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International Business Relations Between Countries And Different Legal Systems

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“When law is internationalized it changes, it is denationalized, modernized and liberalized, sometimes intentionally, sometimes inadvertently”

That being said I’d like to state that International Business Transactions is a field which deals with commercial contracts between two or more countries. They can be ranging from the simplest form- trade to the most complicated kind of foreign direct investment. As a layman would understand it simply means an area of law that deals with international business relations between countries having different laws, rules and regulations. So one might think, when there is a contract of sale of goods, services or goods and services how does the law apply to countries with different legal systems? What happens in case of a dispute? What court of law has jurisdiction? and which country’s law applies? This is what is dealt with in the subject of International Business transactions. What exactly is done to address this issue. Here, is where the process of Harmonization comes in. Harmonization basically means, ‘bringing together’ in a way whereby you remove the difficulties and inconsistencies between two things, here, being laws. Various attempts have been made at an international level to regulate and harmonise laws between the various countries of the world. But, first I’d like to give a little backdrop to the history of the harmonization process.

International trade was seen to escalate after the Second World War, especially after the

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