International Business Law



International Business Law

Aim of the Report

The scope of the paper is to expand the boundaries of my knowledge with the factual as well as conceptual understanding of the learning outcomes proposed for the report. The paper comprehensively works on each of the learning outcomes to be assessed and entails proper and rational finding based on the research of the international business law.

Question 1

Embedded Market

Communities of all these kinds are the mechanisms through which, modern economies operate and progress. This is the economics of the embedded market, in which economic activity is conducted through social, political and cultural institutions. An embedded market the attempts to define precise boundaries between state and market and to impose a dichotomy between public and private action, fails to acknowledge the real and rich complexity of modern economic life (Hassan, 12-84).

Analysis of the Arguments by Dani Rodrik and Schaffer

Dani Rodrik is a professor at Harvard and a leading scholar of globalization and Economic Development. His writings are a compelling combination of international and development economics, history, and political economy, and challenges of prevailing orthodoxy about Policies that promote best growth. His most recent book is The Globalization Paradox: Democracy and the Future of the World Economy (Abdallah, 31-56).

Rodrik develops his critical analysis of the effects of globalization. First, he deals with the effects of international trade on labor market and employment conditions. In this case, Rodrik points to the irony that the economists reject any responsibility in international trade for the problems of labor markets, and opening economies. International trade increases just because of the welfare of trading partners since it alters the relative scarcity of production factors. Too many economists do not take such fine distinctions and they tend to push concerns about globalization to blatant protectionist motives or ignorance, even when it comes to real ethical concerns here. By ignoring the fact that international trade sometimes not always is well accompanied by a redistribution of income, they fail to adequately engage in public debate and the opportunity for a more robust defense of the trade fail where ethical concerns are not justified. While globalization raises difficult questions about the legitimacy occasionally to their redistributive effects, we should not automatically respond with trade restrictions. It is important to consider many difficult trade-offs, including the consequences for other people around the world that can be significantly poorer than those who suffer in their own country.

Schaffer's approach and hypothesis is that IBTs comprising trade (sales transactions), technology and intellectual property licensing, plus foreign direct investment (FDI), are inherently riskier than their domestic equivalent DBTs, comprising transaction risk, political risk and foreign law risk. The precise nature of risk isn't exactly defined but is used in its non-technical ordinary usage of the (greater) likelihood of some adverse event occurring in an IBT than its equivalent DBT. That single term covering what economists have identified as: risk, uncertainty and ambiguity (Al-Jahri, 72-112).

Risk concerns a fixed probability distribution of outcomes as originally described by Knight in ...