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RIBR 605: International Business: Understanding and Managing Risks Report a Broken Link

Setting up projects or investing in foreign countries without realizing the potential risks of such activities is commonplace. This course is designed to provide an understanding of these foreign aspects in order to support decisions that both understand and minimize the risk of doing business in various global contexts.

Students will explore international practices through a series of topics. Content covered includes understanding the legal risks of foreign investment, minimizing the risks by investing in countries which have Bilateral Investment Treaties with the home country, political risk insurance and using international arbitration or mediation to settle disputes which may result in awards which are enforceable against the assets of the foreign government.

Required Readings

Week 1

Reading 1: Gaughan, P. H., & Javalgi, R. (Raj) G. (2018). A framework for analyzing international business and legal ethical standards. Business Horizons, 61(6), 813–822. https://0-www-sciencedirect-com.aupac.lib.athabascau.ca/science/article/pii/S000768131830106X
Reading 2: Steele Compliance Solutions & Spark Compliance Consulting (Producers). (2019, March 5). Benchmark your compliance reputation [Webinar].
Reading 3: Spark Compliance Consulting. (n.d.). Benchmarking your compliance reputation: How does your program look to the outside world? [White paper]. Steele Global. https://steeleglobal.com/wp-content/uploads/2019/03/Spark-Compliance-Consulting-Spark-Score-Results-and-Benchmarking-Your-Compliance-Reputation-White-Paper.pdf
Reading 4: Franklin, A. (2017, June 5). Rule of law: foreign investment and development. Retrieved from SSRN: https://ssrn.com/abstract=2981399
Reading 5: Bekefi, T., Epstein, M. J. (2006). Integrating social and political risk into management decision-making. The Society of Management Accountants of Canada and The American Institute of Certified Public Accountants. https://daedalusadvising.com/Integrating_%20Social_Political_Risk.pdf
Reading 6: Franklin, A. (2018, April 12). International investment law concepts for foreign investors: Part 1 Basics of international law.  SSRN. https://ssrn.com/abstract=3161820

Week 2

Reading 7: Deming, S. H. (2014). Canada's Corruption of Foreign Public Officials Act and secret commissions offense. American University International Law Review, 29(2), 369–398.
Reading 8: Franklin, A. (2016, April 13). Foreign corruption: Differentiating illegal acts from legal acts. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2759972
Reading 9: Franklin, A. (2018, April 12). International investment law concepts for foreign investors: Part 2 International law and treaties – A primer for international investors. SSRN. https://ssrn.com/abstract=3161845
Reading 10: Steele Global. (2018, April 20). Anti-corruption in Latin America: The New Landscape. https://steeleglobal.com/wp-content/uploads/2018/04/Anti-Corruption-in-Latin-America-The-New-Landscape.pdf
Reading 11: Athabasca University. (2016, June). Canada’s corporate social responsibility approach with Alexandra Lamont, Deputy Director of Global Affairs Canada [Audio file]. https://youtu.be/HGxu6q0Iq1E
Reading 12: Williams, J. (2018, January 5). I was a lobbyist for more than 6 years. I quit. My conscience couldn’t take it anymore. Vox. https://www.vox.com/platform/amp/first-person/2017/6/29/15886936/political-lobbying-lobbyist-big-money-politics

Week 3

Reading 13: Franklin, A. (2018, April 12). International investment law for foreign investors: Part 3 Customary international law a primer for international investors. SSRN. https://ssrn.com/abstract=3161826
Reading 14: OECD. (2004). “Indirect expropriation” and the “right to regulate” in international investment law [OECD Working Papers on International Investment, 2004/04]. Paris: OECD Publishing. https://www.oecd.org/daf/inv/investment-policy/WP-2004_4.pdf
Reading 15: Franklin, A. (2017, March 31). Customary international law, treaty law, BITS and international investment: Why understanding these issues is important to foreign investors. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2943552
Reading 16: United Nations. (2012). Expropriation: A sequel (UNCTAD series on issues in international investment agreements II). http://unctad.org/en/Docs/unctaddiaeia2011d7_en.pdf
Reading 17: The Economist Intelligence Unit Limited. (2019). How to navigate corporate risk. https://pages.eiu.com/rs/753-RIQ-438/images/How-to-navigate-corporate-risk.pdf

