MODULE 1
INTERNATIONAL AND GLOBAL MANAGEMENT
The central aim of this module is to explore and discuss the nature of international and global
business and to get an understanding of the theoretical background and of the motivations and
modes of a multinational enterprise. It has to be questioned if „global“ and „international“ are
simply synonymus or if the term „global“ has to be used in a special sense to identify a new
stage of strategic orientation, involving a qualitative paradigm shift in which global integration
and coordination of activities become central to competitive strategy.
Part one of the module contains apart from the introductory aspects mentioned above the
fundamental criteria of strategy evolution and implementation.
The focus of part two is first how to organize the international and global business operations
and second how to face the challenge of designing an appropriate organizational structure that
promises to achieve the multiple strategic objectives of international and global business.
MAIN FOCUS:
Part one
 The nature of international and global business
-
why firms engage in international business?
theories of the multinational enterprise
modules of international business or : what is global business?
the multinational company
 Strategic management and globalization
-
strategic complexity in international business?
basic concepts of strategy evolution in international business
analysis of the global economic, political and legal environment
analysis of the company
strategic planning and decisions
network strategies and strategic alliances
strategy formulation
strategy implementation and control
MAIN FOCUS:
Part two
 Organizing international and global business
-
international operations management
e-business applications
organizational communication flow between MNC headquarters and
subsidiaries
international comparative industrial relations
business negotiations in the international environment
planning and control of international operations
 Organization structures of international and global business
-
basic organization requirements
functional structure
regional structure
international subsidiary structure
product structure
strategic business units
international matrix organization (advantages/disadvantages)
designing the international organization structure
spans of control
tall and flat structures
bureaucratic versus flexible structures
strategy and structure
REFERENCES:
-
Robin John (Ed.), Global Business Strategy, 1998
Alan M. Rugman,, Thomas L. Brewer (Ed.),
The Oxford Handbook of International Business, 2001
John D. Daniels, Lee H. Radebaugh, International Business, 9 th Edition 2001
Roger Bennett, International Business, 2nd Edition 1999
Glenn Morgan, Peer H. Kristensen, Richard Whitley (Ed.), The Multinational Firm, 2001
Phillip Brown, Andy Green, Hugh Lauder, High Skills - Globalization, Competitiveness, and Skill
Formation, 2001
André Hülsbömer, Volker Sach, Hrsg., Globalisierung – eine Satellitenaufnahme, 1997
Christopher A. Bartlett, Sumantra Ghoshal, Transnational Management, 3rd Edition 2000
Thomas L. Wheelen, J. David Hunger, Strategic Management and Business Policy, 7 th Edition 2000
Mary Jo Hatch, Organization Theory, 1997
Michael E. Porter, What is Strategy? In: Michael E. Porter, On Competition, 1998
MODULE 2
CROSS CULTURAL MANAGEMENT
The efficient transaction of international business is made more challenging because of several
kinds of obstacles - geographical, financial, legal/political and cultural. Cultural barriers include
several factors that make human interactions more difficult - differences in language, values and
behaviours. In many ways this last category is the most daunting because cultural differences are
often hidden and are certainly the most difficult to quantify.
Culture has a pervasive impact on the management of human resources. Culture influences how
blue and white collar workers respond to monetary and non-monetary incentives, how
international firms are organized and even how executives compose and implement business
strategies (Graham).
