國際商法授課教案

TeachingPlanforInternationalBusinessLaw(國際商法授課教案)ShandongSchoolofLaw,InstituteProf.&Dr.JiangZuoliChapterOneIntroductiontoInternationalBusinessLawI.ObjectivesToprovideageneralandbriefsurveyofhistoryandsourcesofinternationalbusinesslawTogiveageneralintroductiontothemoreimportantinternationalorganizationsTomakeacomparisonofmunicipallegalsystemsII.TimeAllotmentThefirstperiodisdevotedtotheconcept,historyandsourcesofinternationalbusinesslawThesecondperiodisdevotedtointernationalorganizationsandcomparisonofmunicipallegalsystemsIII.HistoricalLegalbackgrounds1.Economicglobalization,inrecentyears,particularly,astheColdWaranditsthreatofmajordisasterseemstohavereceded,hasbeenoneofthehottestfocusesintheworld.Althoughitisextremelydifficulttodefineeconomicglobalization,manyeconomistsandbusinessexpertsbelievethatnobusinesscanbepurelydomestic,andtherealitiesofthemodernworldmakeallbusinessinternational.Thecausesofthesedevelopmentsarenumerous:incredibleadvancesinefficiencyofcommunication,extraordinaryreductionsintransportcosts,growingprevalenceofinstanttele-and-cyber-transactions,treatyandothernormscausingreductionofgovernmentalbarrierstotrade,andeconomicclimatemorefavorabletoprinciplesofmarketeconomics,cross-borderinfluencesofcompetitionwhichhavedrivenincreasesinproductionandserviceefficiencies,and,lastbutnotleast,theblessingofrelativepeaceintheworld.Asaresult,scholarlyeffortsandgovernmentalpolicystudieshavealsobeengivingincreasedattentiontointernationaltrade,legislativeinitiativesrelatingtotrade,theactivityoffinancialinstitutionssuchastheWorldBankortheInternationalMonetaryFund(IMF)（國際貨幣基金組織）,andmanyothereconomicsubjectsrelatingtoinvestment,competitionpolicy,etc.2.ManylawscholarsinwesterncountiesbelievethattheHammurabiCodes(c.18thc.B.C)inBabylon,theearliestknowncomprehensivecodesoflawintheworld,istheoriginofinternationalbusinesslaw,asconsideredtobeappliedmostproperlyinbusinessaffairs.TheHammurabiCodescoversawiderangeofbusinessareassuchassaleofgoods,prices,tariffs,variouscontracts.Inthecourseoftradingoutsidetheirboundaries,BabylonmerchantsbroughtbusinesslawtothePhoeniciansinMediterraneanareas.Romebegantobemoreandprosperouseconomicallyin450B.C.,andasaresultthelawtherewasinquickdevelopment.TheRomanlawthenwasknownasIusCivil(civillaw)（市民法）whichregulatedtherelationshipsofRomansandIusGentium(publicinternationallaw)（萬民法）whichregulatedmostlythebusinessaffairsofRomansandforeigners.RomansconqueredGreecein146B.C.,andreceivedtheRhodelawwhichwaspopularinaGreekcolony.DuringthemidandlateMiddleAges,alongwiththerapiddevelopmentofeconomy,thereinEuropedevelopedasystemofcustomarylawknownaslawmerchant,whichregulatedthedealingsofmarinersandmerchantsinallthecommercialcountriesoftheworlduntil17thcentury.Manyofthelawmerchant’sprinciplescametobeincorporatedintothecommonlaw,andmoderninternationalbusinesslaw.IV.ImportantConceptsInternationalbusinesslawThebodyofrulesandnormsthatregulatesactivitiescarriedoutoutsidethelegalboundariesofstates.Inparticular,itregulatesthebusinesstransactionsofprivatepersonsinternationally,andtheinternationalrelationshipsofinternationalcommercialorganizations.Incomparisonwiththetraditionalinternationalbusinesslaw,contemporaryinternationalbusinesslawcoversmuchmoreextensively,suchaslawfortheinternationaltradingofgoods,companylaw,negotiableinstrumentlaw,maritimelaw,insurancelaw,lawofinternationaltechnologytransfer,industrialpropertylaw,internationalinvestmentlaw,internationalfinanciallaw,internationaltaxlaw,lawofinternationaldisputesettlement.LawmerchantEuropeanmerchantshavedevelopedmanypracticesandusages,andthecourtsworkedoutpracticalandfairrulesandproceduresbasedonthemerchants’customs.Soonthesesameruleswerebeingappliedbothingovernmentalandchurchcourts,andeventuallythelexmercatoria（商人習慣法）becameaninternationalbodyofgenerallyacceptedcommercialrulesthattranscendednationalboundaries.Italsoprovedtobemoreinfluentialthaneventhecivillaw,spreadingtoEnglandwheretheRomanlawtraditionwasresistedbythelocallegalcommunity.Today,manyoftheconceptscontainedinthelawmerchantareincorporatedinmoderncommerciallawcodes,suchastheUnitedNationsConventiononContractsfortheInternationalSaleofGoods.InternationalmodellawInternationalmodellawmeanstherulesandnormsworkedoutandpassedbysomeinternationalorganizationsforthefreechoicebyindividualnations.Internationalmodellawisnotinternationaltreatiesorconventionsandisofnocertainlegalvalidity,however,itincorporatesmanygeneralprinciplesoflawfromvariouslegalsystemsandalsomostwell-knowncustomsandusagesininternationalbusinesspractices.Therefore,manycountriesliketouseitasameansofinterpretinginternationalbusinesscustoms,andasmodelfortheirnationallegislature.So,internationalmodellawisanimportantsourceforinternationalbusinesslaw.InternationaltradecustomsandusagesInternationaltradecustomsandusagesmeanthegeneralrulesandpracticesininternationaltradeactivitiesthathavebecomegenerallyadoptedthroughunvaryinghabitandcommonuse.“Theexistenceandscopeofausageoftradearetobedeterminedasquestionsoffact.Ifausageisembodiedinawrittentradecodeorsimilarwritingtheinterpretationofthewritingistobedeterminedbythecourtasaquestionoflaw.Unlessotherwiseagreed,ausageoftradeinthevocationortradeinwhichthepartiesareengagedorausageoftradeofwhichtheyknoworhavereasontoknowgivesmeaningtoorsupplementsorqualitiestotheiragreement.”InternationaltradecustomsandusagesusedtobeoralratherthaninwritingamongmostlyEuropeanmerchants.Yearslater,somenon-governmentalorganizationscompiledthemintowrittenrulesofwhichsomeofthemostworldlyrecognizedaretheWarsaw-OxfordRulesbytheInternationalChamberofCommercein1932,theInternationalRulesfortheInterpretationofTradeTermsrevisedin2000byInternationalChamberofCommerce(hereaftercalledIncoterms2000),theUniformCustomsandPracticeforCommercialDocumentaryCreditsrevisedin1994bytheInternationalChamberofCommerce(hereaftercalledUCP500).Theseinternationaltradecustomsandusagesnowarewidelyrecognizedandacceptedininternationalbusinessareas.V.ImportantLegalPrinciples 1.CivilLawandCommonLawSystemsHistorically,thecivillawdatesto450B.C,thetraditionaldatewhenRomeadopteditsTwelveTables.Themostsignificanthistoricaleventinthedevelopmentofthecivillaw,however,wasthecompilationandcodificationofallRomanlawdoneunderthedirectionofByzantineEmperorJustinian(A.D.483-565).Thiscode,knownastheCorpusJurisCivilis,wascompiledbetweenA.D.528and534.Itwasimportantbecauseitpreservedtheancientlegalsysteminwrittenforms.TheRomanlawwasdisplacedtosomeextentbytherulesoftheGermanictribeswhentheyoverrantheWesternEmpire.Germanictriballaw,however,recognizedtheprincipleofpersonal(asopposedtoterritorial)law,sotheformerRomansubjectsandtheirdescendantswereallowedtofollowtheRomanlaw.ThemedievalRomanCatholicChurchalsoplayedanimportantroleinpreservingtheancientlawbecauseitsCanonlaw,thelawusedinchurchcourts,wasbasedonRomanlaw.WiththerevivalofinterestinclassicalcultureinWesternEuropeintheeleventhandtwelfthcenturies,accompaniedbythediscoveryofacopyofthelonglostCorpusJurisCivilis（國法大全）,activestudyoftheancientRomanlawbeganinearnest.AtuniversitiesinnorthernItaly—especiallyBologna—theCorpusJurisCiviliswassystematicallyanalyzed,firstbyglossators(whoaddednotes—annotations—explainingitsmeaning)andlaterbycommentators(whoattemptedtoadaptittotheneedsoftheirtime).StudentsfromthroughoutEurope,whotraveledtoItalytostudy,returnedtotheirowncountriestostartthenewprofessionoflawyers.TheynotonlysetupnewuniversitiesinParis,Oxford,Prague,Heidelburg,Cracow,andCoperhagen,butalsofoundworkbothintheChurchandasadvisorstoprincesandmunicipalities.Theircommonbackgroundledtothecreationofanewcivillaw,onebasedontheRomanlaw,canonlaw,andthehugebodyofwritingscreatedbytheglossatorsandcommentators.Thiswascalledthejuscommune,orthecommonlawofEurope.TheoriginsoftheAnglo-AmericanCommonLawSystemcanbetracedbacktotheyear1066,whentheNormansconqueredEnglandandWilliamtheConquerorbegantocentralizehisnewkingdom’sgovernmentaladministration.Thename“commonlaw”isderivedfromthetheorythattheking’scourtsrepresentedthecommoncustomoftherealm,asopposedtothelocalcustomarylawpracticedinthecountyandmanorialcourts.DevelopmentoftheenduringprinciplesofthecommonlawwaslargelytheproductofthreecourtscreatedbyHenryII(1133-1189).TheCourtofExchequersettledtaxdisputes;theCourtofCommonPleasdealtwithmattersthatdidnotinvolvetheking’sdirectinterest,suchastitletoland,enforcementofpromises,andpaymentofdebts;andtheCourtofKing’sBenchhandledcasesofadirectroyalinterest,suchastheissuanceof“writs”(writtendecrees)tocontrolunrulypublicofficials.Eventually,thejurisdictionoftheKing’sBenchwasusedtocontrolabusesofpowerbythekinghimself,establishingafundamentaldoctrineofthecommonlaw:thesupremacyofthelaw.Also,whentheCourtofCommonPleasbegantochargelargefeestohearcases,muchofitsjurisdictionwastakenoverbytheKing’sBench.ThejudgesoftheKing’sBenchdidthisbybroadlyinterpretingthewritoftrespasssothatittookinvirtuallyeverykinkoftort,andbyexpandingthemeaningofthewritofassumpsitsothatitappliedtomostformsofcontracts.2.TheoriginsoftheAnglo-AmericanCommonLaw（普通法）Systemcanbetracedbacktotheyear1066,whentheNormansconqueredEnglandandWilliamtheConquerorbegantocentralizehisnewkingdom’sgovernmentaladministration.Thename“commonlaw”isderivedfromthetheorythattheking’scourtsrepresentedthecommoncustomoftherealm,asopposedtothelocalcustomarylawpracticedinthecountyandmanorialcourts.DevelopmentoftheenduringprinciplesofthecommonlawwaslargelytheproductofthreecourtscreatedbyHenryII(1133-1189).TheCourtofExchequersettledtaxdisputes;theCourtofCommonPleasdealtwithmattersthatdidnotinvolvetheking’sdirectinterest,suchastitletoland,enforcementofpromises,andpaymentofdebts;andtheCourtofKing’sBenchhandledcasesofadirectroyalinterest,suchastheissuanceof“writs”(writtendecrees)tocontrolunrulypublicofficials.Eventually,thejurisdictionoftheKing’sBenchwasusedtocontrolabusesofpowerbythekinghimself,