International Business Risks Essay Example | Topics and Well Written Essays - 2000 words

International Business Risks - undertake ExampleSales Convention and UNIDROIT Principles of International Commercial Contracts be quite prominent.For the understanding of the international communication channel the legal system of a country is essential, as the business practices of a certain county are cosmos regulated by its polices. These business regulations set out the ways in which the business transactions are to be carried out and in any case define the liabilities and privileges to the parties involved in the transaction (contract).There are generally four basic legal systems that are being practiced around the world. Firstly it is the Muslim Law, secondly the Common Law, thirdly the Civil or Coded Law, and lastly the Marxist Legal System. They are discussed as followsThe Islamic law is developed from the interpretation of the Holy Book Quran Majeed and the Hadith i.e. practices of the Prophet Mohammad P.B.U.P. The philosophy of law in Islamic community is greatly d ifferent from the one that is practices in the Western Countries.One the near important aspect of the Islamic law is the undesirability of payment or receipt of interest. This prohibition of interest had also largely influenced the business and banking practices, though, the sanctity of contracts, risk sharing, individualistics rights and duties, and property rights are wel semend. Moreover, investments in casinos, gambling and alcohol are strictly prohibited.Due to the restrictions discussed above, ... Instead of money borrowing, businesses have evolved to rely on leasing arrangements for the acquisition of fixed assets. In case of banks largely in Iran and also Pakistan fixed service charges are being charged or else than the interest charge, while the depositors on the other hand are being provided with shares rather than interest payments. (Aswathappa, 2003)2. socialistic LawThis system of law has developed from the Marxist socialist system and is being practiced in the form er communist countries in some or the other forms. A crucial is being compete by ideology. In contrast to the civil law code those are being incorporated by governments of different point of views, the socialist codes are meant for the societal and personal transformation. This system is not a fixed set of rules, but actually intends to attain a Communist society.China and Russia are the two countries which come to ones thought when talking of Communism. As there is no set of rules, both of the countries have adopted mixed paths for their respective economic and political development.3. Common LawThe fundamental principles of the Common law come from the position law. The common law has evolved over the years from the collective opinion of the judges and from decisions given in individual cases. A majority of commercial law such as contracts, agency and torts are construed from the principles that emerged from individual quarrels that were settle in antagonist procedure.One of the key aspects of the common law is this that it is being maintained that similar decisions should be given out for similar cases. Due to this reliance on the decisions of the earlier cases enables the businessmen to shape