MAIN FOCUS:
 The impact of cultural diversity on international business
- costs of cultural mismanagement
- perceptions of other cultures
- the competitive advantage of culture
 Culture: What it is, what it is not and how it directs organizational behaviour
- definitions of culture
- attempts to classify cultures in terms of the importance attached to different
values (Hofstede/Trompenaars)
 The strategic value of cultural differences
- creating sustainable sources of competitive advantage
- approaches to managing cultural differences
- cultural learning
 Advertising across cultures
- global products, global meanings
- value-added approaches to marketing and advertising across cultures
 Managing human resources across cultures
- setting explicit company values world-wide
- selection methods
- career development - career in different cultures
- performance appraisal
- role of HRM professionals in a multicultural world
 Managing alliances across cultures
- strategic rationale for alliances
- role of culture in alliances across cultures
- interaction between national and corporate culture
- managing the process
REFERENCES:
-
J. L. Graham, Culture and Human Resources Management, in: A. M. Rugman, Th. L. Brewer, The Oxford
Handbook of International Business, 2001
L. E. Harrison, S. P. Huntington, Culture Matters, 2000
G. Hofstede, Culture`s Consequences, 1980
L. Hoecklin, Managing Cultural Differences, 1995
F. Trompenaars, Riding the Waves of Culture, 1993
G. Hofstede, Cultures and Organizations: Software of the Mind, 1991
Chr. Brewster, H. Harris (Ed.), International HRM, 1999
H. Dersky, International Management, Second Edition, 1997
MODULE 3
GLOBAL ECONOMICS
Over the past 25 years, international transactions have become increasingly important to many
world economies. This "internationalization“ or "globalization" of world economies has occurred
on all fronts - in the private and public sectors, in input and output markets, in businesses and in
households. What was once uncommon is now common. Products produced elsewhere are now
everywhere. Financial capital flows smoothly from one country to another. As such, all
economies, regardless of their size, depend to some extent on other economies and are affected
by events outside of their borders. Thus, an understanding of Global Economics is vital so that
intelligent decisions concerning international issues, and how it might affect the domestic
economy, can be based on economic, as opposed to emotional, reasoning. This module is an
effort to introduce the student to various international issues facing all nations and to provide
them with the economic tools to address these issues. A discussion of the critics and opponents
of globalization will be included.
MAIN FOCUS:
 Foundation of modern trade theory
- historical development of modern trade
- absolute and comparative advantage of trade
 International equilibrium
 Trade model extensions and applications
 Trade policies: tariff
 Trade policies non-tariff trade barriers
 Trade regulations and industrial policies
 Trade policies for the developing nations
 Regional trading arrangements
 International factor movements and MNEs
 Globalization and its critics
REFERENCES:
-
Robert J. Carbaugh, International Economics, 1999
James R. Markusen, International Trade Theory and International Business, in: Alan M. Rugman,,
Thomas L. Brewer (Ed.), The Oxford Handbook of International Business, 2001
Roger Bennett, International Business, 2nd Edition 1999
John D. Daniels, Lee H. Radebaugh, International Business, 9 th Edition 2001
P. W. Daniels, W.F. Lever (Ed.), The Global Economy in Transition, 1996
The Economist, Globalization and its critics –A survey of globalization, The Economist, September 29 th
2001
Gary P. Sampson (Ed.), The Role of the World Trade Organization in Global Governance, 2001
MODULE 4
MANAGEMENT OF INTERNATIONAL PROJECTS
A project is usually a one time activity with a well defined set of desired final results. Three
paramount reasons have been identified for the emergence of project management:
-
the exponential expansion of human knowledge
the growing demand for a broad range of complex, sophisticated,
customized goods and services
the evolution of world-wide competitive markets for the production and
consumption of goods and services
These forces combine to mandate the use of teams to solve problems that used to be solvable by
individuals (Meredith/Mantel).
The use of project management by international businesses has grown rapidly, especially in the
service sector. Multinational firms apply this tool as very much appropriate to investigate new
market opportunities, to improve the value chain, to initiate internal innovations etc. Very often
projects are the only feasible way to accomplish certain goals. Nowadays project management
competence is recognized as a “career path” in a growing number of firms. The diversity of skills
required for the manager of a project is a good proof of management capability in general.