establishingafundamentaldoctrineofthecommonlaw:thesupremacyofthelaw.Also,whentheCourtofCommonPleasbegantochargelargefeestohearcases,muchofitsjurisdictionwastakenoverbytheKing’sBench.ThejudgesoftheKing’sBenchdidthisbybroadlyinterpretingthewritoftrespasssothatittookinvirtuallyeverykinkoftort,andbyexpandingthemeaningofthewritofassumpsitsothatitappliedtomostformsofcontracts.Animportantaspectofthecommonlawisitsbasisinthecustomarypracticeofthecourts,andthetermitselfisoftenusedtodescribethatpartofEnglishlawthatisnotbasedonstatutorylaworlegislation.Initsnarrowsense,thecommonlawmustalsobedistinguishedfromthelawthatevolvedoutequityandoutofadmiralty,andotherjurisdictions.Thecommonlaw’sbasisincourtdecisionsorprecedentisalsotheprincipalfactordistinguishingitfromtheRomano-Germaniccivillaw,wherethegroundsfordecidingcasesarefoundincodes,statutes,andprescribedtexts.Onelimitationofearlycommonlawpracticewasitsinflexibility.In1285,theStatuteofWestminstercurtailedthecreationofnewwritsthatthecourtshadbeendevisingupuntiltheninanattempttoexpandtheirjurisdiction.Asaconsequence,thecourtssooncouldhearonlycasesthatfitpreciselywithintheparametersofthetraditionalwrits.Also,asthescopeofthecourts’jurisdictionnarrowed,theproceduralrulestheyfollowedbecamemorecomplex.Finally,withtheexceptionofafewkindsofsuitsthatinvolvedtherecoveryofrealorpersonalproperty,theonlyremedythecourtcouldgivewasmoneyfordamagesactuallydone.Inpart,thecourtsofequity—whichhadthepowertoorderaninjunction,restitution,orspecificperformance—werecreatedtoovercometheselimitations.Asharpdivisionbetweenthecommonlawandequitycontinueduntilthenineteenthcentury.ThenNewYorkenactedacodeofcivilprocedurein1848,draftedbyDavidDudlyField(1805-1894),thatmergedlawandequityintoonejurisdiction.This“FieldCode”requiredlawsuitstobetriedinasingleclassofcourts,usingasingleprocedure.ItwassoonadoptedbymostoftheAmericanstates,bytheAmericanfederalgovernment,byEnglandintheJudicatureActsof1873and1875,andeventuallyinmanyBritishcolonies.Thewayinwhichthecommonlawspreadaroundtheworldisdifferentfromhowthecivillawwasdistributed.Ineachoftheprincipalnationsinwhichthecommonlawdeveloped—Australia,Canada,India,Ireland,NewZealand,andtheUnitedStates—therewasadirectpoliticallinkagetoEngland.AlthoughtherewasatieofsortswithRomefortheEuropeanandLatinAmericancivillawcountries,theconnectionwithothercivillawcountriesismoretenuous.Also,thecivillawistheeasierofthetwolegaltraditionstobereceived,asitisencapsulatedinconvenientcodesanditdealsprimarilywithprivatelawthatisoflittlethreattothelocalpoliticalsystem.Commonlaw,ontheotherhand,isamatrixofcaselawandstatutes;itusesthejurysystemandthedoctrineofsupremacytolimittheactionsofthegovernment;anditencompassesacomplexterminology.Itisclearthatthecivillawandcommonlawaretwodifferentlegalsystems,andoneauthorsummarizedthedifferenceasfollows:“Ifwemaygeneralize,theEuropeanisgiventomakingplans,toregulatingthingsinadvanceandthereforeintermsofdrawinguprulesandsystematizingthem.Heapproacheslifewithfixedideasandoperatesdeductively.TheEnglishmanimprovises,nevermakingadecisionuntilhehasto…andsoheisnotgiventoabstractrulesoflaw….Butrecentlytheattitudesofcommonlawandcontinental(civil)lawhavebeendrawingcloser.Onthecontinentstatutelawislosingsomethingofitsprimacy;lawyersnolongerseedecision