Introduction:

Globalization is impacting how we do business, how we plan the business, and what type of business we engage in, especially when it relates to international business. The continuing process of economic globalization has been accompanied by a comprehensive and ambitious agenda aimed at incorporating developing countries into the global economy. An important aspect of this development has been the prominent role played by international business law as a vehicle for bringing together the complex and seemingly disconnected components of economic globalization. Such a comprehensive globalization continues to spread and deepen the interdependencies linking societies, economies and regions. It is today almost impossible to find any country that is untouched by cross-border flows of commerce, investment, people, ideas and images. Business law is practiced at the heart of globalizations changes because it facilitates and creates the ways in which globalized business transactions and operations are structured and executed and at the same time helps to shape the environment in which these transactions occur. The prominent role played by law is manifested in the comprehensive codification of international trade, the proliferation of international investment treaties, the enhanced role of international

adjudication and the dominant role played by international financial institutions, such as the World Bank and the IMF, in national economic policymaking and governance. The surge of international economic law and the consequent legalization and judicialisation of international economic relations suggest that the weaker members system have fared well during the past three decades of economic globalization. After all, as a corollary to assumptions about the rule of law, it would be reasonable to expect that the development and application of international legal rules would protect the rights and interests of weaker states. This expectation is reinforced by two parallel processes that have taken place in recent years: the widespread democratization experienced by most states in the developing world and the new prominence achieved by the international human rights movement.

Yet, despite these seemingly good conditions, developing countries, as a group, have not fared as well as expected. Unlike economically powerful countries, developing countries face enormous and often irresistible pressures to adhere to rules of international economic law, some of which significantly restrict their capacity to formulate policies suitable to their needs. The lack of effective participation of most developing countries in the elaboration of many international economic rules and the often asymmetric content of these new rules suggest that the legalization of international economic relations may not have brought about unqualified benefits to developing countries. In this essay, we will examine how is globalization transforming business law and the practice of business law? How globalization affects businesses and how they interact? The interplay of globalization, business and business law has also catalyzed the extensive development of international treaties, model laws and codes of best practices or statements of principles as well as national laws that directly regulate or seek to influence and shape international business and how it is conducted. But perhaps globalizations deepest impact on business law is to expand the concept of what constitutes business law and the practice of business law itself.

Historical Perspective:
The modern era of international business can be said to begin with the end of World War II in 1945. At that time it again became possible for international business to grow and prosper. Lawyers at that time were trained almost exclusively in the domestic law of the jurisdictions in which they practiced; however, major law firms soon pioneered international business law practice, and some even took the step, considered daring at the time, of establishing overseas offices. How different is the world today from the world of the 1950s and 1960s. In the lifetimes of many who practice law, profound changes have occurred. Although change has occurred in virtually every field of law, perhaps in the field of international business law have the changes been the most profound and far-reaching. Globalization has wreaked profound changes in the way we practice international business law, and that these changes have largely

been for the better and will continue apace in the future, barring war or other major calamity.

Terminologies:
What do we mean by international business law?
In the present context, this term rather broadly refers to everything people do to facilitate and accomplish international business transactions. Thus, taking a transactional view as the key, international business can be said to encompass the following: (1) export and import transactions of goods and services, with associated transactions involving finance, shipping, and insurance; (2) Contracts and transactions with foreign agents and distributors; (3) Licensing and franchising operations; (4) Forming international joint ventures; (5) Establishing foreign branch offices and subsidiary companies; (6) Handling mergers and acquisitions; (7) The myriad details associated with multinational operations, once a transnational business is established. In considering these types of transactions, it is apparent that there are four main streams of international business activity: (1) trade in products (over $11 trillion annually); (2) trade in services (over $2.5 trillion annually); (3) trade in technology (about $160 billion annually); (4) international investment (over $1 trillion annually for foreign direct investment alone). A fifth area, facilitating the movement of international personnel, is also very important.

How do we define 'Globalization'?

