Figure 13.2
International laws are based on customs, treaties, and organizations that guide partnerships
among nations. (Credit: GDJ/ pixabay/ License: CC0)
International Law
International law relates to the policies and procedures that govern relationships among nations (Clarkson,
Miller, & Cross, 2018). These are crucial for businesses for multiple reasons. First, there is not a single
authoritative legislative source for global business affairs, nor a single world court responsible for interpreting
international law (Cheeseman, 2016, p. 903). There is also not a global executive branch that enforces
international law, which leaves global business affairs particularly vulnerable.
Secondly, if a nation violates an international law and persuasive tactics fail, then the countries that were
violated, or international organizations tasked with overseeing global trade, may act. Often these actions use
force to correct the offenses and may include economic sanctions, severance of diplomatic relations, boycotts,
or even war against the offending nation (Clarkson, Miller, & Cross, 2018, p. 439).
The purpose of international laws is to permit countries as much authority as possible over their own
international business affairs, while maximizing economic benefits of trade and working relationships with
other nations. Since many countries have historically allowed governance by international agreements when
conducting global business, there exists an evolving body of international laws that facilitate global trade and
commerce.
142
Chapter 13 International Law
This OpenStax book is available for free at http://cnx.org/content/col30149/1.5