-makingasamerelytechnicalandautomaticprocess,butacceptthecomprehensiveprincipleslaiddownbystatutecallforbroadinterpretation….Atthesametime,theneedforlargescaleplanningandorderingofsocialaffairshasforcedAnglo-Americanlawintousingabstractnorms.”Thechiefprinciplesofthecivillawandthecommonlawhavebeencomingsoclose,particularlyinrecentyears,thatsomelegaldoctrinescanhardlybedistinguishedfromeachother.Thenumerouscausesforthisarethegrowingsimilarityofpolitical,cultural,economicsystemsofallnations,alongperiodofpeacetimeintheworld,asbroughtchieflybyeconomicandlegalglobalization.However,wemustnotignorethefactthatthecivillaw,intheinternationalbusinessareas,isgainingmoreandmoreprimacythoughelementsofcommonlawarestillbeingincorporatedintointernationalbusinesslaw.ChapterTwoFormsofInternationalBusinessI.ObjectivesToprovideageneralsurveyofimportanttradetheoriesforthestudentstohelptoobtainabetterunderstandingofinternationalbusinesslawconsideringthefactthatinternationalbusinesslawisdevotedtotheregulationofinternationalbusinessactivities.II.TimeAllotment1.Thefirstperiodisdevotedtosomeimportanttradetheories:specialization,absoluteadvantage,comparativeadvantage,opportunitycost2.ThesecondisdevotedtogovernmentcontrolsovertradeIII.ImportantConcepts1.SpecializationWhynationstrade?Economistsinwesterncountriesbelievethatthereasonisthatallnationsbenefitfromspecialization（專業(yè)化）.Allnationshaveparticulartalentsandresources;likeindividuals,wholenationsareabletospecializeinoneormanyactivities.Forexample,theislandsoftheCaribbeanhaveabundantsunshineandgoodweatheryearround,andsotheislandsspecializeintourism.Specializationheremeansthateachnationshouldspecializebyapplyingthelawofcomparativeadvantagestoitsresourceendowment.Itenablesnationstoemphasizetheactivitiesatwhichtheyaremostefficientandatthesametimegaincertainadvantagesthroughtrade.NationAwillspecializeinX,ifthatiswhereitscomparativeadvantagelies,andproduceallXdemandedbyitselfandNationB.ItwillobtainfromBsinceBproducesenoughforboth.Ifcostsriseasoutputsincrease,specializationwillnotbecomplete;tradewillbecarriedtothepointwherecostsareequalizedinthecountries.2..AbsoluteAdvantageAdamSmithsaidtradebetweennationswouldincreaserealwealthviathedivisionoflabor.Heassumedanabsoluteadvantage（絕對優(yōu)勢）necessary,inthatanexportingindustrymustbeabletoproduce,withgiveninputs,alargeroutputthananyrival.Assumethattwonationsusethesamecompositeinputmixofland,labor,andcapitalwiththeresultthatnationAproducestwiceasmuchoftwocommoditiesasnationB.NationAhasabsoluteadvantagewithrespecttobothcommodities;therefore,Bcannotproduceforexporttrade.3.ComparativeAdvantageAbsoluteadvantageexplainsthattradebetweentwocountrieswilllikelyemergebecauseeachcanspecializeatwhatitdoesbest—emphasizingtheproductionatwhichitismostefficient—andwiththeothercountryforitsrequirementstheothergoods.So,bothcountrieswillbebetteroffbecausespecializationandtradeleadtoincreasesinproductionandtheretoincreasesintheattainableconsumptionlevelsofbothgoodsinbothcountries.However,thistradetheorydoesnotexplainwhyacountrywiththeabilitytoproducetwoormoregoodsbutathigherinputcosttradewithothercountrieswiththesameability.That’stosay,neithercountrieshaveabsoluteadvantageinproductionofanygoods.Comparativeadvantage（比較優(yōu)勢）meansthatcountrieswillspecializeinproducingseveralproductsandservicesinwhichtheyhaveloweropportunitycoststhantheirtradingpartners.Forexample,ahilly,rockycountrywillnotbeabletoraiseasmanysheepperacreasacountrywithfertilegrasslands,buttherockylandcannotsupportanyproductionotherthansheepraising,whereasthegrasslandwillsupportmorelucrativecattleproduction.Eventhoughthegrasslandisabsolutelymoreefficientatproducingbothsheepandcattle,therockylandhasacomparativeadvantageinsheepgrowingbecausetheopportunitiesforgonearenearlyworthless.Therockycountrywillthereforetendtospecializeinsheep,thegrassycountryincattle.Itisclearthatcomparativeadvantageexplainthatevenacountrythatdoesnothaveanyabsoluteadvantageinproducingseveralgoods,canbenefitfromtradingwithothercountries.4.OpportunityCostOpportunitycosttheory（機會成本理論）isoneofthemostimportanttheoriesininternationaltradeandthewell-knownconceptofsustainabledevelopmentofworldeconomy.Opportunitycostmeansthevalueofthebenefitthatisgivenuptoproduceoneeconomicgoodasopposedtoanother.Theconceptofopportunitycostiscrucialtoalleconomicactivities,becauseallresourcesarelimited.Steelusedtoproductgirderscannotbeusedtoproducelocomotives;laborservicesusedtoproductshoescannotbeusedtobuildhouses.Therefore,inordertoascertainthecostofchoosingonealternativeuseofagivensetoflimitedresourcesratherthananother,theeconomistusestheopportunitycostconcept.Hemeasuresthe“real”costofdoingbusinessbyitsopportunitycost,notbyitsexplicit,oroutlay,cost.Therealcostofproducingnails,forexample,isthevalueofanotherproduct,sayrails,thatmighthavebeenproducedfromthesameamountorresources.Inutilizingtheopportunitycostconcept,however,itisnotsufficientsimplytocomparethevaluesofdifferentproductsthatcanbeproducedbyutilizingagivensetofresourcesinmoreorlessthesamemanner.Toillustrate,assumethatamanhasafarmandhasinvestedhislifesavingsinlandandequipment,withallofwhichhegrowsalfalfa.Theopportunitycostofsucheconomicactivitymightbethedifferencebetweenthevalueofalfalfaandthevalueofsomeothercropthathecouldalsoproduce.Hecouldhaveputhisself-owned,self-employedresourcestoentirelydifferentuses,however.Byusinghisresourcesashehas,hehasforgonetheopportunitiesof(1)lendinghissavingsandreceivinginterestonthatinvestment,(2)rentinghislandandreceivingincometherefrom,(3)workingforsomeoneelseforwages.Ifthetotalreturnfromsuchalternativeusesofhisresourcesweregreaterthanthereturnfromtheproductionofanyothercropthathemightgrow,itisthatreturnthatisthemeasureoftheopportunitycosttohimofgrowingalfalfa.Fromthepointofviewofeconomics,themostrationaluseofresourcesisthatusewhichproducesthegreatestreturn.Althoughopportunitycostisthetruemeasureofthecostofoneuseofagivensetofresourcesascomparedwithanyotheruse,themostrationaluseisthatwhichproducesthegreatestreturn.Therefore,theeconomicallyrelevantopportunitycostofagivenactivityisthedifferencebetweenthevalueofthebenefitthatwouldhavebeenproducedbythemostrationalalternativeuseoftheresourcesconcerned.5.TariffsandNontariffBarrierstoTradeTariffsaretaxesplacedonimportseitherbyvalue(advaloremduty)（從價稅）orperunitofquantity(specificduty)（從量稅）.Theyareimposedformanyreasons,including(1)thecollectionofrevenue,(2)theprotectionofdomesticindustriesfromforeigncompetition,and(3)politicalcontrol(e.g.,toprovideincentivestoimportproductsfrompoliticallyfriendlycountriesandtodiscourageimportingproductsfromunfriendlycountries.)Nontariffbarriersareallbarrierstoimportingorexportingotherthantariffs.Nontariffbarriersaregenerallyagreaterbarriertotradethanaretariffs,becausetheyaremoreinsidious.Unliketariffs,nontariffbarriersareoftendisguisedintheformofgovernmentrulesorindustryregulationsandareoftenmotunderstoodbyforeigncompanies.6.InternationalLicensingAgreementIntellectualpropertyrightsareagrantfromagovernmenttoanindividualorfirmoftheexclusivelegalrighttouseacopyright,patent,ortrademarkforaspecifiedtime.Copyrightsarelegalrightstoanartisticorwrittenwork,includingbooks,software,films,music,ortoalayoutdesignofacomputerchip.Trademarksincludethelegalrighttouseanameorsymbolthatidentifiesafirmoritsproduct.Patentsaregovernmentalgrantstoinventorsassuringthemoftheexclusivelegalrighttoproduceandselltheirinventionsforaperiodofyears.Copyrights,trademarks,andpatentscomposesubstantialassetsofmanydomesticandinternationalfirms.Andasvaluableassets,intellectualpropertycanbesoldorlicensedforusetoothersthroughalicensingagreement（許可協(xié)議）.7.A.TechnologyTransferTheexchangeoftechnologyandmanufacturingknow-how（專有技術(shù)）betweenfirmsindifferentcountriesthrougharrangementssuchaslicensingagreementsisknownastechnologytransfer.Transferoftechnologyandknow-howareregulatedbygovernmentcontrolinsomecountries.ThiscontrolismorecommonwhenthelicensorisfromahighlyindustrializedcountrysuchastheUnitedStatesandthelicenseeislocatedinadevelopingcountrysuchasthoseinLatinAmerica,theMiddleEast,orAsia.Thelicenseemay,inamannertobenefithisowncountrytoindustrialize,modernize,anddevelopaself-sufficiencyintechnologyandproductionmethods,requirethelicensortotransfermostmoderntechnologytoitscountry,ortrainworkersinitsuse,whilethelicensormaybereluctanttodoso.8.InternationalFranchisingFranchisingisaformoflicensingthatisgaininginpopularityworldwide.Themostcommonformoffranchisingisknownasabusinessoperationsfranchise,usuallyusedinretailing.Underatypicalfranchisingagreement,thefranchiseeisallowedtouseatradenameortrademarkinofferingroyaltybasedonapercentageofsalesorotherfeestructure.Thefranchiseewillusuallyobtainthefranchiser’sknow-howinoperatingandmanagingaprofitablebusinessanditsother“secretsofsuccess”.Forexample,franchisingintheUnitedStatesaccountsforalargeproportionoftotalretailsales.Inforeignmarketsaswell,franchisinghasbeensuccessfulinfast-foodretailing,hotels,videorentals,conveniencestores,photocopyingservices,andrealestateservices,tonamebutafew.ChapterThreeLegalSystemofInternationalBusinessI.Objectives1.Toofferageneralsurveyoflegalsystemofinternationalbusiness2.ToprovideananalysisofimportantinternationalbusinessrulessuchasCISG,UNIDROITandIncoterms20003.TointroducesomeimportantpracticalskillsindoinginternationalbusinessII.TimeAllotment1.ThefirstperiodisdevotedtotheCISG2.ThesecondperiodisdevotedtotheUNIDROITPICC3.ThethirdperiodisdevotedtoIncoterms2000III.HistoricalandLegalBackgrounds1.HistoricalandlegalbackgroundsfortheCISGInthetwelfthcentury,medievalEuropeexperiencedarenaissanceoftradeandcommerce.Merchantsfromthecities,manytravelingbycaravan,metattradefairsandcitymarketstoexchangegoodssuchaswool,saltedfish,cottoncloth,wine,fruit,andoils.TraderoutestotheEastwereopening,withaccesstosilkandnewspices.Rudimentar