Page 81 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes John J Shaw has explained the anatomy of bribe in Figure 4.1.
Figure 4.1: Share of Top Investing Countries in FDI Inflows

Bribe maker Improper Bribe taker as
as giver Payment receiver

Intermediary

Source: P K Vasudeva, International Marketing, Excel Books.

Notes It is interesting to note that there is no international law that deals with business
activities of companies in the international arena.
There are only national laws that vary from one country to another. In preparing a contract, a
buyer and seller stipulate a particular legal system that is to take precedence in resolving any
dispute. The court has to be indicated for legal remedy in case of a dispute. The company must
keep in mind that to earn a legal victory in the home court is one thing but to enforce a
judgement against a foreign party is something different. In the international arena, enforcement
is very difficult unless the foreign party has the desire to continue business in the country where
the judgement is obtained.
It is often necessary to file a lawsuit in the defendant’s home country. To make certain that the
foreign court will have jurisdiction to hear the case, the contract should have a clause that allows
the company to bring a lawsuit in either the home country or the host country. According to
Article 17 of the Brussels Convention on Jurisdiction and Enforcement of Judgements, the place
where the matter in controversy is located is the exclusive forum for disputes regarding real
property, status of a corporate entity, public records, trade mark, copyright, patent and
enforcement of judgements.
Whenever possible and practical, the company should consider commercial arbitration in place
of judicial trials. Arbitration proceedings provide such advantages as an impartial hearing, a
quick result and a decision made by experts. Both IBM and Fujitsu seemed satisfied with the
ruling of two arbitrators in settling a copyright dispute. Intel, in contrast, did not want arbitration
and was frustrated by the pace of its copyright lawsuit against NEC. After hearing lengthy and
time consuming arguments, a US district judge ruled that Intel held a legitimate copyright. The
case became more complicated when higher courts took another year to decide whether the
judge should disqualify himself. The judge finally had to step down and the arguments were
ordered and re-heard because he happened to own Intel stock worth $80 through an investment
club.
Self Assessment

Fill in the blanks:
1. The only major distinction between the ............................ is the freedom of the judge in
interpreting laws.

2. It is often necessary to file a ............................ in the defendant’s home country.
3. There are only ............................ that vary from one country to another.

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