MAIN FOCUS:
 Projects in contemporary business organizations
 Project selection
- project selection models
- analysis and evaluation
- project phases and life cycle
 Project manager
- special demands on the project manager
- selecting the project manager
 Project organization
- choosing an organizational form
- the project team
 Project planning
- initial project co-ordination
- systems integration
- stakeholder analysis
- sorting out the project
- work breakdown structure and linear responsibility charts
 Negotiation and conflict resolution
 Project implementation
- Budgeting and cost estimation
MAIN FOCUS ONGOING:
 Scheduling
- network techniques: PERT and CPM
- Gantt charts
 Resource allocation
 Monitoring and information systems
- the Planning - Monitoring - Control cycle
- information needs and the reporting process
- computerized project management information systems
 Project control
- control as a function of management
- balance in a control system
- control of creative activities
- control of change
 Project auditing
- purposes and essentials of an audit
 Project termination
- varieties of termination
- termination process
- final report
 Multicultural, environmental and unsolved issues
- problems of cultural differences
- multicultural communications and managerial behaviour
- impacts of institutional environment
- unsolved problems: Need for corporate information systems, for conflict
resolution in matrix management and for rewarding excellence
REFERENCES:
-
J. R. Mantel Jr., Project Management, Third Edition, 1995
RKW-Handbuch Projektmanagement Fachmann, Bd. 1 und 2, 4. Aufl.,1998
MODULE 5
BUSINESS POLICIES AND ETHICS
There are many ethical issues in international and global business. Therefore this module
highlights how important it is for companies to address ethical issues and how they can in
practice go about addressing these issues. Balancing the economic, legal and social responsibility
is a major challenge of management today. Multinational firms are more likely to gain public
approval and society legitimacy if they adhere to basic ethical principles. Corporate policy in a
long term perspective will only be successful and satisfying for all stakeholders involved if an
ethical orientation is integrated into the overall business strategy.
Corporate ethical action can be improved by creating or revising various organizational
safeguards, such as codes of ethics, ethics committees and employee ethics training.
MAIN FOCUS:
 Ethical dilemmas in business
 The meaning of ethics
 What is business ethics?
 Business ethics across organizational functions
 Why ethical problems occur in business
 Ethics in a global economy
 Ethics, law and illegal corporate behaviour
 The corporation and its stakeholders
- business - government - society: An independent system
- the stakeholder concept
 Forces shaping business-society relations
 Ethical reasoning and corporate programs
- core elements of ethical reform
- analyzing ethical problems in business
- making ethics work in corporations
REFERENCES:
-
Horst Siebert (Ed.), The Ethical Foundations of Market Economy, 1994
J. E. Post, A. T. Lawrence, Business and Society, 9 th edition, 1999
J. R. Lucas, The Responsibilities of a Businessman, in: Chr. Cowton, R. Crisp (Ed.), Business Ethics, 1998
Chris Moon, Clive Bonny (Ed.), Business Ethics, 2001
Th. Donaldson, Values in Tension: Ethics away from home, in: J. Magretta (Ed.), Managing in the New
Economy, 1999
R. D. Haas, Ethics - A Global Business Challenge, in: B. N. Kumar, H. Steinmann (Ed.), Ethics in
International Management, 1998J. W. Weiss, Business Ethics, 2 nd Edition, 1998
K. M. Leisinger, Global Responsibility for Sustainable Development: The Role of Multinational
Corporations, in: B. N. Kumar, H. Steinmann (Ed.), Ethics in International Management, 1998
P. H. Werhane, R. E. Freeman (Ed.), Encyclopaedic Dictionary of Business Ethics, 1997
MODULE 6A
INTERNATIONAL FINANCE
International financial management of MNEs requires a sound understanding of the international
financial system and money markets because they need to get access to capital markets in
different countries in order to finance expansion. This module therefore gives an overview of the
different external sources of funds available to companies operating abroad. It enables the
financial management of MNEs to decide if local or international debt markets should be chosen
to raise funds.
