International Business Transactions Research Articles

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.

The role of legal support in international business transactions: possible disputes and prevention of actions to prevent them

The role of legal support in international business transactions: possible disputes and prevention of actions to prevent them

HUKUM BISNIS TERHADAP PERDAGANGAN INTERNASIONAL ERA GLOBALISASI SEBAGAI PERLINDUNGAN EKSPORTIR, IMPORTIR, DAN INVESTOR

The purpose of this study is to determine legal protection for international trade in the era of globalization and digital as a form of legal certainty for business people, especially international businesses. This type of research is a qualitative descriptive study. The method in research uses the literature study method with a normative juridical approach supported by a variety of relevant library materials, especially journals. The results show that the legal principles that are carried out in international business transactions (trade) which are global in nature can be found in the legal principles of international agreements, the rule of law that regulates various kinds of provisions and procedures for implementing transactions. The provisions are concerning Contracts for the international Sale of Goods and the UNIDROIT Principle of International Contracts (1994). Legal certainty given to international business actors in business engagements based on the legal source of the international business engagement itself.

PERLINDUNGAN HUKUM TRANSAKSI BISNIS INTERNASIONAL PADA ERA PERDAGANGAN BEBAS

ABSTRACTThe current international business transaction activity is not difficult, with the advancement of technology, the world provides ample opportunities and opportunities for the international community to make connections between them.. International business transactions are private law studies, where in private law the law provides wider opportunities for each party to make, agree and execute the clauses they make. However, it can not be said that in order to carry out such business activities, the parties must carefully understand and understand the legal norms in the countries of the opposing parties. This will greatly affect the implementation of the agreement. For that reason it is necessary for researchers to clarify the study of legal protection of international business transactions in the era of free trade.The following issues are Legal Principles of International business transactions in the era of free trade and Legal Certainty on International Business transactions. The method used is normative legal research.This research produces the Principles of law of international business transactions can be found in the rules of international treaty law which regulates the provisions of international business transactions. The provisions of the international convention on the Contracts for the International Sale of Goods (CISG) and the UNIDROIT Principle of International Contracts of 1994 and Legal certainty in international business contracts can be seen from the legal source of international business contracts. Not surprisingly, when different business actors of citizenship conduct international business transactions, they will consent to law enforcement of one of the business actors. Keywords: Legal Protection, International Business Transactions, Free Trade

Enunciating the Effect of the Doctrine of Sovereign Immunity of States on International Arbitration

In the 21st Century States continue to be one of the main players in international business transactions. The onerous responsibility of states to provide goods and services to their citizens means that, they are by default involved in enormous commercial transactions and investment ventures. In several of these business transactions involving states for example; states and states, states and organizations, states and private individuals/companies, states overtime have adopted international arbitration as their preferred mode of dispute resolution. This is manifested especially in investment agreements and international commercial transactions involving states. However, under public international law (international personality of states) states enjoy sovereign immunity as international legal persons. Sovereign immunity is a legal doctrine by which the sovereign or the state cannot, commit a legal wrong and is immune from civil suit or criminal prosecution. This has raised the concern as to the extent to which a State involved in international arbitration can invoke the doctrine of sovereign immunity and its impact on international arbitration. Inquisitively this paper asks; Is the doctrine of sovereign immunity a threat to international arbitration? In answering these questions, this paper interrogates how various International Conventions that offer a legal framework for international arbitration have addressed these seminal issues. For example; The Convention on the Settlement of Investment Disputes between States and Nationals that was created to offer a mechanism for resolving investor state disputes.

Business Law in Europe after Brexit. The Need for Legal Transnationalisation in the International Market Place. The Example of International Assignments