Week 4

Reading 18: Alvarez, J. E. (2014). An Introduction to the evolving international investment regime – Part I: Introduction [Video 26 minutes]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Alvarez_IEL.html
Reading 19: Franklin, A. (2018, April 22). Legitimate expectations - Lessons from recent energy arbitration cases on renewable energy relationship of fair and equitable treatment standard to indirect expropriation. SSRN. https://ssrn.com/abstract=3167034
Reading 20: Franklin, A. (2017, June 29). Rule of law as it relates to international investment agreements (IIAs). SSRN. https://ssrn.com/abstract=2995723
Reading 21: Franklin, A. (2019, May 15). International investment agreements: “Inside and outside agreements". SSRN. http://ssrn.com/abstract=3388442

Week 5

Reading 22: Franklin, A. (2018, April 17). Why understanding the world of investor-state arbitration and keeping abreast of recent cases on ISDS is important for international investors. SSRN. https://ssrn.com/abstract=3164432
Reading 23: Thomson, C. R., & Finn, A. K. (2005). Managing an international arbitration. Dispute Resolution Journal, 60(2), 74-81. http://0-search.ebscohost.com.aupac.lib.athabascau.ca/login.aspx?direct=true&db=bth&AN=17594757&site=eds-live
Reading 24: Alvarez, J. E. (Speaker). (2014). An introduction to the evolving international investment regime  –  Part II: Comparing dispute settlement mechanisms [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Alvarez_IEL.html
Reading 25: Aston, P. (2014, September). The importance of the link between mediation and arbitration. International Arbitration Quarterly Bulletin, 4-6. http://www.lexology.com/library/detail.aspx?g=2ff2fb49-0819-45b1-b34d-d6119ecf666b
Reading 26: United Nations. (2016, June). Investor-state dispute settlement: Review of developments in 2015  (UNCTAD International Investment Agreements [IIA] Issues Note No. 2).  http://unctad.org/en/PublicationsLibrary/webdiaepcb2016d4_en.pdf
Reading 27: United Nations. (2018, June). Investor-state dispute settlement: Review of developments in 2017 [IIA Issues Note 2]. https://unctad.org/en/PublicationsLibrary/diaepcbinf2018d2_en.pdf
Reading 28: Kenton, M., & Hirst, P. (2015, July 30). Worldwide: Advantages of international commercial arbitration. Mondaq. https://www.mondaq.com/uk/international-trade-investment/416416/advantages-of-international-commercial-arbitration?login=true

Week 6

Reading 29: United Nations Human Rights Office of the High Commissioner. (2011). Guiding principles on business and human rights: Implementing the United Nations ‘protect, respect and remedy’ framework. http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
Reading 30: Bader, C. (2014, December 12). TED talk: The evolution of a corporate idealist [Video]. https://youtu.be/jAh7YJFxgLg
Reading 31: Global Affairs Canada. (2019). Canada’s ombudsperson for responsible enterprise. https://core-ombuds.canada.ca/core_ombuds-ocre_ombuds/mandate-mandat.aspx?lang=
Reading 32: Global Affairs Canada. (2019). Responsible business conduct abroad – Questions and answers. https://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/other-autre/faq.aspx?lang=eng

Note to students: Please review Reading 11 (audio recording) from Week 2.
Reading 33: Bauer, J. (2014, December 17). The problem with corporate social responsibility. https://www.opendemocracy.net/joanne-bauer/problem-with-corporate-social-responsibility.
Reading 34: Fox, S., & Sutton, T. (2015, May). Ground rules: Cultivating investments through free, prior, and informed consent. https://veracityworldwide.com/wp-content/uploads/2021/03/Ground-Rules-Cultivating-Investments-Through-Free-Prior-and-Informed-Consent.pdf
Reading 35: Franklin, A. (2018, April). To bribe or not to bribe: human rights issues that should factor into decision making process. Jindal Global Law Review. https://0-link-springer-com.aupac.lib.athabascau.ca/article/10.1007/s41020-018-0056-4
Reading 36: Franklin, A. (2018, April 19). Problems that companies have faced regarding corruption and human rights issues: Why there is little information on how they were dealt with. SSRN. https://ssrn.com/abstract=3165822
Reading 37: Athabasca University Faculty of Business. (2017, July 27). Business and human rights webinar for RIBL-687: International Business - Understanding and Managing Legal Risk [Audio file]. https://youtu.be/Y8EUWsjrjPY
Reading 38: Athabasca University Faculty of Business. (2018, April 20). Canadian businesses & human rights issues webinar for RIBL-687: International Business - Understanding and Managing Legal Risk [Audio file]. https://youtu.be/Q7_JvdnVAL8
Reading 39: Franklin, A. (2018, April 30). Human rights and business: Best practices and potential approaches. SSRN. https://ssrn.com/abstract=3170789
Reading 40: KPMG. (2016, December 16). Addressing human rights in business: Executive perspectives. https://home.kpmg/content/dam/kpmg/xx/pdf/2016/11/addressing-human-rights-in-business.pdf

