Law and the International Economy
What is Globalization?
Trade has been up and down for a century
Technology not that new (think telegram)
Assets held abroad has changed dramatically
b/c
Regulation is more lax
Internet and readily available information
Product Quality is higher
Ideologically positive toward diversification
types
FDI = Foreign Direct Investment
i.e.
Building a plant in a foreign country
Portfolio (passive investment)
Feelings of loss of control
i.e.
Asian market responding to U.S. market plunge
What are the gains af globalization?
Gains to trade
Difference in valuation
Comparative Advantage
Doing what you are best at.
Smaller countries can take advantage of gains to trade by lowering trade barriers
Who loses and wins in globalization?
Owners of scarce factors lose in globalization
Owners of abundant factors win in globalization
Losers lose less than winners win
Kalder-Hicks efficiency
Not neccesarily pareto efficiency
What types of integration are there?
Harmonization
All adopt the same rules
Non-discrimination rules
You can set up standardss however you want
Can't apply the rules deviously
Minimum Standards
What Role do Lawyers have in International Trade?
Trooboff
There is not just one law of contracts, torts, etcetera
Most international lawyering is transactional
Is international law really law?
No codified system
International Firms as sanctifiers (see Flood)
How do Treaties Work?
What Law do You Use in International Disputes?
1. What does the Choice of Law regime say?
1a. To avoid Renvoi circle, states apply their own choice of law regime.
1b. In MA, choice of law is where contract is made, barring signifant policy concerns
2. Where is the contract made?
2a. Uses MA law; Court does not consider which law to use in answering this question
2b. In MA, contract is made where
performance
sales
bore date of Portland
3. Public policy
Exception to the analysis.
Woman's capacity does not hurt fundamental public policy
Public policy injects doubt into the analysis.