International treaties Affect International Business Law - Essay Example

International treaties Affect International Business Law The international law is a modern framework for the development of current business practices. There is no doubt that international businesses are connected and nowadays they are in a great need of the formation of international treaties and conventions. International treaty can be defined as an agreement under the guidelines of the international law which occurs in the form of a protocol, covenant, or exchange of letters (Hurd). International business law depends on the formation of new treaties, conventions and any other regulations of international businesses.

International organizations are focused on uniformity of their activities and they take great care to abide by the international treaties of the international businesses. In spite of certain structured forms, the rules for treaties’ compilation are the same. Two parties which are having a common deal should act in compliance with obligations outlined in treaties. In the face of the modern international organizations, international businesses should act with respect to the guidelines, conventions, treaties or any other documents issued by the organization of the United Nations, WTO or others.

Business is governed by many countries in accordance with the principles of international regulations and the international law. The United Nations outlines specific requirements for international businesses in the spheres of trade and services. For example, the international trade of goods is developed under the influence of relevant conventions and treaties of the international law. Moreover, barriers of international trade can be removed and uniformity in the international market can be maintained.

International trade can be divided among 65 member countries and every participant can bring in something new to the existent international treaties or laws (Hurd). The objectives of the international treaties can be the following ones: they can increase profits of economy; improve and foster participation of contractors in spite of the nationality; promote international trade, etc (Jacobs). Moreover, international competition in the market is also fostered in terms of international treaties.

The main advantage of international treaties is the possibility to outline equal conditions for all participants (both suppliers and contractors) and promote integrative, fair and transparent policy. For example, with a rapid expansion of the international trade, the US tax system has significantly changed. There are many governments which are focused on tax reforms. International players are very much focused on tax treaties to regulate misunderstandings in the area of taxes. Kirsch states the following: These treaties serve a dual purpose: they eliminate or mitigate the potential double taxation that might otherwise arise when a resident of one country receives income that has a connection to another country, and they facilitate the sharing of information between the tax authorities of the treaty countries in order to limit opportunities for tax evasion (1065).

The OECD Model Treaty is widely used in the US. New global economies are regulated by a variety of these small treaties, conventions and regulations. International treaties and their importance for different countries can be interpreted in the following ways: business is transacted, criminals are eradicated, airplanes fly and ships float… (Waldron; Hurd). International trade depends on different types of regulations and conventions. As a result, international business law provides different considerations about the given state of events in the international arena.

Actually, legal hurdles and irresponsibility of business actors can be regulated in terms of international treaties and conventions. Global patents, global protection and many other aspects of international activities of any country are regulated in terms of international conventions and treaties (Turner). WTO contributed much to solve this problem and issued in 2003 the Agreement on Trade Related Aspects and Intellectual Property Rules to facilitate the process of new medicine assessment and evaluation for developing countries.

Regulations in the sphere of investments are another important aspects considered in terms of the International Law. It is appropriate for the developing countries to sign bilateral treaties with the main goal of having opportunities of direct investments. Though member countries can promote their business ties, the can be lacking special care or concern. That is why there is a great need for international treaties, which determine further development of international business law, reflect current changes and adopt fluctuations of the international market.

Modern businesses are going global, and it is not unnatural to exceed the limits of the local businesses and domestic markets. Most companies want to reach a global height and are much focused on the international law. Works Cited Hurd, Ian. "Law and the Practice of Diplomacy." International Journal 66.3 (2011): 581+. Questia. Web. 28 Sept. 2012. Jacobs, Dennis. "What Is an International Rule of Law?" Harvard Journal of Law & Public Policy 30.1 (2006): 3+. Questia. Web. 28 Sept. 2012. Kirsch, Michael S.

"The Limits of Administrative Guidance in the Interpretation of Tax Treaties." Texas Law Review 87.6 (2009): 1063+. Questia. Web. 28 Sept. 2012. Turner, Robert F. "Constitutional Implications of Senate "Holds" on Treaties and Diplomatic Nominations." Texas Review of Law & Politics 11.1 (2006): 175+.Questia. Web. 28 Sept. 2012. Waldron, Jeremy. "The Rule of International Law." Harvard Journal of Law & Public Policy 30.1 (2006): 15+. Questia. Web. 28 Sept. 2012.