Chapter

Enabling Global Business Transactions

Volkmar Gessner

in Capitalisms and Capitalism in the Twenty-First Century

Published in print April 2012 | ISBN: 9780199694761
Published online September 2012 | e-ISBN: 9780191741289 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199694761.003.0007
Enabling Global Business Transactions

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Cross-border economic activities are embedded either in formal subordination to particular national legal systems, a commitment established and structured by nation states and in practice voluntarily agreed by participants in a contract, or global business deals are enabled by global institutions. The protection of property rights — a basic condition for every economic activity — remains a domain of the nation state, whereas contract enforcement is offered by highly diverse institutions created by international agreements or non-state actors like trade associations. The number of such legal and private structures governing international trade increases dramatically annually, opening a new field of professional activity for international law firms, arbitrators, and consultants. States try to catch up by enhanced internationalization of courts, administrative structures, and legal education. Firms develop their own governance devices through relational contracts, mergers, and long-term forms of cooperation. These developments require a reconsideration of “institutional support” in institutional economics and “contractual certainty” in classical Weberian sociology of law.

Keywords: international commercial transactions; global law; enabling law; institutions; varieties of capitalism; global legal culture; relational governance; Max Weber on calculability; contractual certainty

Chapter.  8662 words. 

Subjects: Organizational Theory and Behaviour

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