Rules and Networks: The Legal Culture of Global Business Transactions (Onati International Series in Law and Society)

"International business transactions are heavily influenced by culture,practice and rule. The pursuit of business relationships within nation-states can be subject to differences in the generation of norms and the processing of disputes, but these conflicts are magnified many times over in cross-border transactions where nation-state control and support is weak or absent. This book seeks different explanations of the ways in which business people and their legal advisers try to minimise the effect of these magnified difficulties. At the outset the editors suggest four sources through which the international business community might be considered to have supplemented nation-state conflict prevention and dispute resolution institutions - an international legal order; the development of a private normative order based on common business practices (denominated the lex mercatoria); through the efforts and work product of internationalised law firms, and by means of extensive, thick personal relationships often referred to by their Chinese term guanxi. Since most explanations are dominated by North American and European legal scholarship and practice, a second concern of this book is to open up the discussion to competing explanatory frameworks. Specifically, it develops the notion that global legal convergence may not be the immediate, inevitable result of increased global economic interaction. Rather, less formal mechanisms for achieving normative understanding and predictability in business dealings may also flourish."--Bloomsbury Publishing. 1841132950......Page 1 Half title verso......Page 3 Title page......Page 4 Title verso......Page 5 Series Editor's Foreword......Page 6 Preface......Page 8 Contents......Page 10 List of Contributors......Page 12 Introduction: The Legal Culture of Global Business Transactions......Page 16 Part One. The New Global Environment of Business Transactions......Page 52 1. Sovereignty and Law in a Denationalised World ......Page 54 Statehood in the National Constellation......Page 55 Challenges of and Responses to Denationalisation......Page 60 The New Architecture of Statehood......Page 70 Law Beyond the Nation-State......Page 72 References......Page 80 2. The Institutional Structuring of Business Transactions......Page 88 The Management of Uncertainty in Business Transactions......Page 90 Institutional Features Affecting Inter-Firm Relationships......Page 95 Institutional Features, Business Environments and the Management of Business Transactions......Page 102 The Management of International Business Transactions......Page 108 References......Page 111 Part Two. The Role of Legal Rules: State Law and Unified Law......Page 116 3. Global Law in Our High Speed Economy......Page 118 Lon Fuller - Theorist of Globalisation?......Page 120 High-Speed Dispute Resolution in a High-Speed Economy......Page 126 Conclusions......Page 131 References......Page 133 4. Traditional Private and Commercial Law Rules under the Pressure of Global Transactions: The Role for an International Order......Page 138 "The Legal Approach"......Page 140 Rise of Global Transactions......Page 144 Types of Global Transactions......Page 146 The Changing Role of the Nation-State......Page 150 Internationalisation and Uniformity......Page 153 The Strategies of Private Parties......Page 159 Conclusion......Page 163 References......Page 165 Part Three. The Role of Autonomous Rules: The New Lex Mercatoria and Self-Regulation......Page 172 The Lex Mercatoria Approach to Globalisation......Page 174 Analysis of the Lex Mercatoria Approach to Globalisation......Page 182 Legitimacy of the Lex Mercatoria Approach to Globalisation......Page 193 Assessment and Conclusion......Page 195 References......Page 196 6. Lex Mercatoria - Critical Comments on a Tricky Topic......Page 204 A Field of Study of Arbital Awards......Page 206 Validity and Enforceability of Such Awards is Not a Problem......Page 212 Conclusions......Page 213 References......Page 214 7. Global Markets, New Games, New Rules: The Challenge of International Private Governance......Page 216 Introduction: The Limits of Metaphors in Public Policy......Page 217 The Emergence of Rules and Institutions Among Rational Actors......Page 220 Beyond Game Theory: The Social Foundations of Economic Action......Page 229 Private Governance and the Provision of Public Goods......Page 234 Public Information, Institutions and Social Embeddedness......Page 243 Conclusion......Page 255 References......Page 257 Part Four. The Role of the Legal Profession: Mega-Lawyers and In-house Counsel......Page 262 8. Capital Markets: Those Who Can and Cannot Do the Purest Global Law Markets......Page 264 Part 1: Capital Markets Business......Page 268 Part 2: Multidisciplinary Partnerships......Page 274 Part 3: Bringing it