MAIN FOCUS:
 Overview of the international financial system and money markets
 Regional financial systems
 International money markets
 International bond markets
 International stock markets
 Foreign exchange markets
 Modern globalization
 International economic and monetary cooperation
 Supervisory capital standards
 Eurocurrency markets
REFERENCES:
-
Michael Bowe, James W. Dean, International Financial Management and MNEs, in: Alan M. Rugman,,
Thomas L. Brewer (Ed.), The Oxford Handbook of International Business, 2001
Tim Dickson (Ed.), Mastering Finance, 1998
Joel Stern, Donald Chew, The Revolution in Corporate Finance, 1998
Robert J. Carbaugh, International Economics, 1999
Richard Schaffer, Beverley Earle, Filiberto Agusti, International Business Law and its Environment, 4 th
Edition 1999
MODULE 6B
INTERNATIONAL FINANCIAL MANAGEMENT
This module deals with the management of working capital in a MNE. Its main issues are
whether to pool money in a central location or leave cash in local subsidiaries, and whether to
centralize or decentralize financial decision making. Furthermore it covers the sources and costs
of funds, the treasury management and the repatriation of profits. Specific emphasis is put on
international risk management because factors in the international financial environment have
important implications for the comparative advantage of MNEs located in different jurisdictions
and risk management plays a critical role in deciding a MNE´s competitive prosperity. Similar
relevance has the international accounting system of the MNE, which must enable the transfer of
assets between nations and hence requires reliable information on the natures and values of those
assets. Financial reports are needed to ascertain the profitabilities of various projects, subidiaries
and types of operation and for presentation to host country governments, shareholders and
prospective investors. Equally, the parent organization must be able to compare meaningfully its
operations in various countries and consolidate subsidiary accounts into enterprise-wide financial
statements. Which difficulties are created for international businesses by the existing differences
of accounting standards has to be taken into account.
MAIN FOCUS:
 Working capital management in MNEs
 Cost of capital for overseas investment
 Multi-national capital budgeting
 International treasury management and repatriation of profits
 Capital investment appraisal
 International risk management
-
-
nature of financial risk
· exchange rate variability
· interest rate variability
· equity market variability
· commodity price variability
· country risk
classification and measurement of risk exposure
management of financial risk exposure by MNEs
 International transfer pricing
 International tax planning
 Financial control in MNEs
REFERENCES:
-
Michael Bowe, James W. Dean, International Financial Management and MNEs, in: Alan M. Rugman,,
Thomas L. Brewer (Ed.), The Oxford Handbook of International Business, 2001
Tim Dickson (Ed.), Mastering Finance, 1998
Joel Stern, Donald Chew, The Revolution in Corporate Finance, 1998
Roger Bennett, International Business, 2nd Edition 1999
MODULE 7
INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM)
The subject of international human resource management is becoming ever more critical for
more and more globally oriented businesses and organizations. This module therefore explores
and delivers the main issues in the scope of IHRM although there is no consensus about what the
term covers. It has to be emphasized that IHRM and expatriate management are not virtually
synonymous because IHRM covers a far broader spectrum: the worldwide management of
people. And it is an eminent strategic issue. The key determinant of effectiveness for
multinational enterprises (MNE) is the extent to which their various operating units across the
world are to be differentiated and at the same time, integrated, controlled and coordinated.
Evidence of different solutions adopted by MNEs to the tension between differentiation and
integration, otherwise termed the „global vs. local“ dilemma, are seen to result from the
influence of a wide variety of exogenous and endogenous factors. Exogenous factors include
industry characteristics such as type of business and technology available, the nature of
competitors and the extent of change and country-regional characteristics such as political,
economic and socio-cultural conditions and legal requirements. Endogenous factors include the
structure of international operations, the international orientation of the organization´s
headquarters, the competitive strategy being used, and the MNE´s experience in managing
international operations (Harris and Brewster).
MAIN FOCUS:
 Relation between international business strategy and strategic IHRM – the added
value of the HR department
 Strategies for IHRM
- need for HRM strategies
- standardization
 International employee relations strategies
- employee relations
- MNE relations with trade unions
- employer´s organizations
- models of high skills in national competition – skill formation systems and
globalization
 International comparisons of HRM practice
- competitive advantage and culture change
- the quest for the multicultural global organization
 Staffing the MNE
- recruitment of managers
- expatriate staff
- selection of staff for foreign postings
- management of an international sales force
REFERENCES:
-
Chris Brewster, Hilary Harris, International HRM, 1999
John L. Graham, Culture and HRM, in: The Oxford Handbook of International Business, 2001
Michael Allen, Edward Finn, Globalization and human resources management, in: Robin John, Grazia
Jetto-Gillies et al., Global Business Strategy, 1998
Phillip Brown, Andy Green, Hugh Lauder, High Skills, Globalization, Competitiveness, and Skill
Formation, 2001
Roger Bennett, International Business, 2nd Edition 1999
John D. Daniels, Lee H. Radebaugh, International Business, 9 th Edition 2001
MODULE 8
LOGISTICS FOR GLOBAL MANAGEMENT
By this module the students will understand the relationships among the logistics components
and relate the logistics function to other operations of the organization, as well as to global
suppliers and customers.