Week 7

Reading 41: Franklin, A. (2019, May 17). Sustainable investment and its relationship to political risk reduction. SSRN. http://ssrn.com/abstract=3389917
Reading 42: Wagner, D. (2002). Political risk insurance in Asia: Who purchases it, where, and why. IRMI. http://www.irmi.com/expert/articles/2002/wagner07.aspx
Reading 43: Roberts, I., & Kilner, V. (2014, June 2). Protection against sovereign risk: Political risk insurance vs bilateral investment treaties. https://www.asiainsurancereview.com/Magazine/ReadMagazineArticle?aid=35131
Reading 44: Gordon, K. (2008). Investment guarantees and political risk insurance: Institutions, incentives and development. In OECD Investment Policy Perspectives (pp. 91–122). OECD. https://www.oecd.org/finance/insurance/44230805.pdf
Reading 45: On Common Ground Consultants Inc. & Robert Boutilier and Associates. (2014). What is the social license? http://socialicense.com/definition.html
Reading 46: Pabon-Agudelo, C. (2017, June 5). Use of economics in international arbitrations. Kluwer Arbitration. http://arbitrationblog.kluwerarbitration.com/2017/06/05/use-economics-international-arbitrations/
Reading 47: Franklin, A. (2018, April 21). Political risk insurance – A primer for foreign investors. SSRN. https://ssrn.com/abstract=3166703
Reading 48: Franklin, A. (2019, May 17). Political risks inherent in foreign investment regarding tariffs: A recent example from Cambodia. SSRN. https://ssrn.com/abstract=3390021
Reading 49: Franklin, A. (2019, May 18). Human rights and indivisibility: The dilemma for business. SSRN. https://ssrn.com/abstract=3390510  

Week 8

There are no readings this week.

Week 9

Reading 50: Franklin, A. (2018, July 24). Business and human rights: The view from here, there, and everywhere. SSRN. https://ssrn.com/abstract=3393234  
Reading 51: Franklin, A. (2016, March). Effective programmes to combat corruption vs programmes intended primarily to satisfy SEC, DOJ or SFO. https://www.oecd.org/cleangovbiz/Integrity-Forum-16-Alan-S-Franklin.pdf
Reading 52: Franklin, A. (2018, May 3). Human rights and business: Best practices and potential approaches. SSRN. https://ssrn.com/abstract=3170789
Reading 53: Franklin, A. (2018, May 3). Problems that companies have faced regarding corruption and human rights issues: why there is little information on how they were dealt with. SSRN. https://ssrn.com/abstract=3165822
Reading 54: Pike, S. (2018, September 28). Canada: Québec securities regulator provides guidance on modern slavery disclosure requirements. Mondaq. http://www.mondaq.com/canada/x/740432/Securities/Qubec+Securities+Regulator+Provides+Guidance+On+Modern+Slavery+Disclosure+Requirements
Reading 55: Department of Justice. (2020, June). Evaluation of corporate compliance programs [Criminal Division Guidance Document, Updated June 2020]. https://fcpablog.com/wp-content/uploads/2020/06/evaluation-of-corporate-compliance-programs-june-2020-revision.pdf
Reading 56: Franklin, A. (2017, June 17). Business reasons for developing a robust anti-corruption program. SSRN. https://ssrn.com/abstract=2988322