After Brexit, legislators, practitioners, and legal scholars in the EU have to reconsider what may be legally needed to support business increasingly conducted in or from the EU rather than from London. Practically, practitioners and legal scholars will have to ask whether and to what extent a contractual choice of English or alternatively New York law is or remains sufficiently effective and enforceable especially in proprietary and regulatory matters to overcome the basic conflicts of law approach still cutting up transactions in the international business flows into local parts depending on closest connections in the hope that these legal pieces together still present an adequate legal framework for the business as a whole. The true question is then to what extent common law can remain dominant through a party choice of law. More fundamentally, in all international commerce and finance, therefore in international professional dealings, not only this approach but substantive key building blocks of private law may need reconsideration, especially new financial structures and funding mechanisms, to operate and find more universal legal support. This goes well beyond the EU or a party choice of law and affects all national legal systems connected with the international market place and its operation, therefore also the U.S, South America, Japan, China, South Korea, Singapore, India, Indonesia, and many others. The question then is what the alternatives are. It is submitted that transnationalisation of private law is here the more ready and efficient tool and way forward especially in trans-border manufacturing, supply, and distribution chains by accepting, on the one hand, the legal unity of international business transactions and, on the other, the direct application of international fundamental and general principle, custom and market practices, and a strong form of party autonomy subject to transnational minimum standards of behaviour in the international market place. Although the common law is closer, which derives in contract and moveable property law from its origin in commerce, it needs to respect the rules of the international markets and its legal structures just as much to remain truly relevant and move forward. It means that these are issues no less relevant to international business when connected with or operating from the US, the UK, Canada, or Australia or made subject to a contractual choice of their laws. This article attempts to meet this challenge for international assignments of portfolios of monetary claims with assignees in other countries and debtors in many. It is a vital part of the international financial infrastructure. The solution is found in the approximation of monetary claims to, and treatment like, promissory notes, which developed similarly as negotiable instruments under the older law merchant, the applicable law and relevant sources to be found in the manner of public international law pursuant to Art. 38(1) of the Statute of the ICJ, as it was for all law before the 19th Century when nationalisation set in. Assuming globalisation holds, it is submitted that in international commercial and financial dealings we are returning to this earlier model which, in the Grotian manner, in terms of methodology reunites all law formation and application at the international level at least for professional participants.

OECD Anti-Bribery Convention. Implications on Corporate Criminal Liability in Latin America

This article analyses the impact on corporate legal liability legislation in Latin America as a result of the celebration of the OECD Anti-Bribery Convention in 1997, which established legally binding standards to criminalize bribery of foreign public officials in international business transactions. For that purpose, the legal background for liability of legal persons will be examined and the nature of corporate legal liability in each of the jurisdictions under analysis (Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru). It also explores whether there have been any sanctions imposed on legal persons and individuals as a consequence of the modifications introduced in the domestic legislations as a response to the recommendations made by the Convention. OECD Anti-Bribery Convention, Corporate Criminal Liability, Latin America, bribery, sanctions

Insolvency Proceedings: ASEAN and EU Comparison on the Rules of Foreign Court Jurisdiction

Due to a lack of uniformity or harmonization of laws and regulations, cross-border insolvency has remained an issue in the ASEAN region. ASEAN economic openness with the implementation of the ASEAN Free Trade Area (AFTA) and ASEAN Economic Community (AEC) may create issues at some points as investors compete to dominate the ASEAN while assets are located not only on their own territory but also in other ASEAN member countries. On some occasions, they can fail to meet their debt payment obligations when performing international business transactions. As a result of the bankruptcy case, a legal arrangement may exist between the country in which the business actor is declared bankrupt and the country in which the bankrupt debtor's assets are located. This interaction between two or more countries involves a clash of jurisdictions. In order to counter such an issue, ASEAN may learn from what the EU has done over these decades. The study aims to compare the regulatory issue of foreign court jurisdiction in settling the insolvency cases both in ASEAN and EU. The paper is normative-qualitative legal research. It used a comparative, statute, and conceptual approach. It is found that in terms of cross-border insolvency, the European Union is far ahead of ASEAN, given that at least two major regulations in place, namely EC Regulation 1346/2000 and EU Regulation 2015/848, while ASEAN has almost nothing to offer at this time. The experience of the EU to formulate and implement a settled regulation on foreign court jurisdiction in settling the insolvency cases among EU member countries is one of the valuable lessons that ASEAN may take from the EU.

Choice of Law in Latin American Arbitration: Some Empirical Evidence and Reflections on the Latin American Market for Contracts

The aim of this Article is to assess the preferences of parties to Latin American international business transactions when they choose the law governing their contracts. For that purpose, the authors have conducted an empirical analysis of data that they were able to gather from arbitral institutions active in Latin America, with a focus on years 2011 and 2012. Furthermore they offer some reflections on the results and elaborate on whether they can be explained by the territorial approach of choice of law in Latin America, the importance of the United States as a trading partner for Latin American countries and the extent to which Anglo-American lawyers are present on Latin American markets.

