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International Trade Transactions

International Trade Transactions. Dr. Katalin Csekő PhD 1-2 lectures. Risks in International trade 1. The term of risk; The definition of risk exposure; Risk management of major importance as to the complex nature of international transactions; „ General risks”: Political;

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International Trade Transactions

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  1. International Trade Transactions Dr. Katalin Csekő PhD 1-2 lectures

  2. Risks in International trade 1. The term of risk; The definition of risk exposure; Risk management of major importance as to the complex nature of international transactions; „General risks”: Political; Economic risks; Legal risks; Cultural risks;

  3. Risks in international trade 2. „Specific risks”: Transport-related risks; Acts of God; Market risks; Administrative risks; Non performance risks: Credit risks + Financial risks; Non-conformity risks;

  4. Sources of law in international trade • Treaties; • Conventions; • National laws → three legal families (Civil Codes;) • Supranational law → EU regulations • Lex mercatoria → Customary law, usages, model-contracts • Course of dealings • Course of performance; • Decisions of courts; • Opinion of counselors;

  5. International Actors 1 • Public & private • Intergovernmental IGO & nongovernmental NGO; Intergovernmental IGOs: • general→ permanent, to carry on activities of common interest of member states; • specific → permanent, to carry on activities of particular, mutual interests of members; (ICO, Interpol, customs unions, Free trade zones;) • cconsultative associations → to coordinate the economic policies, & interests; to exchange statistics; ( G-77, OECD, OPEC);

  6. International Actors 2. Nongovernmental NGOs: • Non-profit organizations: IATA, Bar Association; • For-profit organizations, made of multinational + national companies: ICC; Duty: • To serve as a coordinating agency for private interests groups in their international affairs; • To adopt international regulations; • To control international affairs; • To promote international dealings;

  7. Freedom of contracting 1. Limited, and must be controlled by fundamental principles such as: • Acting good faith; • Duty for fair dealing; • Considering the expectable interests of the other party; • Obligation to co-operate; • Obligation to mitigates the damages;

  8. Freedom of contracting 2. Generally prohibited: • Providing misleading information; • Showing recklessness in providing information; • Misuse of negotiating power ( coercion); • Committing fraud; • Forging documents and data; • Enforcing illegal clauses, • Unilaterally invalidating clauses;

  9. Freedom of contracting 3. Has been eroded due to: • Increasing power of associations and their model contracts; • General acceptance of Law Mercatoria; • Achievements of consumer law; • EU Regulations &Directives; ( Competition Law; CE-Statements; Product Liability;) • Transport Laws; • Directives of IGOs; (WTO:Customs value, certification of origin; OECD Export-crediting;) • Usages of NGOs; ( ICC Uniform rules for different kind of payments;)

  10. Net of legal relationships 1. • Buyer/importer/purchaser vs. Seller/Exporter • Principle vs. Agent, distributor, trading house, export management company; • Shipper vs. Carrier; • Principle vs. Freight forwarding company; • Proposer/contractor/assured vs. Underwriters/insurance company; • applicant vs. Credit institutionbank • Bailer vs. Warehouse;

  11. Net of legal relationship 2. • Licensor vs. Licensee; • Franchisor vs. Franchisee; • Principle vs. Issuer of certificates of different sorts; • Lesser vs. Lessee; • Leasing company vs. User/owner of future; • Principle vs. Arbitrators; • Creditor vs. Debtor; • Declarant vs. Customs authorities; • Applicant vs. Authorities; ( Ministry; )

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