Decoding International Business Law
International business law refers to the numerous laws and regulations that govern the marketplace across international waters. Such laws begin with the World Trade Organization, an international organization whose primary purpose is to manage and oversee trade rules between nations. According to its website, the WTO provides "a common institutional framework [that] administers, institutions, and agreements" to ensure fair and efficient trade of goods, services, and intellectual property between trades and nations. To that end, WTO member countries constitute over 97 percent of global trade. For one, it ensures that international trade is open and without impediment to foreign companies; two, it protects nations from foreign countries that infringe on domestic business; and three, it prevents countries from restricting free trade within their domestic borders . That said, international business law affects nearly everyone involved in global commerce, whether they are directly a party to the transaction as in the case of importers or exporters, or indirectly a party to the transaction as in the case of private and public persons who rely on the imported goods and services. In particular, international business law is intended to prevent trade wars, for example, where countries who unfairly subsidize their transportation industries (by lowering transportation taxes) to promote imports would then prevent free trade between nations, all to the detriment of consumers who would be charged higher prices. It does this by providing member nations the ability to regulate its own domestic law while still being cognizant of the importance of open-minded trade.
Responsibilities of International Business Lawyers
Representing either buyers or sellers in global transactions, it is the primary responsibility of international business lawyers to ensure that a business or corporation is complying with all relevant laws and regulations. A majority of the duties of such a lawyer will fall within three primary areas — contract negotiation, regulatory compliance and dispute resolution. An international business lawyer is responsible for contract negotiation, whether it be for the purchase of raw materials or for obtaining services from a supplier. When negotiating international contracts, details must be made explicit to avoid any misunderstandings in the future. International business lawyers, then, will draft commercial contracts in accordance with their client’s wishes as well as legal requirements. They will also review any contracts that may have been prepared by the other party in order to identify any red flags that would indicate potential dispute in the future. Profoundly important in negotiation, regulatory compliance is a key responsibility for international business lawyers. As business and trade crossing overseas borders is subject to both national and international laws, lawyers will need to ensure that business transactions comply with domestic and foreign regulations as well as international law. Furthermore, an international business lawyer will be responsible for registering their client’s intellectual property in other countries and jurisdictions in order to keep it safe from would-be thieves. After all possible measures have been taken to comply with the law, there is always a chance that a dispute could come up between an international business and one of its overseas partners. If a disagreement occurs, it will be in the interest of all parties to try to resolve the conflict as quickly (and legally) as possible before more bad feelings are created or even worse, a lawsuit. International business lawyers can act as consultants for their clients — guiding them through litigation or arbitration and providing them with the resources to defend themselves against any allegations or charges levied.
International Business Lawyers: Skills and Qualifications Required
The first thing to know is that international business law is an academic specialization. Such lawyers are by and large those smart enough to have attended a high-quality law school. What this means is that our international business lawyers know how to research, analyze, write, and they tend to be good at dealing with ambiguity.
But with international business law, this intelligence must be combined with clear thinking and practical experience in both business and the law.
Been there, done it. Though international business lawyers are used to dealing with the many risks inherent in operating internationally or with foreign based companies, they still need to be prepared for the worst. They need to understand how to spot common legal problems and how best to minimize these problems for their clients.
A background in business. International business lawyers often find themselves sitting on the business side of the negotiating table, so they truly need to understand how businesses work and what their clients are trying to accomplish. Many international business lawyers are business owners themselves. Pretty much all have taken courses in business and economics. Some have even worked as in-house staff at businesses themselves. Some have MBAs. Some have previous careers in business prior to going to law school.
Cross cultural skills. Good international business lawyers should be able to assess when different cultures will approach problems differently and then adjust accordingly. They should be able to determine who can and cannot speak English (and/or foreign languages), and then respond accordingly. They should be adept at realizing when their communications may be tied to cultural norms.
Foreign languages. This is a big one. An ability to speak foreign languages is generally to your advantage when hiring an international business lawyer, but it is noted in particular because keeping track of what is being said between two foreign language speakers in an email exchange or a conference call is usually very difficult at best. If you do not speak a sufficient language to understand what is being said, have someone follow along in parallel who does. Otherwise, you risk losing important information to which you should have access.
Few things are more dangerous than being forced to rely on translations by somebody who does not understand the legal system or the underlying business operation or relationships.
Familiarity with foreign legal systems. To the extent possible, good international business lawyers must understand how other countries’ laws will apply to the same issues you are dealing with. This may mean having a sufficient command of a foreign legal systems to understand how it compares with yours and how its "quirks" differ from what you are accustomed to. It may mean understanding enough of the foreign laws in question to be able to refer you to someone who is qualified to assist you in your matter there.
It is also imperative for the international business lawyer to understand how this foreign legal system treats his or her own legal system, and vice versa.
Common Issues for International Business Lawyers to Navigate
The challenges for any lawyer are plenty, but they multiply for the company whose activities regularly take them across borders. They face complex issues which need to be addressed in a way that treads the fine line in the space of competing judicial interests. While different jurisdictions affect specific markets, inconsistencies and contradictions can impact the company as a whole, and may require a complex navigation based on sophisticated understandings of the market in question . The need to adapt legal concepts to national variations presents a challenge to the international business lawyer, while the benefits of the harmonisation of commercial law across Europe cannot be denied. The corporate lawyer will often need to draft complex agreements that incorporate a number of country-specific factors in order to protect the client company. A lack of understanding of cultural factors may complicate matters further, making local knowledge invaluable. Sometimes, broader constitutional questions may also have to be considered, making the international business lawyer an essential conduit to helping the company successfully navigate its global operations.
How A Company Benefits From International Business Lawyers
As an international business lawyer, the reality is that the success or failure of a company’s endeavors hinge on the level of attention it gives to carefully analyzing each element of its plan to expand outside the borders of the United States. Companies need to ensure that they are in compliance with the local laws of the countries in which they wish to operate. Foreign countries have legal systems and regulations that are very different from those in the United States. Using an experienced international business lawyer is the most efficient and effective way to address these issues and make smart international business decisions.
The old adage "an ounce of prevention is worth a pound of cure" applies particularly well to international business. Smart business planning that contemplates these potential challenges BEFORE the company begins operating in a new country can mitigate the damage in the event of a problem by avoiding missteps before they occur.
In the global marketplace, international business lawyers play a critical role that may include:
Selecting an International Business Lawyer
Once you’ve acknowledged the need for an international business lawyer, the next step is narrowing down your options to find someone who can meet your needs. Ideally, you’ll want to find an international business lawyer who has relevant experience and expertise. When evaluating the relevant skill set of an attorney, it can be helpful to ask questions such as whether they’ve worked with clients in your particular industry or what countries they have dealt with in the past. Finding an attorney who has experience with prior cases that are similar to yours will give you confidence that they can help you navigate the complexities of your situation. In addition to experience , the successful track record of an international lawyer is a good indicator of whether they’ll be able to meet your needs. Attorneys often display their accomplishments on their websites, including relevant statistics and testimonials. While these claims coming directly from the lawyer may be one-sided, they can still be useful for beginning your search. It’s also possible to turn to third-party rating services for an objective review of someone’s reputation. Some resources to check are The Best Lawyers in America, the American Bar Association, Martindale-Hubbell or Avvo. Finally, to get some insight into an international lawyer’s approach and how they operate, you could contact their prior clients for references.