The module is designed to familiarize with main issues in global logistics. Since this is an
overview course of a rapidly developing topic area in Global Business, emphasis will be
given to those issues that have to date received the most attention, and to additional issues that
deserve attention. Topics are roughly divided into four categories:
1) global business environments
2) logistics concepts, functions interfaces and related issues
3) logistics systems components
4) supply chain management
Each session covers a specific issue in global logistics. The course will follow a
lecture/discussion format. As such, students are expected to be fully prepared and actively
participate in class discussions. Reading assignments are drawn from a wide range of journals,
text books and case studies.
MAIN FOCUS:
 Global Business Environment
- global activities
- regional economic integration
- emergence of the IT era
- global logistics importance
- global logistics components
 Logistics Interfaces
- cross functional perspective
- logistics and the managerial function
- logistics and the marketing function
- logistics and the manufacturing function
MAIN FOCUS ONGOING:
 Elements of Logistics Systems I
- ccomponents of a logistics system
- order management
- materials management
- customer service
- traffic management function
 Elements of Logistics Systems II
- warehouse and plant location
- distribution centers
- selecting providers of logistics services
 Elements of Logistics Systems III
- inventory management
- logistics systems control
- logistics quality measurement
 Supply Chain International Management
- the concept
- international logistics
- integration and management
- future directions
- enterprise logistics in the information Era
REFERENCES:
–
–
R. Shapiro (1984). "Get Leverage from Logistics". HBR. May-June. Volume 62, Number 3. :119-126
Fuller, J., O'Connor, J., Rawlinson, R. (1994). "Tailored Logistics: The Next Advantage". HBR.
May-June :87-98
–
H. Pohl (1997). "Logistics. State of the Art". Human Systems Management, Volume 16, Issue 3 :153-158
–
S. Fawcett; S. Clinton (1999). "Enhancing logistics to improve the competitiveness of manufacturing
organizations: The Triad Perspective". Transportation Journal. Volume 37 Issue 1: 18-28
–
J. Johnson; D. Wood; D. Wardlow; P. Murphy (1999). Contemporary Logistics. Seventh Edition. Prentice Hall.
Chapter 3. Logistics Interfaces with suppliers and within the firm. :60-96
–
A. Cooke (1999). "Making the Global Connection". Logistics Management and Distribution Report. Volume
38, Issue 6 :47-50
–
R. Poist; C. Scheraga; J. Semeijn (1999). "Assessing the post-1992 European experience: Perspectives of US
and European logistics executives". Transportation Journal. Vol 39 Issue 2 :5-15
–
M. Tracey (1998). "The importance of logistics efficiency to customer service and firma performance". ".
International Journal of Logistics Manaqement. Volume 9, Issue 2 :65-81
D. van der Veeken; W. Rutten (1999). "Logistics service management: Opportunities for differentiation".
International Journal of Logistics Management. Volume 9, Issue 2 :91-98
–
T. Foster (1998). "You can't manage what you can't measure". Logistics Management and Distribution Report.
Volume 37, Issue 5 :63-68, UCC (Uniform Code Council) 201. Shipping Container Standards.
