 US laws  Domestic policy  Foreign policy  Foreign laws  Legal systems  Risks  Regional laws and structures (Economic Integration)  International laws and structures

 General Domestic Laws that Indirectly Affect International Matters (Domestic Policy)  Domestic Laws that Directly Affect International Matters (Foreign Policy)

 Embargos & Sanctions

 Embargo: Broad prohibition of trade as part of domestic law  Sanction: Similar, but usually focused on specific type of good or activity  Political reasons  Human rights  Nuclear controls  Antiterrorism  Unilateral/Multilateral

 Economic cost ($20 billion?)  Effective?  Dangerous?

 Embargos & Sanctions  Export Controls

 Prevent military use by enemies  Antiterrorism  Crime control  Protect short-supply products (EAR)EAR  Part of embargo or sanctions

 US Department of Commerce, Bureau of Industry & Security  “Soviet Union Time”

Website 1. What is the product? (EAR)EAR 2. Where is it going? (EAR)EAR 3. Who will receive it? 4. What is its use?

 Embargos & Sanctions  Export Controls  Boycotts

 Embargos & Sanctions  Export Controls  Boycotts  Antibribery Laws

 Prohibits payment of bribes to foreign government officials  “Grease” payments are OK  Requires bookkeeping measures  OECD: Treaty system to criminalize bribery  World Bank: Helping to enforce

 China prison labor  Malaysian sweatshops  Japan and Norway and whaling  Brazilian rain forest

 Tariffs: Taxes on imports  Quotas: Numerical restriction on imports  Nontariff barriers: Noneconomic barriers  Voluntary restraint agreements

PROS  Protect domestic business  Save jobs CONS  Consumers bear the brunt – prices  Downstream effects  False sense of security  Escalating barriers  Ineffective – can be circumvented

 Export Promotions  US Export Assistance Center  Business Oregon  SBITO  Import Promotions 手を結んで輸入しよう

 Definition: Investment by one country in another  More and more in US (instead of OUT of US)

PROS  Job creation  Technology transfer  Increased competition? CONS  Increased competition?  Negative cultural impact?  Overcrowding and lower quality of life?

 Mainly, government function  Prospect “mining”  Hand-holding  Financial incentives (tax breaks)