Choice of Law in Latin American Arbitration: Some Empirical Evidence and Reflections on the Latin American Market for Contracts

The aim of this Article is to assess the preferences of parties to Latin American international business transactions when they choose the law governing their contracts. For that purpose, we have conducted an empirical analysis of data that we were able to gather from arbitral institutions active in Latin America, with a focus on years 2011 and 2012. We then offer some reflections on the results and assess whether they can be explained by the territorial approach of choice of law in Latin America, the importance of the United States as a trading partner for Latin American countries and the extent to which Anglo-American lawyers are present on Latin American markets.

Supremacy of the Constitution: The Constitutionality of International Business Transactions Involving the Government of Ghana

Ghana has over the years developed into a world player with its Government engaging in all kinds of international business and economic transactions with foreign partners. All the same, Ghana being a sovereign nation does not act in a vacuum. All its actions must be done in line and in accordance with the laws of the country specifically the Constitution. It is without doubt that Ghana’s Constitution reigns Supreme and is not superseded by any other law, act, etc be it domestic or international. Over the years, these international transactions entered into by the Government of Ghana and other international partners have ended up before the Courts of Ghana where the Courts in upholding the Supremacy of the Constitution have held that all these transactions being contracts involving the Government of Ghana are in a certain class which thus demands compliance with certain laid down requirements in the Constitution failure of which grave consequences have been suffered by these international partners. It is thus necessary to consider the decisions in the light of Ghana’s Constitutional Supremacy, to sift out the road-maps as set out by the Courts of Ghana in order that Legal Advisers to foreign entities that contract with the Government of Ghana are aware of these important case laws in order to guide them appropriately on the Ghanaian law on this issue.

Is there a commendable regime for combatting money laundering in international business transactions?

Purpose Money laundering and grand business corruption continue to plague the global economy, accounting for 2%-5% of the global gross domestic product. Illicit funds, produced through grand corruption, are laundered using complex layering schemes that cloak them in legitimacy by concealing their origins. Lamentably, weak anti-money laundering (AML) frameworks promote economic instability, unjust commercial advantages and organized crimes. This study aims to highlight the need for comprehensive anti-corruption and AML frameworks by critiquing the exploitable gaps in the global AML regime created by heterogeneous state-level AML regimes to date. Design/methodology/approach This study welcomes the United Nations Convention against Corruption (UNCAC) and the financial action task force (FATF) recommendations but underscores the limitations of their effectiveness by investigating state-level enforcement mechanisms to determine these instruments’ true impact or lack thereof. The mutual evaluation reports (MERs) and state-level AML regimes in the UK, the USA and Canada are analyzed to illustrate the distinct implementation of international soft law in domestic legislation. Findings This study finds that UNCAC and the FATF recommendations are pivotal steps towards the establishment of a global AML regime for international business, albeit, one that remains imperfect because of the inconsistency of state-level AML frameworks. Consequently, international cooperation is needed to navigate and improve the discrepancies in varied AML legislation. Originality/value The author provides an in-depth and balanced analysis of current state-level AML developments and relies upon the recent 2016-2018 MERs to indicate the successes and flaws of various AML legislation. Therefore, this critique may guide stakeholders to construct robust AML frameworks and contributes to academic research in AML.

Jurisdiction and Enforcement Post Brexit

In the context of international business and commercial transactions, it is vital that the judgments of one State are enforced by the courts in another. EU law has played a significant role in revolutionising the rules applicable to jurisdiction and enforcement in a cross-border context. As a Member State, the UK has benefitted from these rules and they have contributed to the position of the UK and, in particular, London as the leading centre for dispute resolution in Europe, if not worldwide. With the purpose of contributing to the ongoing discussion concerning common EU and UK rules on jurisdiction and enforcement of judgments post Brexit more broadly, this article provides an updated view of the major issues involved. In doing so, it also underlines the importance of a common EU-UK framework in this regard and the urgency for the EU and UK negotiators to agree on a sensible way forward.

Are We There Yet? Preemptory Issues of Arbitrability and Jurisdiction in Contracts Tainted by Corruption Allegations

With a steady growth of International business transactions, corruption has intensified across all sectors of economic activity. Some of the effects of this tectonic shift has also been felt in Arbitration forums, cutting across all forms, even though the methodology of truce remains contentious. One of the primary investigations in this scholarship is to come out with answers to the burgeoning question of ‘how to deal with corruption’ in the field of Arbitration law. For years since the ICC Case of 1963, corruption allegations have thrown some confusing propositions before the arbitral tribunals across the globe, lending a parallel and divided jurisprudence on the matters where contracts tainted by corruption are argued. This has in turn caused a fetch shift transformation in how these allegations are investigated and what consequences they may cast on the resulting awards across forms of arbitration. The present article tries to paint a wholesome picture of the peremptory issues of ratione materie jurisdiction, arbitrability and to some extent, even admissibility in the light of corruption ridden contractual claims. Firstly, a comparison is drawn with arbitral forums dealing with investment treaty based issues and contractual matters involving private parties. Secondly, an inquiry is led into the arbitrability of contracts, where corruption allegations are raised. Thirdly, an examination is conducted on the modern arbitral confusion around the powers of the arbitral tribunals in terms of evidentiary procedure, investigative powers and jurisdictional authority. Finally, a discussion is conducted on the consequences that flow from the finding of corruption in contracts. While, these answers may not get a unanimous response in terms of their viability, they nonetheless initiates an expedition into the larger point of deflection, ‘Are We There Yet’.

Settlements Agreements and International Cooperation: Promoting Efficiency in the Fight against Transnational Corruption

The thesis provides an overview of corruption using state capture as a major concept that undermines development and presents the use of settlement agreements or non-trial resolutions as the most efficient tool to tackle the problem. In chapter one, a specific view of corruption as a complex phenomenon, main concerns and effects in economies and societies, undermining competition, and increasing poverty is presented. Chapter two provides an overview of the global scenario and reasons that led to the enactment of the main conventions against corruption - the UNCAC and OECD Anti-Corruption Convention, their main provisions concerning enforcement, international cooperation, implementation stages by country, and main achievements. Chapter three focuses on settlements or non-trial agreements, explaining why they are used, when it is advantageous to settle instead of prosecuting a corporation, and how jurisdictions such as the U.S., Brazil, and Switzerland resolve most of the cases. In Chapter four, an analysis of recent joint-resolution cases is presented in chapter four, with a focus on the settlements with SBM Offshore, Odebrecht, and Technip, with an overview of each case, how international cooperation worked, and what was the resolution achieved within each jurisdiction involved in terms of sanctions and requirements. Finally, in Chapter five, actual constraints are addressed and the enactment of a so-called Recommendation in Anti-Corruption Procedures (RAP) to increase efficiency and promote convergence on investigations and enforcement proceedings under the OECD Working Group on Bribery in International Business Transactions (WGB) to increase transparency and promote efficiency is proposed.

Coronavirus-Infected International Business Transactions: A Preliminary Diagnosis

An abstract is not available for this content. As you have access to this content, full HTML content is provided on this page. A PDF of this content is also available in through the ‘Save PDF’ action button.

Anti-Corruption Protection of Russian Companies in Foreign Jurisdictions

The article is devoted to existing problems and prospective tasks of preventing corruption risks and fraudulent threats that domestic public organizations conducting foreign economic activity in the countries of their presence may encounter. The globalization of anti-corruption standards of business conduct rules imposed on business structures around the world is due to the cross-border nature of the laws of several states of the Anglo-Saxon legal system, as well as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. These circumstances require the actualization of the tasks of the anti-corruption policy of every public company, regardless of the country of its affiliation, legal form and type of ownership. Most business organizations in the world are developing their own tactical preventive measures against corruption abroad. The content of these measures is different. In the absence of a unity of approaches to organizational, methodological, regulatory support, as well as legal regulation and application of such measures, the article presents the results of monitoring national and multinational companies’ practices aimed at prevention of corruption risks that may arise in interaction with foreign contractors. The monitoring results are proposed to be considered in the methodological positions of the prospective development of a unified strategy for the prevention of corruption risks for domestic companies operating abroad

Managing Logistic System of an Enterprise in the Context of Conducting International Business Transactions

This paper substantiates that in terms of the international business, management regarding the logistics system within the enterprise requires an integrated approach and coordination of potential capabilities of the business entity, a clear balance and interconnection of logistics flows in the field of production, procurement, warehousing, transportation and marketing. The scientific novelty of the conducted research includes substantiate feasibility of creating a strategy for managing logistics processes within an enterprise-entity of foreign economic activity, which is based on its foreign trade orientation. Such logistic system will contribute to the formation of the economic potential of within the enterprise and, increase the capital profitability. Furthermore, it will be the source of its competitive advantages and a means of increasing market value and profitability.