This chapter deals with two broad issues involving the legal environment. The first issue is concerned with the problems that arise with international commercial contracts and settling disputes when they arise. Since there is no international commercial law or international commercial courts, disputes must be settled under the laws of one of the countries where the parties of the contract reside or, if an arbitration clause is included in the contract, by arbitration. Although there is no international commercial law per se, the agreement to enforce arbitration decisions that exists among a large number of countries does create a system that approaches international commercial court. The second issue concerns the common law bases for the U.S. legal system which creates problems for U.S. companies when interpreting the laws in countries whose legal systems are based either on code, socialist, or Islamic law. A review of the different legal systems is important to ap
History and Geography: The Foundations of Culture What Should You Learn? The importance of history and geography in the understanding of international markets The effects of history on a country’s culture How culture interprets events through its own eyes How the United States moved west and how this more affected attitudes The effect of geographic diversity on economic profiles of a country Why markets need to be responsive to geography of a country Economic effects of controlling population growth versus aging population Communications are an integral part of international commerce The importance of culture to an international marketer The origins and elements of culture The impact of cultural borrowing The strategy of planned change and its consequences History Perspective in Global Business History helps define a nation’s mission - How it perceives its neighbors - How it perceives itself - Its place in the world Insights into history are important