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International
Business
Law
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Global Business
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NAFTA
In order to promote trade, the United States, Canada, and
Mexico have agreed to follow the rules of the North American
Free Trade Agreement (NAFTA).
Unlike many other regional agreements, the focus of NAFTA is
strictly on economic trade, rather than on the political
interrelationships among the three countries.
The agreement provides that:
The NAFTA countries will ensure that none of their national or
local laws discriminates against the goods of the other countries.
Each country will have greater market access within the borders
of the other two.
Some tariffs and import and export restrictions will be eliminated.
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European Union
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The International
Legal Environment
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Facts:
Johnson Corp., a U.S. firm, entered into a contract with Li
Company, a Chinese firm, in which Li Company agreed to
manufacture designer handbags for distribution.
After it began selling the manufactured handbags, Johnson
Corp. learned that Li Company did not obtain necessary
permission from the designer of the handbags, who owned the
trademark.
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Facts:
Smirdorf, Inc., a Romanian automobile manufacturing company,
is opening a plant in the United States.
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Trade Sanctions
and Embargoes
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Governmental Actions
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Boycotts
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Copyrights
Copyrights protect the authors or creators of literary, artistic, or musical
works and computer programs.
These laws prohibit the reproduction or alteration of an authors work
without his or her permission.
Patents
Patents are a statutory privilege granted by a nation to inventors for a
fixed period of years to exclude all others from manufacturing, using, or
selling a patented product without permission from the inventor.
A U.S. firm can take advantage of world markets by licensing foreign
firms to either manufacture a patented product or use an innovative
manufacturing process in the manufacture of a product.
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Trademarks
Trademarks, trade names, service marks, and
certification marks are valuable tools used by
businesses to identify their products and services.
The treatment of these valuable properties in
international commerce does not greatly differ from
domestic treatment.
Trademarks are viewed as property and thus can be
transferred or licensed to others.
Foreign licensees must meet certain product quality
requirements so that the use of the mark does not
deceive the consumer or decrease the value of the
mark to the owner.
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