Globalization.

Globalization is a term describing the increasing interdependence, integration and interaction among people, companies and corporations around the world.

Globalization has a number of different aspects, such as: economic and financial globalization; political globalization; cultural globalization; technological and industrial globalization; informational globalization. All these aspects are closely connected and intertwined.

The economic aspects of globalization are free trade, investment and migration. The globalization of trade means that human beings may enjoy a wide range of goods and services. Critics of free trade argue that it may lead to the destruction of a country’s native industry, environment and a loss of jobs.

The globalization of investment means foreign direct and indirect investment. Critics of international investment are worried that a country may lose its economic sovereignty.

Free migration allows individuals to find employment in countries where there are labor shortages. But it may lead to the exploitation of migrant workers and the displacement of workers from a host country.

Political aspects of globalization deal with such problems as human rights, environment, etc.

Cultural global ties include new ideas, fashions through trade, travel and media.

One more aspect of globalization is the revolutionary change in technology, particularly, in transport and communication which creates a global village.

International globalization means increase in information flows between geographically remote places.

Globalization is a rather controversial issue. There are those who fully support it and who oppose to it.

Some (pro-globalists) think that globalization is economically, socially and ecologically positive. Globalization brings an increased standard of living and further wealth. It leads to lower prices, more employment and higher output.

Other (anti-globalists) contend that globalization is economically, socially, politically and ecologically negatives. It brings prosperity only to profiteers. Negative effects include cultural assimilation and the destruction of local and global community, ecology and cultures. It also harms the interests of poor people and poor countries.

People can share the opponents’ points of view or deny them. But the world is increasingly confronted with problems that can not be solved by individual nation. For example, air and water pollution, global warming, and international terrorism and so on. Solutions to these problems necessitate new forms of cooperation. So globalization is inevitable.

Contract law.

Contract law is a central part of legal systems all over the world. It is the means by which exchange relations are supported.

A contract is an agreement which can be enforced through the courts. Agreement between the parties is an essential ingredient of a contract. In order to be binding in law the agreement must include an offer made by the offeror (party making an offer) and an acceptance of the offer by the offeree (party accepting an offer). The terms of the agreement offered and accepted by the parties must be certain. They must have intended to be legally bound.

An offer is a willingness to contract on certain terms made with the intention that is shall be binding. All offer must be clear and contain the details of the contract.

The acceptance must exactly match the offer. Any deviation from the terms of the offer is called a counter-offer.

Once the offer has been accepted the contract is concluded.

Contracts usually consist of mutual promises. A promise creates for the promisor ( the person making the promise) a future obligation.

Most legal systems also consider the capacity of the contractors. There are some special rules, for example, if one of the contractors is an individual under the age of 18, or insane.

A failure to comply with the terms of contract is called a breach of contract. If one of the parties fails to perform his or her obligations, the other party may apply to a court for a legal remedy.

The usual award for the loss a party has suffered because of the breach is monetary compensation or damages. In addition to financial loss a plaintiff sometimes tries to claim damages for mental distress.

Instead of damages, a plaintiff sometimes asks the court to force the other contractor to carry out the contract. This is called specific performance.

A plaintiff may also ask the court to award an injunction against the defendant, that is, to order the defendant not to do something which would be in breach of contract.

Contracts are especially important in international business.