Week 10

Reading 57: Nelivigi, N., & McNallen, B. (2008, March 4). India: International investment gateways to India. Mondaq. http://www.mondaq.com/india/x/57758/offshore+financial+centres/International+Investment+Gateways+To+India
Reading 58: Ropes & Gray. (2014, July 21). Ropes & Gray private investment fund update: July 2014 – European Commission decision implicates the parental liability of private equity funds. https://www.ropesgray.com/en/newsroom/alerts/2014/July/Ropes-Gray-Private-Investment-Fund-Update-July-2014
Reading 59: Business & Human Rights Resource Centre. (n. d.). Bangladesh: Lidl supplier, BEO Apparel, accused of intimidating, beating & firing union members who complained about health & safety. http://business-humanrights.org/en/bangladesh-lidl-supplier-beo-apparel-accused-of-intimidating-beating-firing-union-members-who-complained-about-health-safety
Reading 60: Nelivigi, N., Olier, J., Ray, A., & Sabharwal, D. (2014, November 17). Navigating India: Lessons for foreign investors. https://www.jdsupra.com/legalnews/navigating-india-lessons-for-foreign-in-21006/
Reading 61: Knottnerus, R., & Van Os, R. (2012, January 12). The Netherlands: A gateway to ‘treaty shopping’ for investment protection. Investment Treaty News. https://www.iisd.org/itn/2012/01/12/the-netherlands-treaty-shopping/
Reading 62: Conyers Dill & Pearman. (n. d.). Mauritius: An international finance centre.
Reading 63: Shearman & Sterling. (2017, January). Recent trends and patterns in the enforcement of Foreign Corrupt Practices Act (FCPA). FCPA Digest. http://www.shearman.com/en/newsinsights/publications/2017/01/~/media/484F7D387B4145BBB0181D2C10561F05.ashx
Reading 64: Pletcher, F., Williams, R., & Glass, R. (2017, February 23). British Columbia Court of Appeal rules on corporate veil case: Garcia v. Tahoe Resources Inc. http://blg.com/en/News-And-Publications/Publication_4839#
Reading 65: Bildfell, C. (2017). P3 infrastructure projects: A recipe for corruption, or an antidote? http://journals.sagepub.com/eprint/WKhru4TaUUqhKQ3g2GCq/full
Reading 66: Franklin, A. (2016, April 13). Public private partnerships: Legal risks that need to be considered. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2943179
Reading 67: Franklin, A. (2018, April 12). Treaty shopping and denial of benefits clauses - What investors should know. SSRN. https://ssrn.com/abstract=3161829

Supplementary Readings

Week 1 Supp. Rdgs.

Davis, R., & Franks, D. M. (2014). Costs of company-community conflict in the extractive sector. Corporate Social Responsibility Initiative Report No. 66 (p. 27). Cambridge, MA: Harvard Kennedy School. https://www.hks.harvard.edu/sites/default/files/centers/mrcbg/programs/cri/files/Costs%20of%20Conflict_Davis%20%20Franks.pdf
Franklin, A. (2017, April 12). So you want to be a compliance or risk assessment officer? SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2943218
Koh, H. H. (2015). Legal theory: From international to transnational law [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Koh_IL.html

Week 2 Supp. Rdgs.

Alvarez, J. E. (Speaker). (2014). Foreign investment: An introduction to the evolving international investment regime, Parts I-III [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Alvarez_IEL.html
Gürkaynak, G., Kama, O., & Ergün, B. (2015, January 21). Turkey: Mitigating anti-corruption risks in emerging markets. Mondaq. http://www.mondaq.com/article.asp?articleid=368006&email_access=on
Korenchuk, K., Witten, S., Luk, A., Kelly, C., & Soto, P. (2015). Anti-corruption compliance in emerging markets: A resource guide – Chapter 1, Compliance challenges in emerging markets. Arnold & Porter. http://www.apks.com/~/media/files/perspectives/publications/2015/11/anticorruption_resource_guide_web-chapter1.pdf
Paulsson, J. (Speaker). (2014). Foreign investment: A state’s power to make meaningful promises to foreigners [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Paulsson_IEL.html
Transparency International. (2015, November 24). U4 expert answer – How to reduce levels of corruption at country level: Lessons learned. https://www.transparency.org/files/content/corruptionqas/How_to_reduce_levels_of_corruption_at_country_level_Lessons_learned_2015.pdf
Franklin, A. (2017, April 12). Corruption and contracts with states or state owned enterprises: Effects on enforcement of the contract in arbitration decisions. SSRN. https://ssrn.com/abstract=3162467

Week 3 Supp. Rdgs

Leader, S. (2006). Human rights, risks, and new strategies for global investment. Journal of International Economic Law, 9(3), 657-705. doi:10.1093/jiel/jgl015
Onuma, Y. (Speaker). (2014). International law: Legal theory [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Onuma_IL.html
Steele Global. (2017). The rising global tide of ABAC enforcement: Is your compliance program ready for a multipolar world? https://steeleglobal.com/wp-content/uploads/2017/05/The-Rising-Global-Tide-of-ABAC-Enforcement.pdf

Week 4 Supp. Rdgs.

