To completely understand the meaning and dimensions of international business law, it must be clear in mind as to what is business law, how was it established, what all it covers and other relevant facts.
The word business involves buying and selling of goods and services with the motive of earning money. It is the act which consists of producing, buying and selling of products to gain the profit. Business was introduced for this purpose only, i.e., earning the profit.
Few things should be evident in this regard such as:
Business involves a regular transaction. This means that operations which are recurring in nature will only be calculated for business.
Business must have a profit element in it. Trades done without profit motive will not be counted for business.
Social welfare will also not come under the industry.
The transactions should be legal, i.e., they should have a constitutional statute in the eyes of the law.
Therefore, the law which deals with business is called business law.
What is the importance of this law?
Earlier, the business was done without any standardized rules and regulations. There was always misery and corruption both on the parts of sellers as well as buyers. Most often, the buyer had to compromise with the product. In the absence of a proper law, sellers used to sell damaged products which at times proven hazardous for the consumer. The consumer also was helpless as he could not seek any legal help and thus the sellers exploited the buyers from time to time to earn more and more profit.
Therefore, there arose a need for some rules and regulations to govern the business transactions and to safeguard the rights of the consumers as well as the liabilities and obligations of the sellers. This way, business law came into light. It didn’t happen overnight nor was it a sudden decision but it was a result of various factors over time.
International Business Law
Now coming on the topic, what is international business law!
Every country has its own business law, and this facilitates the consumers of this country to safeguard their rights, but on the same time, it makes difficult for the countries to transact with each other as each country has its law. Therefore, to bring uniformity in the dealings and transactions of business, international business law came into existence. It is nothing but a mandate to govern the dealings and transactions between countries to safeguard the rights and interests of the international sellers and buyers.
So, from all the information above it is pretty clear as to what international business law is and what is its implication.