INTERNATIONAL LEGAL FRAMEWORKS AND BUSINESS

Transcript:INTERNATIONAL LEGAL FRAMEWORKS AND BUSINESS:
INTERNATIONAL LEGAL FRAMEWORKS AND BUSINESS DEVELOPMENT IN MALAWI ©Kalekeni Kaphale, SC MEANING OF LAW AND INTERNATIONAL LEGAL FRAMEWORKS Law is defined as the various sets of rules that govern human conduct in most spheres of life, including in commerce and trade. Laws can be municipal, meaning internal laws enacted by a country’s legislature and applicable in the particular country or jurisdiction, or laws can be international, meaning binding on States and their citizens. International laws are legal rules or provisions that are binding on States and a set of these in any particular field will constitute a framework. THE INTERNATIONAL DIMENSION OF BUSINESS The world is becoming a global village This is the so- called ‘ post geography’ era, where political boundaries are less a barrier in the face of an explosive growth of global trade and investment. Local businesses must trade with foreign nations and foreign goods are prevalent within national borders and these affect business growth and development. Outside national boundaries, there are international laws that affect business locally and internationally and it is these that the presentation will focus on. THE ROLE OF LAW IN BUSINESS DEVELOPMENT Law plays a key role in business development in general ( as they regulate various aspects of business) and a pivotal role in the growth of private business in particular. The establishment of the rule of law at domestic level attracts private investment as it creates stability and predictability where business risk may be rationally assessed, property rights, contractual rights and court judgments respected. The rule of law also gives credibility to commitments on the part of governments and the reliability and enforceability of appropriate rules. This leads to lower transaction costs, greater access to capital and maintenance of a level playing field. Rigorous regulatory regimes also thrive where there is respect for the rule of law. A BROAD OVERVIEW OF SOURCES OF INTERNATIONAL LAW RELEVANT TO BUSINESS In the field of commerce and trade, at international level, there are the following sources of law: (a) The law merchant or lex mercatoria. (b) International and regional instruments. (c) bilateral treaties (d) harmonized laws and model laws (e) contractually incorporated rules and trade terms promulgated by international organizations, e.g Uniform Customs and Practice for Documentary Credits ( UCP 600), ICC’s Incoterms etc THE LEX MERCATORIA As indicated above, these are trade customs and usages in the international business sphere. Established by