Aantekeningen recht hoofdstuk 1
The success or failure of doing business abroad is determined not only by the content of the
contract of sale but also by the economic and political environment in which the transaction
take place.
In a world where the governments and economics of countries are becoming increasingly
unstable, it is important not to lose sight of this changing landscape and the risks involved
for companies who sell their products abroad.
- Macro risk – country related
- Micro risk – Sector related
How to measure political risk:
- What type of indicators?
- How to measure or quantify them?
- What scale should you give them?
- What does each indicator measure?
How to interpret political risk:
1. Policy making is important because as a business or investor, there is lots of
uncertainty around the future.
2. Protection of property rights is important, because if the government seizes
property, then businesses will not want to invest.
Political risks consist of three major categories:
- foreign policy *buitenlands beleid
- domestic policy *binnenlands beleid
- economic policy *economisch beleid
Foreign policy risks
Foreign policy risk, including war, make it impossible to deliver goods or to get paid. Also, an
embargo against a country can result in severe economic damage for a seller who is not
allowed by his government to deliver the goods he has sold to a country which is hit by an
embargo.
* Een embargo is in de economische politiek een verbod op handel met een bepaald land.
Denk bijvoorbeeld aan de Verenigde Naties die een embargo hebben tegen Iran en Noord
Korea.
Although war and embargos constitute possible risks, there are not the greatest risk. They
do not happen very often and when they do, they can be anticipated. The greatest risk to
individual contracts of sale is restrictions on trade. Because politicians try to protect their
national industries by implementing trade restrictions.
State aid to individual companies or sectors in the economy makes it difficult for foreign
companies to compete with their products.
,A country can decide to print more money. More money leads to a depreciation the
currency against others and it makes it cheaper for foreigners to buy products comping from
the devaluating country.
If a government subsidizes consumption this is bad news for producers of competitive
products. The non-subsidized product becomes more expensive relative to the subsidized
product. If a country subsidizes a product which is exported, competitors in the importing
country is in a disadvantageous position: their prices will probably be higher.
Reasons why governments aim to control the export of goods:
- restrictions on the sale of technology or weapons to other countries to protect
national security
- preservation of natural recourses
- to encourage the supply of raw materials to local industries
Import bans are used by governments seeking to protect existing domestic industries and
reduce the country’s dependence on imports. An import ban is advantage for domestic
producers because they can sell their products more easily and at higher prices.
Domestic policy risks
In Indonesian Archipelago and off the coast in Nigeria, India, the Philippines, and Peru is still
piracy. These attacks pose a considerable risk to cargoes and seamen.
Also terrorism is a domestic policy risk. It is a great risk to commercials transactions in some
parts of the world. See page 24.
Economic policy risks
A chance in the economic policy of a country can have a major impact on an individual
transaction.
In certain circumstances a country institutes capital controls to stop money leaving the
country. These measures are taken in situations of economic upheaval when investors lose
confidence that they will get their money back.
If a government nationalizes a company, in most cases it expropriates the owners of the
company. in 2013 the Dutch State nationalized SNS Bank.
Credit insurance
For protection against these risks a seller can take out a trade credit insurance. Trade credit
insurance is an insurance which protects the seller against non-payment by the buyer, for
example when the buyer is bankrupt. See page 27.
Why International Economic Cooperation?
- Facilitate trade
- More competition, lower prices, more quality
, - More prosperity
- Better competitive position in world trade
- Political Stability & Peace
Internal market
That is free movement of goods, services, persons and capital.
Economic and Monetary Union:
- Internal market
- One coin
- One central bank
- Joint economic policy
- Soevereiniteit is de mogelijkheid om bindende wetten te maken, uit te voeren en
daarover bindend recht te spreken.
- Intergouvernementele organisaties: organisaties tussen lidstaten zonder echte
soevereiniteit ( bijvoorbeeld VN)
- Supranationale organisaties: de organisatie staat boven de lidstaten en heeft wel
soevereiniteit ( EU)
- Non gouvernementele organisaties: opgericht door private personen zonder
soevereiniteit ( Greenpeace, War Child, ……..)
Soevereiniteit omvat:
• Wetgeving
• Uitvoering
• Rechtspraak
Aantekeningen recht hoofdstuk 2
The main sources of international trade law are:
The success or failure of doing business abroad is determined not only by the content of the
contract of sale but also by the economic and political environment in which the transaction
take place.
