BA621-L4A8 - Peter A. Taylor February 1, 2010 May 21, 2010...

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Peter A. Taylor February 1, 2010 – May 21, 2010 BA621 Business Law Lesson #4 Assignment #8 1. What issue does the editorial raise? If South Korea, or any other country, infringes on the trust inherent in international contracts then there will be disastrous consequences for their own country and calamitous reverberations throughout the international economy. 2. What is the author’s conclusion? South Korea’s ruling in favor of protectionism versus contractual obligations adds fuel to the flame of the Asian economic downturn. Capital markets will dry up if anti-foreign policy continues and an international standard for contracts are not accepted by their courts. A high-risks crapshoot such as derivatives trading was a bad idea for a foreign investor to try in South Korea in the first place, but that does not mean outsiders should be punished for Korea’s decision to make bad bets. 3. Identify the author’s main reasons? The author cites several reasons involving derivatives-trading among two South Korean chaebols (Boram and SK Group) and J.P. Morgan, illustrating how Boram hedged its bets between J.P Morgan and SK Group. When the J.P. Morgan bet failed, they instantly cried foul in order to profit off of their SK Group swap. The author brings up how other Asian countries are hampered by protectionist leaning contract law,
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BA621-L4A8 - Peter A. Taylor February 1, 2010 May 21, 2010...

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