Together......Page 279 References......Page 283 9. The Role of Global Law Firms in Constructing or Obstructing a Transitional Regime of Labour Law......Page 288 The Role of Lawyers in Labour Law......Page 292 Labour Lawyers in the Global Economy: An Empirical Study......Page 294 The Effects of Globalisation on National Labour Law......Page 302 The Effects of Globalisation on Labour Lawyers......Page 304 Conclusion......Page 308 References......Page 309 10. Oil Lawyers and the Globalisation of the Venezuelan Oil Industry......Page 316 The Oil Business in Venezuela......Page 317 Legal Services for the Oil Businesses......Page 321 The Career of Oil Lawyers......Page 324 Conflict Prevention and Apertura......Page 329 Conflict and Litigation......Page 332 Conclusions......Page 334 References......Page 336 Part Five. The Role of Business Networks: Relationism and Guanxi......Page 338 11. Social Logic as Business Logic: Guanxi, Trustworthiness, and the Embeddedness of Chinese Business Practices......Page 340 A Three-Dimensional View of Guanxi......Page 342 The Intermediate Logic of Guanxi......Page 347 Guanxi and Business Transactions......Page 349 The Institutional Context of Interim Networks......Page 352 Conclusion: The Chinese Way of Doing Business in a Global Economy......Page 356 References......Page 357 12. Coasean Foundations of a Unified Theory of Western and Chinese Contractual Practices and Economic Organisations......Page 362 Introduction......Page 363 Coase's Theory of the Firm (1937)......Page 365 Landa's Theory of Contract Law (1976)......Page 366 Landa's (1981) Theory of the Ethnically Homogenous Chinese Middleman Group (EHMG)/Ethnic Trading Groups......Page 369 Theory of EHMG: Links with the "Markets-Hierarchies", "Embeddedness/Social Networks" Research Programmes......Page 372 Implications of a Theory of EHMG for Formulating some (Testable) Hypotheses......Page 374 References......Page 376 13. Understanding Chinese Legal and Business Norms: A Comment on Janet Tai Landa's Chapter......Page 378 Tai Landa's Theory of Contract Law and the Logic of the Ethnically Homogenous Middleman Group (EHMG)......Page 379 Evaluating and Re-Evaluating China's Commercial Tradition and Law......Page 381 Law (+ Social Norms) As "Rules of the Game"......Page 388 Property, Politics and the Prerequisites of "Spontaneous" Norms......Page 394 Conclusion......Page 396 References......Page 397 14. A Brief Note on Guanxi......Page 400 Promises and Problems......Page 401 The Limitations of a Rational-Instrumentalist Analysis of Trust-Based Transaction......Page 402 Guanxi and Chinese Business Behaviour......Page 404 Conclusion: What Guanxi is not about......Page 409 References......Page 411 15. Responding to Comments by John K. M. Ohnesorge and Tai-lok Lui......Page 414 Response to Lui's Comments......Page 416 References......Page 417 16. Settling Business Disputes with China......Page 418 Twenty Years of Legal Progress in China......Page 420 Negotiating Means of Dispute Resolution......Page 425 Actual Dispute Resolution......Page 428 Concluding Thoughts......Page 434 References......Page 435 Index......Page 436 Introduction : The Legal Culture Of Global Business Transactions / Volkmar Gessner, Richard P. Appelbaum, William L. F. Felstiner -- Sovereignty And Law In A Denationalised World / Michael Zürn -- The Institutional Structuring Of Business Transactions / Richard Whitley -- Global Law In Our High Speed Economy / William E. Scheuerman -- Traditional Private And Commercial Law Rules Under The Pressure Of Global Transactions : The Role For An International Order / Dieter Martiny -- Lex Mercatoria (new Law Merchant) : Globalisation And International Self-regulation / Filip De Ly -- Lex Mercatoria - Critical Comments On A Tricky Topic / Felix Dasser -- Global Markets, New Games, New Rules : The Challenge Of International Private Giovernance / Franco Furger -- Capital Markets : Those Who Can And Cannot Do The Purest Global Law Markets / John Flood -- The Role Of Global Law Firms In Constructing Or Obstructing A Transitional Regime Of Labour Law / Harry Arthurs -- Oil Lawyers And The Globalisation Of The Venezuelan Oil Industry / Rogelio Pérez Perdomo -- Social Logic As Business Logic : Guanxi, Trustworthiness, And The Embeddedness Of Chinese Business Practices / Wai-keung Chung And Gary G. Hamilton -- Coasean Foundations Of A Unified Theory Of Western And Chinese Contractual Practices And Economic Organisations / Janet Tai Landa -- Understanding Chinese Legal And Business Norms : A Comment On Janet Tai Landa's Chapter / John K. M. Ohnesorge -- A Brief Note On Guanxi / Tai-lok Lui -- Comment On Ohnesorge And Lui / Janet Tai Landa -- Settling Business Disputes With China / Jerome A. Cohen Edited By Richard P. Appelbaum, William L.f. Felstiner, Volkmar Gessner. The Oñati Internationalinstitute For The Sociology Of Law.--cover Includes Bibliographical References And Index.