include providing money to developing countries to fund projects that relieve suffering, including building
roads and dams, establishing hospitals, developing agriculture, and other humanitarian efforts. The World
Bank provides both grants and long-term low interest rate loans to countries, often granting debt relief for
outstanding loans (Cheeseman, 2016, p. 559).
The United Nations Commission International Trade Law is one of the most important international
organizations to date, establishing the 1980 Convention on Contracts for the International Sale of Goods
(CISG), which will be discussed further in the next section.
European Union
The European Union (EU) is a regional international organization that includes many countries in Europe. It
was established to create peace across the region and promote economic, social, and cultural development
(Cheeseman, 2016, p. 561). As of 2018, there are 28 countries affiliated with the EU, although the United
Kingdom has begun steps to withdraw its membership. Additionally, Macedonia is actively seeking a path
toward EU membership, although as of September 2018, the country’s citizens remain divided. The EU
organization has established a treaty for its members that creates open borders for trade among member
nations, especially for capital, labor, goods, and services. The impact on U.S. commerce is significant, as the EU
represents more than 500 million people and a gross community product that exceeds that of the United
States, Canada, and Mexico combined (Cheeseman, 2016, p. 561).
Sovereignty
National sovereignty defines a nation. While clearly defined borders and independent governments also set
parameters for a nation, sovereignty is an important legal principle that allows nations to enter negotiated
treaties with other countries and honor territorial boundaries. It is among the most important international
law principles, thus greatly impacting international trade and commerce.
Since the 1800s, most established nations allowed for absolute sovereignty among the global community.
However, by the 1940s, that allowance was significantly reduced, as countries revisited sovereignty in light of
globalization, transportation, and communication advances, and the rise of international organizations
(Goldsmith, 2000, p. 959). Consequentially, doctrines of limited immunity were created that established
guidelines for how countries may prosecute, or hold foreign nationals accountable, during international trade
and commerce dealings.
A doctrine of sovereign immunity states that countries are granted immunity from lawsuits in courts of
other countries (p. 569). Although the United States initially granted absolute immunity to foreign
governments from lawsuits in U.S. courts, in 1952, the United States adapted federal law to qualified immunity,
which is the immunity regulation adopted in most Western nations. This law led to the Foreign Sovereign
Immunities Act of 1976, allowing U.S. governance over lawsuits against other nations in the United States in
either federal- or state-level courts. Simply stated, a foreign country is not immune to lawsuits in the United
States when the country has waived its immunity, or if the commercial activity against which the lawsuit is
intended causes a direct effect in the United States.
13.2
Sources and Practice of International Law
International law is primarily governed by customs, treaties, and organizations that influence how laws are
understood, interpreted, and enforced around the world. Since there is not a central court to enforce
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