In a world where the governments and economics of countries are becoming increasingly
unstable, it is important not to lose sight of this changing landscape and the risks involved
for companies who sell their products abroad.
- Macro risk – country related
- Micro risk – Sector related
How to measure political risk:
- What type of indicators?
- How to measure or quantify them?
- What scale should you give them?
- What does each indicator measure?
How to interpret political risk:
1. Policy making is important because as a business or investor, there is lots of
uncertainty around the future.
2. Protection of property rights is important, because if the government seizes
property, then businesses will not want to invest.
Political risks consist of three major categories:
- foreign policy *buitenlands beleid
- domestic policy *binnenlands beleid
- economic policy *economisch beleid
Foreign policy risks
Foreign policy risk, including war, make it impossible to deliver goods or to get paid. Also, an
embargo against a country can result in severe economic damage for a seller who is not
allowed by his government to deliver the goods he has sold to a country which is hit by an
embargo.
* Een embargo is in de economische politiek een verbod op handel met een bepaald land.
Denk bijvoorbeeld aan de Verenigde Naties die een embargo hebben tegen Iran en Noord
Korea.
Although war and embargos constitute possible risks, there are not the greatest risk. They
do not happen very often and when they do, they can be anticipated. The greatest risk to
individual contracts of sale is restrictions on trade. Because politicians try to protect their
national industries by implementing trade restrictions.
State aid to individual companies or sectors in the economy makes it difficult for foreign
companies to compete with their products.
,A country can decide to print more money. More money leads to a depreciation the
currency against others and it makes it cheaper for foreigners to buy products comping from
the devaluating country.
If a government subsidizes consumption this is bad news for producers of competitive
products. The non-subsidized product becomes more expensive relative to the subsidized
product. If a country subsidizes a product which is exported, competitors in the importing
country is in a disadvantageous position: their prices will probably be higher.
Reasons why governments aim to control the export of goods:
- restrictions on the sale of technology or weapons to other countries to protect
national security
- preservation of natural recourses
- to encourage the supply of raw materials to local industries
Import bans are used by governments seeking to protect existing domestic industries and
reduce the country’s dependence on imports. An import ban is advantage for domestic
producers because they can sell their products more easily and at higher prices.
Domestic policy risks
In Indonesian Archipelago and off the coast in Nigeria, India, the Philippines, and Peru is still
piracy. These attacks pose a considerable risk to cargoes and seamen.
Also terrorism is a domestic policy risk. It is a great risk to commercials transactions in some
parts of the world. See page 24.
Economic policy risks
A chance in the economic policy of a country can have a major impact on an individual
transaction.
In certain circumstances a country institutes capital controls to stop money leaving the
country. These measures are taken in situations of economic upheaval when investors lose
confidence that they will get their money back.
If a government nationalizes a company, in most cases it expropriates the owners of the
company. in 2013 the Dutch State nationalized SNS Bank.
Credit insurance
For protection against these risks a seller can take out a trade credit insurance. Trade credit
insurance is an insurance which protects the seller against non-payment by the buyer, for
example when the buyer is bankrupt. See page 27.
Why International Economic Cooperation?
- Facilitate trade
- More competition, lower prices, more quality
, - More prosperity
- Better competitive position in world trade
- Political Stability & Peace
Internal market
That is free movement of goods, services, persons and capital.
Economic and Monetary Union:
- Internal market
- One coin
- One central bank
- Joint economic policy
- Soevereiniteit is de mogelijkheid om bindende wetten te maken, uit te voeren en
daarover bindend recht te spreken.
- Intergouvernementele organisaties: organisaties tussen lidstaten zonder echte
soevereiniteit ( bijvoorbeeld VN)
- Supranationale organisaties: de organisatie staat boven de lidstaten en heeft wel
soevereiniteit ( EU)
- Non gouvernementele organisaties: opgericht door private personen zonder
soevereiniteit ( Greenpeace, War Child, ……..)
Soevereiniteit omvat:
• Wetgeving
• Uitvoering
• Rechtspraak
Aantekeningen recht hoofdstuk 2
The main sources of international trade law are:
