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2
Legal System
The legal system of a country refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained. A country’s laws regulate business practice, define the manner in which business transactions are to be executed, and set down the rights and obligations of those involved in business transactions.
3
Legal System
—— Different Legal System
Common law: common law system is based on tradition, precedent, and custom. Tradition refers to a country’s legal history, precedent to cases that have come before the courts in the past, custom to the ways in which laws are applied in specific situations. Common law system has a degree of flexibility. Judges have the power to interpret the law. It is now found in most of Great Britain’s former colonies. 4fferences in Contract Law
United Nations Convention on Contracts for the International Sale of Goods (CISG). The CISG establishes a uniform set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations. When firms do not wish to accept the CISG, they often opt for arbitration by a recognized arbitration court to settle contract disputes.
10
Legal System —— The Protection of
Intellectual Property Intellectual property refers to property that is the product of intellectual activity, such as computer software, screenplay, music score, the chemical formula for a new drug. Ownership rights over intellectual property are established through patents, copyrights, and trademarks.
12
The Determinants of Economic Development
Differences in economic development Static Index:
gross national income (GNI) per capita, GNI.pdf & GNIPC.pdf gross domestic product (GDP) per capita, GDP.pdf Purchasing power parity (PPP) adjustment, GDP_PPP.pdf In 2001, in China the GNI per capita was $890, the PPP per capita was $4260.
Dynamic Index :
economic growth rates. Text P 42 table 2.1
13
The Determinants of Economic Development
Broader conceptions of development: Amartya Sen. Development should be assessed less by material output measures such as GNI per capita and more by the capabilities and opportunities that people enjoy. Human Development Index (HDI): measure the quality of human life in different nations.
批注本地保存成功开通会员云端永久保存去开通
International Business
Chapter 2 National and Cultural Differences
1
Economic Systems
Market Economy: all productive activities are privately owned, production is determined by the interaction of supply and demand and signaled to producers through the price system. Command Economy: the quantity and the prices of goods and services for sale are planned by the government. Mixed Economy: between market economies and command economies.
5
Legal System
—— Different Legal System
Theocratic law: theocratic law system is one in which the law is based on religious teachings. Islamic law is the most widely practiced theocratic legal system in the modern world. it is primarily a moral rather than a commercial law and is intended to govern all aspects of life. The foundation for Islamic law is the Koran. In reality, many Muslim countries have legal systems that are a blend of Islamic law and a common or civil law system.
7
Legal System
—— Differences in Contract Law
Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out. Contracts drafted under a civil law framework tend to be much shorter and less specific. It is more expensive to draw up contracts on a common law system. Resolving contract disputes can be very adversarial in common law systems.
11
Legal System —— Product Safety and
Product Liability
Product safety laws set certain safety standards to which a product must adhere. Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage. There are both civil and criminal product liability laws. Civil laws call for payment and monetary damages. Criminal liability laws result in fines or imprisonment. Both civil and criminal liability laws are extensive in many country.
6
Legal System
—— Differences in Contract Law A contract is a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved. Contract law is the body of law that governs contract enforcement.
Legal System
—— Different Legal System
Civil law: civil law system is based on a very detailed set of laws organized into codes. Civil law system tends to be less adversarial and less flexibility. Judges have the power only to apply the law. More than 80 countries, including Japan, Germany, France and Russia, operate with a civil law system.
9
Legal System
—— Property Rights
Property refers to a resource over which an individual or business holds a legal title; that is, a resource is owned. Property rights refer to the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. Private action refers to theft, piracy, blackmail, and the like by private individuals or groups. Example: Russian Mafia, Japan yakuza.
Legal System
The legal system of a country refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained. A country’s laws regulate business practice, define the manner in which business transactions are to be executed, and set down the rights and obligations of those involved in business transactions.
3
Legal System
—— Different Legal System
Common law: common law system is based on tradition, precedent, and custom. Tradition refers to a country’s legal history, precedent to cases that have come before the courts in the past, custom to the ways in which laws are applied in specific situations. Common law system has a degree of flexibility. Judges have the power to interpret the law. It is now found in most of Great Britain’s former colonies. 4fferences in Contract Law
United Nations Convention on Contracts for the International Sale of Goods (CISG). The CISG establishes a uniform set of rules governing certain aspects of the making and performance of commercial contracts between sellers and buyers who have their places of business in different nations. When firms do not wish to accept the CISG, they often opt for arbitration by a recognized arbitration court to settle contract disputes.
10
Legal System —— The Protection of
Intellectual Property Intellectual property refers to property that is the product of intellectual activity, such as computer software, screenplay, music score, the chemical formula for a new drug. Ownership rights over intellectual property are established through patents, copyrights, and trademarks.
12
The Determinants of Economic Development
Differences in economic development Static Index:
gross national income (GNI) per capita, GNI.pdf & GNIPC.pdf gross domestic product (GDP) per capita, GDP.pdf Purchasing power parity (PPP) adjustment, GDP_PPP.pdf In 2001, in China the GNI per capita was $890, the PPP per capita was $4260.
Dynamic Index :
economic growth rates. Text P 42 table 2.1
13
The Determinants of Economic Development
Broader conceptions of development: Amartya Sen. Development should be assessed less by material output measures such as GNI per capita and more by the capabilities and opportunities that people enjoy. Human Development Index (HDI): measure the quality of human life in different nations.
批注本地保存成功开通会员云端永久保存去开通
International Business
Chapter 2 National and Cultural Differences
1
Economic Systems
Market Economy: all productive activities are privately owned, production is determined by the interaction of supply and demand and signaled to producers through the price system. Command Economy: the quantity and the prices of goods and services for sale are planned by the government. Mixed Economy: between market economies and command economies.
5
Legal System
—— Different Legal System
Theocratic law: theocratic law system is one in which the law is based on religious teachings. Islamic law is the most widely practiced theocratic legal system in the modern world. it is primarily a moral rather than a commercial law and is intended to govern all aspects of life. The foundation for Islamic law is the Koran. In reality, many Muslim countries have legal systems that are a blend of Islamic law and a common or civil law system.
7
Legal System
—— Differences in Contract Law
Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out. Contracts drafted under a civil law framework tend to be much shorter and less specific. It is more expensive to draw up contracts on a common law system. Resolving contract disputes can be very adversarial in common law systems.
11
Legal System —— Product Safety and
Product Liability
Product safety laws set certain safety standards to which a product must adhere. Product liability involves holding a firm and its officers responsible when a product causes injury, death, or damage. There are both civil and criminal product liability laws. Civil laws call for payment and monetary damages. Criminal liability laws result in fines or imprisonment. Both civil and criminal liability laws are extensive in many country.
6
Legal System
—— Differences in Contract Law A contract is a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved. Contract law is the body of law that governs contract enforcement.
Legal System
—— Different Legal System
Civil law: civil law system is based on a very detailed set of laws organized into codes. Civil law system tends to be less adversarial and less flexibility. Judges have the power only to apply the law. More than 80 countries, including Japan, Germany, France and Russia, operate with a civil law system.
9
Legal System
—— Property Rights
Property refers to a resource over which an individual or business holds a legal title; that is, a resource is owned. Property rights refer to the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. Private action refers to theft, piracy, blackmail, and the like by private individuals or groups. Example: Russian Mafia, Japan yakuza.