International Business Chapter 9

Decent Essays
1. What is the significance of determining whether a country follows the rule of law? Because it makes encouraging foreign investment easier because foreign businesses will know that their interests will be protected. Following the rule of law also makes ensuring protection of human rights of local people easier. 2. How does international law differ from national law? What are the sources of international law? International law includes legal relations between governments, including laws concerning diplomatic relations between nationals and all matters involving the rights and obligations of sovereign nations. Private international law would cover matters involved in a contract between businesses in two different countries.…show more content…
Each international company must study and comply with the laws of each country where they may want to manufacture, create, or sell products. Each country deals with trade secrets differently and in their own fashion. 6. Often taxes are used for reasons other than raising revenues. What are the other purposes for which taxes are used? Nonrevenue taxes are used to redistribute income from one group to another in a country, to discourage
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