globalEDGE International Business Blog

This is the final installment of globalEDGE's series on global entreprenuership, in celebration of the Global Entrepreneurship Week.

The Impact of Globalization

With the rise of transportation and communications technology, globalization has come and dramatically shifted previously stagnant notions of comparative advantage. In the past, local producers could count on being the most efficient option, because the costs of storing and transporting goods made any long distance selling unfeasible. Now, markets are restructuring because of technological advances, and nations have put in place various restrictions and regulations - for better or worse. Regardless of your opinion on government regulation of markets, legal barriers to trade are a reality facing today's business leaders, and knowing how to successfully navigate the complex web of legal issues related to trade is essential to any successful business endeavor.

Legal Complexities and Large Corporations

Traditionally, large corporations have had the upper-hand in dealing with legal issues, because the law is so complex and it is often hard to find good information. Additionally, large corporations can afford legal teams that can help them understand the law so finding the most efficient supply chain practices becomes a lot easier. The largest corporations can even afford to lobby and shape public policy.

The Balance of Power is Shifting

Despite all this, the same technological advances that gave rise to globalization also work in the favor of small businesses. The internet makes it easier than ever before to find good information about legal barriers to trade and good advice. You don't need a legal team anymore to understand trade law, the advantages large corporations used to enjoy are now disappearing.

Useful Resources

Even though the internet has the potential to work strongly in your favor, you can't harness the power of it unless you know where to go to obtain good legal information. Fortunately, globalEDGE has plenty of resources on international trade law that could help guide you through the process.

globalEDGE Modules on Trade Law:

Legal History of International Business - The Legal History of International Business module is set up to help one gain a better understanding of the definition of law and the bases of jurisdiction, sources of international law and how international law can conflict with domestic law, sovereign immunity and acts of state, and national treatment and most favored nation status. This module will be able to help those looking to launch their products and services internationally by laying out some of the political and legal aspects of doing business in multinational markets.

Legal Framework of International Business  - The Legal Framework of International Business module can help one better understand the laws of governance of the sea and air, and how such rules and regulations can impact international business as well as advertising laws throughout much of the world. This module will be able to help those looking to launch their products and services internationally by laying out some of the political and legal aspects of doing business in multinational markets. A case study on the U.S. Passenger Services Act is also available.

Legal Systems of the World - The Legal Systems of the World module contains sections on the legal systems of the United States, Japan, and the European Union. After completing this module, one should have a general understanding of the following topics: the constitutional framework of the United States and where foreign affairs power resides in the different branches of government; understanding the deference U.S. Courts give the executive branch on foreign affairs issues; outlining the jurisdiction of the court of international trade; the structure of the Japanese government and the hierarchy of laws in Japan; and Romano-Germanic law and the European Union's legal system.

Tariffs, Quotas, and Non-Tariff Barriers - The Tariffs, Quotas, and Non-tariff Barriers module outlines the following components: the basics behind tariffs and quotas, including under what circumstances the WTO/GATT prohibits tariffs and quotas; the various types of non-tariff barriers that countries use to restrict imports; how the GATT has impacted the creation of non-tariff barriers; different types of subsidies; countervailing duties; the purpose and importance of the Harmonized Tariff Schedule; the basics of U.S. customs law; and the methods used by customs to determine an imported good's value when assessing tariffs. Also included is a case study on the recent disagreement between the U.S. and the EU over bananas.

General Resources about Trade Law

The Law of International Trade: A Business Overview - Produced by Warner Norcross & Judd LPP, this globalEDGE exclusive provides a thorough yet concise synopsis of major issues related to international trade law. Subjects covered include: Exporting, Importing, Contracts for the Sale or Purchase of Goods, Joint Ventures and Direct Investment, and a special section entitled "Traps for the Unwary." This is a must read for all business persons!

Juris International - Juris International is a project lead by the International Trade Centre (ITC-UNCTAD/WTO). The site is accessible in three languages: English, French, and Spanish. It features a vast collection of international legal instruments, model contracts, contract drafting guidelines, a listing of dispute resolution centers, and much more.

Lex Mercatoria: International Trade and Commercial Law Monitor - A great source for legal information on international trade and commercial law. The information is categorized into topics. Some sample topics include: tax and financial regulation, commercial arbitration, carriage transport and maritime law, environmental law, intellectual property, and electronic commerce.

Welcome to the fourth installment of our special globalEDGE Series on Global Entrepreneurship. Today we'll focus on probably the most important aspect of international entrepreneurship, or even business in general: people. The human element of entrepreneurship, as we have discussed previously, is what drives innovation and creation. In this post, we'll specifically discuss how the people you meet and work with are key to expanding your business internationally, how to find those people, and how to keep them interested in working with you.

This is the 3rd post in a 5 part series on global entreprenuership, in celebration of the Global Entrepreneurship Week.

Now that you've decided to expand your small business internationally, you have to make some big decisions about what you are going to do next. You'll have to make judgments regarding many important questions, such as: Where is the best place to sell your product? What markets are particularly receptive? What is the best way to market your product in different regions? Is there a good supplier, or partner near your international target market? These questions are all fundamentally about strategy.

Welcome to the second installment of our special series on global entrepreneurship in celebration of Global Entrepreneurship Week! Yesterday, we discussed the emerging role of small businesses in a globalized market and the different factors that are important to consider when deciding to begin exporting. Today, we'll focus on one of the factors that have made it much easier for small business to conduct business abroad: the growing accessibility of technology.

Today marks the first day of the first annual Global Entrepreneurship Week! As we mentioned last Friday, our celebration of the general themes of entrepreneurship will take place within the specific context of the global marketplace. This is the first article of a 5 part series on global entrepreneurship which will focus on the importance and accessibility of becoming an entrepreneur on an international scale. As always, we intend the blog to be a part of a conversation - not a lecture - so feel free to comment.

Beginning Monday, November 17th, the globalEDGE International Business Blog will feature a special series in recognition of Global Entrepreneurship Week, an annual event dedicated to inspiring the next generation of great minds to focus their passions and pursue them through entrepreneurship. You can check out more information about the week itself at unleashingideas.org/theweek. In our celebration of the week's general themes of innovation and creativity, we will focus on the international aspects of entrepreneurship, both the obstacles and the rewards, by collecting useful resources on key topics.

Specifically, the topics are:

• how international entrepreneurship is important and within reach
• the importance of technology as an enabling force for international expansion
• the role of knowledge and research in the international decisionmaking process
• the process of networking, making deals, and forming partnerships across borders
• the logistics and legal issues involved in trading internationally

Join us next week in what we hope to be an exciting and informative event!