of trading partners: (1) the level of corruption and (2) membership in the Organization for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD Convention). Using the gravity model, we find evidence of a negative assortative matching in international trade with respect to corruption. We find that corruption in a country is negatively associated with trade flows from high-corrupt countries and is positively associated with trade volume from signatories of the OECD convention. Our results suggest that future studies on this topic should consider controlling for institutional dissimilarities between the trading partners as it has implications for bilateral trade costs.

ICT and the trading negotiation for international sale contracts in the Pacific Alliance firms

Introduction. The information and communication technologies (ICT) have change the way that firms carry out their international business transactions because small, medium, and large companies are increasingly adopting these tools in order to enhance the productivity into operational processes including the commercial and industrial internationalization. Objective. This article aims to identify the most used ICT in the international trade negotiation process for achieving import and export contracts within the Pacific Alliance companies. Methodology. Then, a survey in 401 internationalized firms was carried out into this regional trade bloc comprised of Chile, Colombia, Mexico, and Peru. Likewise, a descriptive analysis is applied to present the results of the study highlighting the most used ICT into the international trade negotiation and, similarly, an ordered logistic regression is applied in order to explain both the level of importance given to ICT in the negotiation process and the use frequency within this trade agreement. Findings. The research also reveals that ICT are essential for each international negotiation phase, especially in the preparation phase. Conclusion. The use of specialized ICT such as e-procurement, ERP, CRM, NSS, and scenario building software increases as the size of the companies also increases.

Деякі питання вдосконалення ефективності державної антикорупційної політики в Україні в контексті реалізації засад верховенства права

The problematic issues of ensuring on state anti-corruption policy in Ukraine are researched in the article. The current areas of anti-corruption are justified. This scientific task is solved on the basis of a comprehensive analysis of the results of theoretical research and national legislation concerning corruption prevention. In particular, uncertainties and contradictions caused by corruption factors that pose a threat to the national security of Ukraine and exacerbate the systemic crisis of modern social development are clarified. The institutional support is analyzed in the sphere of anti-corruption, which is characterized by the adoption of a new legal framework and the range of entities that care for the prevention and combating corruption in the state. The conditions for ensuring the construction of an effective system for combating corruption at the state level are detailed. Today it is proved that the real result of anti-corruption policy is much lower than it was expected, as it is indicated by existing of a set of systemic problems. In order to implement the state anti-corruption policy effectively, directions for its improvement are proposed. Specifically they are the following: the introduction of a legal institution in order to prevent political corruption; the need to ratify the Organization for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; improving the list of corruption crimes and establishing the adequacy of punishment for such crimes in accordance with their severity; introduction of effective mechanisms of external and internal state financial control and audit over the spending of budget funds. Key words: anti-corruption legislation, state anti-corruption policy, prevention and combating corruption, corruption, political corruption.

IMPLEMENTATION OF THE MERGER CLAUSE BASED ON UNIDROIT PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS (UNIDROIT Principles)

In the current era of globalization, there are a significant number of international transactions which require international commercial contracts. The increasing number of international commercial contracts has led to the development of international legal instruments that regulate these contracts and accommodate the needs of the parties involved in international business transactions. One of these instruments is known as the UNIDROIT Principles. A merger provision is typically written into a large number of contracts. This clause is governed by the UNIDROIT Principles, which can be found in one of its provisions. This research paper will analyse the implementation of the merger clause in the UNIDROIT Principles by courts and arbitration. Taking into account the fact that only a few cases have been decided relating to merger clause under UNIDROIT Principles, this research paper will discuss this topic. This paper aims to examine the implementation of merger clauses under UNIDROIT Principles by court and arbitration through the review of related cases. The method used in this study is normative juridical with a descriptive-analytical nature. To date, the judicial and arbitral decisions that are accessible shed light on the meaning of the merger clause and its relation to the interpretation of the contract.

The Analysis of Indonesia’s International Business

International Business is a business whose activities pass the borders of the country. This definition includes not only international trade and overseas manufacturing, but also a thriving service industry in areas such as transportation, tourism, banking, advertising, construction, retail trade, large trade and mass communications. International marketing is different from International Business, International Trade is an inter-state transaction usually done by traditional way that is by way of export and import. With the export and import transactions, there will be a balance of tread, while international marketing which is the state of a company can be involved in a business transaction with other countries, other companies or the general public abroad. This international business transaction is generally an attempt to market overseas production. Stages in entering into international business: Incidental exports, Active Exports, License Sales, Franchising, Marketing outside the country, Production and Marketing Abroad. The obstacles in conducting international business are: Different Foreign Currencies, Low Resource Quality, Difficult State Payments and Great Risks, The existence of Import Policy of a State, The War, The existence of Regional Economic Organizations.

CONFIDENTIALITY CLAUSES IN INVESTOR-STATE CONTRACTS FOR THE PROTECTION OF TRADE SECRETS AFTER PROMULGATION OF THE INDONESIAN ACT ON PUBLIC INFORMATION DISCLOSURE

A confidentiality clause is a clause in investor-state contracts which is in the operative part of the contract to guarantee adequate protection of the trade secrets of the contracting parties. This article argues that there is a need to change the current practice where investor-state contracts in Indonesia utilizes broadly defined confidentiality clauses as a means to protect trade secrets in international business transactions. This is because a broadly defined confidentiality clause is contradictory to the provisions of the Act on Public Information Disclosure (APID). APID is aimed mainly at providing public information disclosure. The public information includes public contracts, such as investor-state contracts. Therefore, a new model of the confidentiality clause is needed for the protection of trade secrets as intended by the Act on Trade Secrets (ATS) and contract law as well as public information disclosure as intended by APID. This article employs doctrinal legal research. The research utilized, primary, secondary, and tertiary legal authorities. The primary legal material intensively used in this article consists of mandatory-primary legal authorities, in the form of statutes and contracts. The contracts used are the investor-state contracts of Aceh Province, Indonesia. The finding shows that a new model of the confidentiality clause can be created by accommodating both the interest of the state for providing public information disclosure based on APID and the interest of investors for the protection of trade secrets based on ATS and contract law. Investor-state contracts are a specific type of contract which has specific characteristics that apply to both private law and public law. They are different from purely international commercial contracts which only apply private law. Investor-state contract drafters need to be aware of this difference and provide a more balanced confidentiality clause in the contracts.

The Cross-Border Insolvency in the Execution of Bankrupt Assets Outside Indonesian Jurisdiction: A Comparative Study with Malaysia, Singapore, and the Philippines

Insolvency institutions have an important role in realizing legal certainty in the settlement of debt and credit disputes, which is one of the risks that arise from the rapid development of international business transactions. Bankruptcy cases containing foreign elements are called cross-border insolvency. The problems that arise in cross-border insolvency are more complex, especially regarding the execution of assets of bankrupt debtors situated outside Indonesia's jurisdiction. This study uses a doctrinal legal research method with a statutory approach. Bankruptcy in Indonesia is regulated in Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations. In this law, the execution of assets of bankrupt debtors outside the jurisdiction of Indonesia has not been regulated so that the curator as the body appointed to carry out the execution cannot carry out the task as mandated by the law. The non-executable assets of the bankrupt debtor outside the jurisdiction of Indonesia have caused the bankruptcy estate (de boedel) ineffective; therefore, creditors do not receive a maximum payment related to debtor's debt. For this reason, Indonesia needs to adopt the UNCITRAL model of law on cross-border insolvency or to make bilateral and/or multilateral agreements that are reciprocal in nature related to the execution of bankrupt debtors' assets located outside Indonesia's jurisdiction.