Mbengue, M. M. (Speaker). (2014). International economic law: World Trade Organization (WTO): The principle of non-discrimination in international trade law (GATT perspective) [Video]. United Nations Audiovisual Library of International Law Lecture Series. http://legal.un.org/avl/ls/Mbengue_IEL.html
Reisman, W. M., & Sloane, R. D. (2004). Indirect expropriation and its valuation in the BIT generation. Yale Faculty Scholarship Series Paper 1002. http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=2043&context=fss_papers
Salacuse, J. W., & Sullivan, N. P. (2005). Do BITs really work? An evaluation of bilateral investment treaties and their grand bargain. Harvard International Law Journal, 46(1), 67–130. http://0-search.ebscohost.com.aupac.lib.athabascau.ca/login.aspx?direct=true&db=bth&AN=16763407&site=eds-live

Week 5 Supp. Rdgs.

Cardosi, J. M. (2013). Precluding the treasure hunt: How the World Bank Group can help investors circumnavigate sovereign immunity obstacles to ICSID award execution. Pepperdine Law Review, 41(1), 117-156. http://digitalcommons.pepperdine.edu/cgi/viewcontent.cgi?article=2329&context=plr
Hafner-Burton, E., Puig, S., & Victor, D. (2016, January). Against international settlement? Secrecy, adjudication and the transformation of international law (ILAR Working Paper #26). University of California San Diego, School of Global Policy & Strategy – Research, Laboratory on International Law and Regulation (ILAR). http://pages.ucsd.edu/~ehafner/pdfs/ILAR_Working_Paper_26.pdf
Lavranos, N. (2015, June 8). Countering anti-ISDS propaganda with facts: An uphill battle. http://kluwerarbitrationblog.com/blog/2015/06/08/countering-anti-isds-propaganda-with-facts-an-uphill-battle/
MIGA. (2014). World investment and political risk 2013. Washington: The World Bank. https://www.miga.org/documents/WIPR13.pdf
Samuel, M. (2017, February 21). Confidentiality in international commercial arbitration: Bedrock or window-dressing? http://kluwerarbitrationblog.com/2017/02/21/confidentiality-international-commercial-arbitration-bedrock-window-dressing/
Stimakovits (Schoenherr), M. (2017, April 17). Rome wasn’t built in a day: Progress report on the creation of a UNCITRAL convention on enforcement of conciliated settlement agreements. http://kluwerarbitrationblog.com/2017/04/17/rome-wasnt-built-in-a-day-progress-report-on-the-creation-of-a-uncitral-convention-on-enforcement-of-conciliated-settlement-agreements/

Week 6 Supp. Rdgs.

Ramasastry, A. (2015). Corporate social responsibility versus business and human rights: Bridging the gap between responsibility and accountability. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705675
Reisman, W. M. (Speaker). (2014). International economic law: foreign investment, economic development and national sovereignty [Video]. Retrieved from the United Nations Audiovisual Library of International Law Lecture Series: http://legal.un.org/avl/ls/Reisman_IEL.html

See Davis and Franks (2014) reading from Week 1 Supplementary Readings and Alvarez (2014) video from Week 2 Supplementary Readings

Week 7 Supp. Rdgs.

Willets, P. (2006). What is a non-governmental organization? http://www.staff.city.ac.uk/p.willetts/CS-NTWKS/NGO-ART.HTM

Week 8 Supp. Rdgs.

There are no supplementary readings this week.

Week 9 Supp. Rdgs.

There are no supplementary readings this week.

Week 10 Supp. Rdgs.

European Coalition for Corporate Justice. (2017, February 21). France adopts corporate duty of vigilance law: a first historic step towards better human rights and environmental protection. https://corporatejustice.org/news/a-historic-first-step-france-adopts-corporate-duty-of-vigilance-law/
Maldonado, M. (2014, July 8). Mining for the truth in Guatemala. Maclean’s (Digital Edition). http://www.macleans.ca/news/world/mining-for-the-truth-in-guatemala/
Neville, S. (2014, December 1). Starbucks completes £20 million tax payment as coffee chain seeks to put scandal behind. The Independent [Digital version]. http://www.independent.co.uk/news/business/news/starbucks-completes-20-million-tax-payment-as-coffee-chain-seeks-to-put-scandal-behind-9896360.html
Tekin, Z. (2017, April). International investment law and treaty shopping through corporate nationality structuring. The 2017 University of Pennsylvania Journal of International Law Online Symposium: International Investment Law. https://web.archive.org/web/20210202034306/https://pennjil.com/international-investment-law-and-treaty-shopping-through-corporate-nationality-structuring/