Globalization can be defined as the relatively free movement all over the globe of products, services, money, technology and information as well as the free movement of people than ever before. Although the world has in the past experienced periods of relative openness and international activity, no past era was global in the sense we experience this phenomenon today. For the first time in human history, the entire world is tied together, and we experience the world in some ways as a small village. For the first time in human history, for better or for worse, all parts of the world are now part of a single, global economy. Martin and Sunley (1997) identified Globalization as a notion of economic activity that enables a free flow of capital, trade and information not constrained by national boundaries. Globalization is a shift towards integrated and interdependent world economy. Due to this interdependence the world is becoming a strong Global Village. The concept global village was first introduced by Marshall McLuhan (1962), one of the first thinkers of globalization. Now firms could operate across countries in order to get access to the cheaper factors of production as well as to achieve the economies of scale.

Changes brought by Globalization:

Although as with all new developments there is a dark side to globalization that we must manage, on the whole, this phenomenon, as well as international business, has benefited mankind. For example, since 1950, 13 major economies have grown an average of 7 percent for at least 25 years, including Botswana, Brazil, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Malta, Singapore, Taiwan, Oman, and Thailand. All of these cases have in common a connection to the global economy.

Changes globalization has brought to the international business law

1. New Sources of International Business Law
A new factor in the past twenty years that has revolutionized the practice of international business law is the development of new sources of international business law so that this field of law is becoming truly international in character. These new sources are remarkably similar to the recognized sources of public international law - treaty law, custom and decisions of international tribunals. International business law sources include (1) multilateral treaties; (2) bilateral treaties; (3) model laws; (4) model contract terms; and (5) codifications of customs and usages by non-governmental organizations. Some of the forums that are the most active in this new lawmaking include UNCITRAL, UNIDROIT, and the International Chamber of Commerce. An outstanding example of this is the United Nations Convention on Contracts for the International Sale of Goods (1980). This treaty, which has been accepted by over 80 states, governs the formation of international contracts, the respective duties of the buyer and seller, and the remedies available to each party in the event of a breach of contract. Second example is the growth of international custom as law separate from the law of any state by way of the work of the International Chamber of Commerce (ICC) in promulgating international trade terms and standards based on the customs of merchants. A third example of this expanding international business law is the network of bilateral investment treaties (known as BITS) that now govern and facilitate international investment in many countries, both in the developed and developing world.

2. New Alternative Dispute Settlement Systems

The new freedom to choose the applicable forum for the resolution of international business law disputes has revolutionized the practice of law by largely taking international business litigation out of the courtroom in favor of using alternative methods of dispute settlement. Foremost among these

alternative methods is international business arbitration, which is greatly facilitated by the existence of numerous forums, such as the ICC, that provide assistance and rules for the conduct of international arbitrations. International legal support for arbitration may be found in the provisions of the Convention on the Enforcement and Recognition of Arbitration Awards (the New York Convention1958), which provides the basis for upholding an agreement to arbitrate in over 120 countries that are States-parties. The extensive use of arbitration also serves to create an expanding international jurisprudence of arbitration decisions in all fields of international business law.

3. New Ways to Enforce Foreign Judgments

The Private International Law method of enforcing foreign judgments (by leaving the decision to recognize and enforce up to the domestic law of each individual state) has given way in recent years to a system of international law enforcement of judgments under the standards of treaty law. First, under the aforementioned New York Convention, arbitration awards are automatically enforced in over 120 States-parties to the Convention with only limited exceptions, such as for fraud, corruption or misconduct on the part of the arbitrators. Second, under the provisions of the Convention on Choice of Court Agreements (2005, not yet in force), a judgment resulting from jurisdiction exercised in accordance with an exclusive choice of court agreement must (with very limited exceptions) be recognized and enforced in the courts of other states-parties. This system will assure that the overwhelming majority of judgments in international business law cases are automatically enforced under international law principles and are not subject to the vagaries of local law.