–
M. Menon; M. McGinnis; K. Ackerman (1998). "Selection Criteria for providers of third-party logistics
services: An exploratory study". Journal of Business Logistics, Oak Brook, Volume 19, Issue 1: 121-137
–
J. Mentzer; D. Flint; J. Kent (1999). "Developing a logistics quality scale". Journal of Business Logistics, Oak
Brook; Vol 20, Issue 1 :9-32
–
D. Biederman (2000). "Mastering International Logistics". Traffic World. Volume 263, Issue 1: 22-23
–
N. Greis; J. Kasarda (1997). "Enterprise Logistics in the Information Era. California Management Review.
Volume 39, Number 4, Summer :55-78
MODULE 9
GLOBAL MARKETING
This module takes into consideration that international marketing underwent fundamental
changes over the last two decades. Global, political and economic liberalization trends created
tremendous business opportunities and challenges for international marketers. The opening up of
new markets in Eastern Europe and a tendency toward economic liberalization in the developing
world have spawned new business opportunities. Similarly, the emergence of regional trading
blocs (EU, NAFTA, MERCOSUR) have necessitated reorganization in the production and
marketing strategies of firms. The changes in strategy include serving different markets from one
production source or the shifting of production facilities for greater efficiency. The so called
strategic dilemma of multinational enterprises is the question of global integration vs. local
responsiveness. However it is no longer an either/or dichotomous issue. Forward-looking,
proactive firms have the ability and willingness as well as the necessity to strive to accomplish
both tasks simultaneously (Masaaki Kotabe).
The objective of this module is to explore the challenges of the changes in the global arena on
marketing and on marketing research. At the same time the impact of new technologies, namely
the internet, on marketing methods must be explored and investigated how every business has to
determine what combination of internet tools and traditional marketing methods are appropriate
for which specific purpose.
MAIN FOCUS:
 Introduction
- nature of international and global marketing
- the international marketing concept and the international marketing mix
 Selection of markets
- international marketing research
- use of the internet
- international market segmentation
 International promotion policy
- international advertising
- international direct marketing
- relationship marketing
- international sales promotion
 International branding
- nature of branding
- valuation of brands
- country-of-origin effects
 International pricing
- determinants of selling prices
- transfer pricing
REFERENCES:
-
Masaaki Kotabe, Contemporary Research Trends in International Marketing: The 1990s, in:
Alan M. Rugman,, Thomas L. Brewer (Ed.), The Oxford Handbook of International Business, 2001
David Ford, Understanding Business Markets, 2nd Edition 1997
Raymond Frost, Marketing on the Internet, 1999
Roger Bennett, International Business, 2nd Edition 1999
John D. Daniels, Lee H. Radebaugh, International Business, 9 th Edition 2001
MODULE 10
INTERNATIONAL BUSINESS LAW
Law affects the international business transaction fundamentally. First we have to consider
private law is influencing trade, licensing, or investment. But public law is not of less
importance, as it is regulating international trade, investement restrictions, technology transfer,
and other political controls over international business. It is not possible to cover the law of
every nation. Therefore a comparative and selective approach is chosen.
Taking Anglo-American Law (the system of 54 countries with 2.5 billion of the world's
inhabitants) as its point of departure and reference, this intensive course will examine, from a
practice-oriented perspective, the legal environment of international business in the
English-speaking and Islamic world, while also engaging in analysis of legal problems in Latin
America and the Far-East. The course content is grouped into three broad generic areas:
-
Introduction to international- and comparative law applicable to modern
business
Business organizations in the multinational context
The law of international business transactions
Brief introduction to private international law,
its sources: treaties, international custom general principles of law and jurisprudence
 The subjects of private international law.
 Brief introduction to internet-based legal research for the global manager.
 Comparison of the world's three dominant legal systems:
-
Roman-based Law in the Latin American context,
Anglo-American Common Law, and
Islamic Law.
 The foundations of Common Law, the Common Law systems in 54 countries of
the world and their judicial structures.
 Procedural law in the English-speaking world contrasted with the practice of
Latin America and Europe.
International commercial arbitration
-
an alternative to traditional litigation,
its role in modern business dispute resolution
the arbitration procedure
the role of the World Trade Organization, the World Bank and their
arbitration tribunals.
 Executing foreign arbitral awards in domestic courts.
 Commercial arbitration in the Arab world: Saudi Arabia and North Africa.
