Slide 1© 2004 West Legal Studies in Business, a Division of Thomson Learning
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An Introduction
In international law, the “law of the jungle” prevails: “might makes right”
However, custom, fairness, private covenants, and treaties supplement the power ethic, equating to the definition of “international law”
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Economic isolationism
Tariff Act of 1930 (the Smoot-Hawley Act)
Other acts affecting trade
Reciprocal Trade Agreements Act
Trade Act of 1974
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Current policy
The U.S. declining dollar is a factor
NAFTA is not a totally-free trade agreement
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A nation should specialize in the goods it produces best
It is a major philosophy behind international trade
It does have disadvantages
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WTO outlaws tariff discrimination for WTO members
WTO outlaws nontariff barriers
UNCITRAL
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Members are Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Spain, Finland, Sweden, and the U.K.
The Maastricht Treaty created the EU
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Environmental measures are limited if they restrain trade
NAFTA makes no provisions between environmental standards and a population’s lifestyle
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Comparing unit labor costs among nations
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Special 301’s purpose
Special 301’s requirements
Other aspects of 301
May add to the list of “priority” foreign countries at any time
Has power to revoke prior foreign country status at any time
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Who can sue for extraterritorial antitrust violations
Who can be sued
Seeks to punish countries who seize U.S. businesses
Is controversial because critics say it violates principles of free economic trade
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Credits