4. Comprehensive Trade Agreements

Another important factor in revolutionizing international business law is the tremendous growth in the public international law rules that govern world trade. The creation of the World Trade Organization in 1994 was a watershed event for international business. Now international organization has the responsibility for supervising and administering very detailed and

comprehensive rules for all four streams of international trade, products,

services, technology and investment. In addition to the trade agreements themselves, the 153-member WTO administers a compulsory system of dispute settlement that has resulted in an extensive jurisprudence on trade and international business law. Although international business entities cannot themselves litigate before the WTO, issues of concern can readily be negotiated and litigated by the members on their behalf. In addition to the global rules on trade administered by the WTO, regional and other preferential trade agreements have proliferated all over the world, so that now over 100 comprehensive bilateral and multilateral free trade agreements, customs union agreements, and trade cooperation agreements govern business and trade relations between partner states. Outstanding examples in this regard include, of course the European Union (which is a political, economic and monetary union as well), and the North American Free Trade Agreement. The United States has free trade and trade promotion agreements with some 20 nations, including a landmark Free Trade Agreement signed in 2007 with the Republic of Korea. Other nations who are members of the WTO also have extensive bilateral, regional and preferential trade agreements as well. This detailed and comprehensive network of international trade rules benefits international business by giving business entities an assured legal framework in which to conduct their business plans and operations.

5. New Systems of International Corporate Social Responsibility

International business today still operates within a system on state-based domestic laws that govern social matters, such as relations with workers, consumer affairs, environmental protection and human health and safety. There is no extensive international law on these matters, although international business standards have been extensively studied by the United Nations Economic and Social Council and other international organizations.4 Despite the fact that local laws control most social matters, international business entities today must be acutely aware of their social responsibilities, if for no other reason that adverse publicity can be disastrous for companies involved in international business. One need only think of recent examples in

this regard, such as the accident at the Union Carbide plant in Bhopal, India in 1984. In the United States, international companies may be sued for violations of international law involving social responsibilities under the Alien Tort Statute,5 with the result that in several cases companies have had to settle such cases for substantial sums. To avoid such unpleasant events as well as to fulfill duties to societies, international business would be well-advised to pay heed to the new systems of corporate social responsibility that have been especially designed for international business operations. In 2000 the Organization for International Economic and Development (OECD) published its comprehensive voluntary Guidelines for Multinational Enterprises.7 These guidelines cover

recommended company duties and procedures with respect to such matters as public disclosure of information, employee and worker relation, protection of the environment, bribery, and compliance with competition laws. Many international companies have joined and participate actively in voluntary systems of corporate social responsibility, such as the United Nations Global Compact Program, which contains social standards for companies who then file an annual report of compliance. Such social responsibility systems are gaining in popularity among companies, and the international business lawyer must be versed in such programs in order to assist in their implementation by business clients.

Emphasis on Human Content Upgrade:

The rapidly changing global environment in which international business takes place has created a demand for professionals who are capable of functioning as problem avoiders rather than dispute solvers; who understand how to use their skills and knowledge in a multidisciplinary and cross-cultural team; and who have the sense of professional responsibility to make sure that their clients enter into socially and environmentally sustainable transactions. In order to meet this demand, schools need to change the ways in which they ate professionals in this domain. The requisite change can be resource intensive and may have challenges in the developing world to implement.

However, with creativity and cooperation between responsible agencies, we can overcome these limitations.

Conclusions:
Perhaps no area of law has changed as much in the last 50 years as the practice of international business law. Not only has a whole new set of rules and standards been created, but a fundamental reorientation of the practice has occurred from domestic law to international law. These reforms continue apace, and the revolution is not yet complete. Such reform has greatly benefited both business and the international society in which we operate. Globalization has and will continue to affect many domains of the international business legislation and the environment and we, especially the developing world must be geared up to face the impacts.

References:
1. International Economic Law, Globalization and Developing Countries, Edited by Julio Faundez, University of Warwick, UK, Celine Tan, University of Birmingham, UK 2. A Basic guide to International Business Law, J. Keiser, H. Wevers 3. http://www.lawyersnjurists.com/resource/coursematerials/management/ globalization - international-business/ 4. The Changing International Business Context and the Challenge It Poses for the Education of International Business Lawyers, by Daniel D. Bradlow 5. http://en.wikipdia.org