Private international law and public international law
Successful operation of society and business
Law performs a lot of functions and plays an important role in the successful operation of society and business. Without laws to govern the actions of people and business, the society will not be able to function effectively, and at the same time commerce would likely collapse.
International business is all commercial transactions either private or governmental-which are done between two or more countries. Private companies carry out such transactions for profit; governments may or not do the same in their transactions. Transactions that are included into business are investments, sales and transportation. On the whole, international business includes a large and increasing portion of the world’s entire business.
The rule of law has become the concept that harmonizes the operation of the domestic and international laws that govern the conduct of international business. Some international business transactions are complex, and require at least basic knowledge of the applicable law and legal systems. Having knowing what the rules of the game are becomes not only practical but necessary. Nevertheless, highly-experienced international lawyers cannot be supposed to know all aspects of the laws of other countries. It is significant that persons who deal with international business have a skilled legal advisor who is able to help them in navigating the local laws of the countries in which they conduct business. Besides concerns about potentially applicable domestic laws, it is also essential to consider the existence of international norms and how they are applied in international business transactions.
National public law regulates
National public law regulates the outer limits of private conduct in the business world. These constitute a set of non-derogable norms that sovereign states enact in areas where government regulation is deemed essential such as export and import controls, licensing, trade through import tariffs and other taxes, product quality control and others.
International law has an impact on business international transactions because it is created by treaties and agreement between governments and regulates the trade relations between nations. One of the examples is World Trade Organization law, under witch about more than one hundred states have agreed to progressively lessen import tariffs by agreeing not to discriminate among goods and services imported or provided by any member and by prohibiting discrepancies on the treatment of domestic and foreign goods and services. These principles as well as the ensemble of the WTO agreements restrain the discretion of governments, thus promoting predictably, a highly appreciated notion in international business transactions.
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