The multinational enterprise
 Comparative analysis of business organizations in Common Law nations versus
Roman Law-based nations.
-
sole proprietorships,
joint ventures,
partnerships,
limited liability companies and,
corporations.
 The establishment, operation and regulation of corporations in the
Anglo-American legal systems with special emphasis on agency, securities
regulations, directors' liability, shareholders derivative actions and insider
trading.
 Corporate mergers and hostile acquisitions in the modern business world, with
special attention to defense strategies available to the global manager
The Legal Environment of International Business Transactions
 State responsibility and the doctrine of imputability
 The dichotomy of the national standard versus the international minimum
standard:
-
the case of the calvo doctrine in Latin America.
the Barcelona Traction case of the International Court of Justice.
 Expropriations and Confiscations affecting trans-national business operations.
Defense strategies available to the global manager.
 Disguised expropriations and national investment guaranty programs.
 Corporate foreign investment regulation: the case of Mexico.
 The Element of corruption in the conduct of international business: the reality of
Latin America and the Middle East. OECD and U.S. Anti Corruption Legislation
applicable to transnational business transaction.
Transactions involving the Sale of Goods and Services
 Negligence in the design, production and sale of goods, defenses available to the
global manager and the modern doctrine of :
 Strict liability in the Anglo-American as well as Japanese context. The concept of
„unreasonable danger“. Statutes of limitation under restatement of Torts, Sec.
402A and the differences existing in European supranational law.
 Strict Liability Defenses. Strict liability for failure to warn. Restatement, Sec.
405. The potential for liability in cases of risk in the normal use of non-defective
products.
 Implied guarantees in the sale of goods.
-
warranty of title,
warranty of mercheantability,
warranty of fitness for intended purpose.
 Legal remedies and verdicts in product liability cases in the Anglo-American
environment, with emphasis on class actions and punitive damage verdicts.
The international Sale of Goods
 The United Nations' Convention on Contracts for the International Sale of Goods
(CISG). Opting in or out. Interpretation of the treaty and its provisions. Mixed
sales.
 The interpretation of contracts and their elements ( CISG and UCC compared to
Islamic Shari'a Law principles on prohibited sales, prohibition of interest, loans
and insurance).
 The obligations of buyers and sellers. Using proprietary Internet databases in risk
management.
 The passing of the risk.
 Remedies and excuses for non-performance.
 Textual analysis of contracts for the international sale of goods, patent licensing
agreements and distributorship agreements using samples of actual contracts,
with special emphasis on choice of law- and jurisdiction clauses,
Non-assignability clauses, force majeure, indemnification and insurance clauses.
 Looking into the future: The emerging law of electronic commerce - problems of
jurisdiction, illegality and electronic signatures.
REFERENCES:
-
Richard Schaffer, Bewerley Earle, Filiberto Agusti, International Business Law and its Environment, 4 th
Edition 1999
J.H.H. Weiler (Ed.), The EU, the WTO and the NAFTA - Towards a Common Law of International Trade?
2000
Rainer Gildeggen, Internationale Handelsgeschäfte: Eine Einführung in das Recht des
grenzüberschreitenden Handels, Vahlen, 2000
Ray August, International Business Law, 3rd Edition 2000
Ralph Haughwout Folsom, International Business Transactions: A Reader, West/Wadsworth Publisher
1999
Bernard Sarachek, International Business Law: A Guide for Executives, Darwin Press 1995
Filip de Ly, International Business Law and Lex Mercatoria, Elsevier Sciences Publ. 1992
Jeffren Beatty, Susan Samuelson, Business Law for a New Century, Little Brown and Company 1996
Incoterms 2000 – ICC official rules for the interpretation of trade terms, International Chamber of
Commerce, 2000
Peter Schlechtriem, Commentary on the UN Convention on the International Sale of Goods (CISG), 1998
Frank Emmert (Ed.), European Union Law – Documents, 1999
Frank Emmert (Ed.), European Union Law – Cases, 2000
Wulf Döser, Vertragsgestaltung im internationalen Wirtschaftsrecht, 2001