Posts Tagged ‘Investment Environment’
There is no specific term as to the meaning of Globalization (G11N ). Different dictionaries give different meaning of the word ‘globalization’. However the term globalization is used in many contexts referring to particular industry. In the business and financial context it would mean that the increase of trade around the world, especially by large companies producing and trading goods in many different countries or a Tendency toward a worldwide investment environment, and the integration of national capital markets .
IMF defines globalization as ‘the process through which an increasingly free flow of ideas, people, goods, services, and capital leads to the integration of economies and societies. Major factors in the spread of globalization have been increased trade liberalization and advances in communication technology’ .
Globalization (globalisation) describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and execution.
In general globalization is the a governmental policy favoring free trade, open borders, the free movement of capital and goods (but not always of people), elimination of tariffs and price controls (including artificial control of currency values), and the privatization of publicly-owned or controlled enterprises
Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages. See also free trade .
Today, it has become possible that setting up of manufacturing units in the country where the labor is cheap and selling the goods all over the world. There also a growth in the services sector.
Although world globalization is popularly used today , elements of globalization can be found when the companies started to operate in many countries- elements dates back to 17th century where the companies like British East India company (founded in 1600) and Dutch East India company started to operate.
Dutch East India Company (Vereenigde Oostindische Compagnie or VOC in Dutch, literally “United East Indies Company”) which was founded in 1602 was the World’s First Multinational Corporation to be owned by investors through the issuance of stock equity It was also the first MNC to start a stock exchange in Amsterdam in 1602 .
However modern globalization began when great depression in the international trade took place in 1930s and various countries imposed import restrictions for safeguarding their economies. The USA made many proposals for extending international trade & employment. In 1947, 23 countries signed an agreement (GATT- general agreement on tariffs & trade) related to tariffs imposed on trade.
On 1st January 1995, the WTO replaced GATT, which had been in existence since 1947, as the organization overseeing the multilateral trading system. Upon signing the new WTO Agreements, members of GATT became the WTO members.
The World Trade Organization (WTO) which consists of 153 member nations deals with the rules of trade between nations at a global or near-global level. WTO is an organization for liberalizing trade, a forum for governments to negotiate trade agreements, and a place for WTO members to settle trade disputes.
Today’s Globalization is the result of WTO, fair treatment and the non discrimination is the main principals of WTO.
Globalization of Legal Industry:
Globalisation of legal Industry refers to the opening of legal market/industry in the country to the other nations so that they can set up law firm and offer consultancy services, practice law.etc
Globalization of Law:
Todays modern law passed by the countries in relation with the business, Intellectual properties, corporate law, banking, Internet law reflects the laws of many nations. Amendement to the these laws are carried out to accommodate such changes.
Legal education today is shifting from traditional methods of teaching to more innovative approaches. As we see in many country law schools the law subjects are similar to the other countries as to the basics of law, jurisprudence.
There is also an International law which governs the International Treaties, agreements. Intrnational law today is weak in context of enforcement,compared to the domestic law. As the nations are members of United Nations, sanctioning countries in violition with the International Law lies with the Security council.
Globalization of Legal Profession:
The history of legal profession dates back to the ancient Greece and Rome. Earlier the individuals were supposed to plead their own cases, which was soon bypassed by the increasing tendency of individuals to ask a “friend” for assistance. However, around the middle of the fourth century, the Athenians disposed of the perfunctory request for a friend.
In 204 BC , a law enacted by Romans, barred the advocates from taking fees.Later it was abolished by Emperor Claudius, who legalized advocacy as a profession and allowed the Roman advocates to practice openly
Today one needs to complete the law education approved by the Bar council and has to pass the bar exams of particular state and enroll before the sate to practice in the state.
However, the liberalization in the legal profession has made an individual/lawyer to practice law in other country.
1.England and Wales:
There are about 10,000 Barristers and 60,000 of solicitors in England and Wales today. The General Council of the Bar (known as the Bar Council) and other laws govern the barristers in UK and the Law Society of UK governs the Solicitors in UK. Only the Solicitors and Barristers are allowed to practice in the UK.
Practice of law by foreign lawyer:
Even the Foreign Lawyers eligible to be enrolled as the Solicitor of in England and Wales if he get through in the qualified lawyers of transfer Test(QLTT)
The Qualified Lawyers’ Transfer Test (QLTT), England ‘s official transfer exam for foreign attorneys. It is a test in which candidates are expected to demonstrate a basic familiarity with English statutes, cases, practice rules and the principles of common law. QLTT Exams are conducted in many countries annually. The test covers four heads (subject areas): Head 1 – Property, Head 2 – Litigation, Head 3 – Professional conduct and accounts, Head 4 – Principles of common law. There are exemptions to certain countries on this. Generally lawyers from common law countries who have studied their law in English medium needs to sit for professional conduct and accounts ( head 4 ) exam only. However most of the US attorneys need to get through in head 1, 2, and 3 also.
As on 2006,there were about 3,476 advocates and solicitors in Singapore. The Law Society of Singapore governs the represents solicitors and maintains and improves standards of conduct and training.
The Legal Profession Act (1967) governs the legal profession in Singapore.
Foreign lawyers are regulated by the Attorney General’s Chambers . The AG’s chamber registers and regulates foreign lawyers. It also formulates laws, rules, guidelines and policies relating to joint law ventures, formal law alliances, representative offices, foreign law firms and foreign lawyers practicing in Singapore and advises on the practical application of the laws governing the legal profession.
Foreign lawyers are required to register individually with the Attorney General’s Chambers in Singapore. Foreign lawyers cannot be sole practitioners and must work as employees, partners or directors in one of the following practice vehicles: As a foreign law firm, A Joint Law Venture (“JLV”),A Formal Law Alliance (“FLA”), As a foreign lawyer in a Singapore law firm.
3. South Africa
There are approximately 13 000 practising attorneys . Law Society of South Africa and regional law societies regulates advocates (barristers) and attorneys (solicitors).
According to section 15(1)(b)(iii) of the Attorneys Act, only the south African LLb holder is allowed to practice in the country. The Act also makes permanent residency or citizenship prerequisite as well as the passing of the South African Attorney’s Admission Examination prerequisite to the admission as attorney in South Africa.
There are certain exceptions to this rule. The Attorneys Act itself relaxes admission requirements with regard to candidates hailing from certain designated countries do not have to serve as candidate attorneys and can be exempted from the need to obtain a South African LLB degree as well as from the need to sit for the South African Attorneys admission examination
Foreign lawyers may establish under home title (e.g. as a Solicitor of England & Wales or as Attorney in USA) and are permitted to practice home and international law. In addition, they can also practice: international finance, project management, and arbitration.
Certain work relating to litigation, appearance in court and conveyancing can only be conducted by South African attorneys. Foreign firms are not permitted to practise local law or to enter into partnerships or fee-sharing