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International Trade Law

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University of Michigan Law School

Michigan Journal of International Law

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Full-Text Articles in Law

Legal Institutions And International Trade Flows, Daniel Berkowitz, Johannes Moenius, Katharina Pistor Jan 2004

Legal Institutions And International Trade Flows, Daniel Berkowitz, Johannes Moenius, Katharina Pistor

Michigan Journal of International Law

Why do domestic legal institutions matter, and why can trading parties-in particular exporters of complex goods-not easily opt-out of their domestic legal institutions? The authors argue that domestic institutions remain important even in a globalized world, because they are the final option for enforcing a claim against a party in the event of a breach of contract. International contracts take place in the shadow of the parties' home institutions. Unless parties can negotiate a settlement, or the losing party voluntarily complies with a foreign court or arbitration ruling, the winning party must seek enforcement against the assets of the losing …


Inordinate Chill: Bits, Non-Nafta Mits, And Host-State Regulatory Freedom- An Indonesian Case Study, Stuart G. Gross Jan 2003

Inordinate Chill: Bits, Non-Nafta Mits, And Host-State Regulatory Freedom- An Indonesian Case Study, Stuart G. Gross

Michigan Journal of International Law

A number of structural factors, which are beyond the immediate scope of this Note, may influence less wealthy countries to cave in to investor threats of arbitration, as Indonesia appears to have done here. However, their hesitancy to fight may also be based, in part, on an inadequate understanding of the applicable law, which allows investors to inordinately influence host-State decisions through threats of arbitration that have little or no chance of success. In regard to the mining companies' threat, this at least appears to be the case. As this Note will demonstrate, the GOI could have likely beaten the …