Essential International Business and Legal Terminology

Posted on Apr 23, 2026 in Law & Jurisprudence

A. Globalization & International Trade

  • Globalization (Globalización): Countries become more connected through trade, culture, technology, and money.
  • Hard Power (Poder Duro): A country forces others using military or economic tools such as tariffs or sanctions.
  • Soft Power (Poder Blando): A country influences others through attraction, culture, education, and diplomacy.
  • Smart Power (Poder Inteligente): Combination of hard and soft power to achieve better results.
  • Offshoring (Deslocalización): Moving production to another country for lower costs.
  • Outsourcing (Externalización): Hiring another company to perform a task instead of doing it internally.
  • Reshoring (Relocalización): Bringing production back to the home country.
  • Nearshoring (Nearshoring): Moving production to a nearby country.
  • Friendshoring (Friendshoring): Moving supply chains to politically allied countries.
  • Decoupling (Desacoplamiento): Reduction of economic interdependence between countries due to political tensions.
  • Supply Chain Diversification (Diversificación Cadena Suministro): Sourcing inputs from multiple locations to reduce risk.
  • Deglobalization (Desglobalización): Reduction of global trade and increased protectionism.
  • Economic Nationalism (Nacionalismo Económico): Protecting domestic industries through tariffs and subsidies.
  • Economic Integration (Integración Económica): Countries reduce trade barriers and coordinate economic policies.
  • Tariff (Arancel): Tax on imports to make foreign goods more expensive.
  • Trade War (Guerra Comercial): Mutual imposition of tariffs between countries.
  • MNC (Empresa Multinacional): Company operating in multiple countries.
  • FDI (Inversión Extranjera Directa): Investment with ownership and control in a foreign business.
  • GVC (Cadena de Valor Global): Production stages spread across countries.
  • Regionalization (Regionalización): Economic activity concentrated within regions.

B. Sources & Classifications of Law

  • Constitution/Code (Constitución/Código): Highest law of a country that all others must follow.
  • Legislative Enactment (Legislación): Laws passed by parliament; primary sets main rules and secondary adds detail.
  • International Treaties (Tratados Internacionales): Binding agreements between countries once ratified.
  • EU Community Law (Derecho Comunitario): EU law; regulations apply directly and directives require national implementation.
  • Jurisprudence/Case Law (Jurisprudencia): Law created by judges based on precedent.
  • Customary Law (Derecho Consuetudinario): Unwritten rules based on long-standing practices.
  • Conflicts of Laws (Conflicto de Leyes): Choice of law and jurisdiction when multiple countries are involved.
  • Substantive Law (Derecho Sustantivo): Defines rights and obligations.
  • Procedural Law (Derecho Procesal): Governs how rights are enforced.
  • Civil Law (Derecho Civil): Law between private parties.
  • Criminal Law (Derecho Penal): Law dealing with crimes against society.

C. Competition Law

  • Anti-Competitive Agreement (Acuerdo Anticompetitivo): Agreements that restrict competition.
  • Cartel (Cártel): Secret agreement between competitors not to compete.
  • Leniency Programme (Programa de Clemencia): Reduced penalties for the first firm reporting a cartel.
  • Abuse of Dominant Position (Abuso de Posición Dominante): Unfair use of market power.
  • Merger Control (Control de Fusiones): Authorities review mergers to prevent reduced competition.
  • Horizontal Merger (Fusión Horizontal): Merger between direct competitors.
  • Vertical Merger (Fusión Vertical): Merger between firms at different production stages.
  • Concentric Merger (Fusión Concéntrica): Firms share customers or markets but are not direct competitors.
  • Conglomerate Merger (Fusión Conglomerado): Firms in unrelated industries merge.
  • CNMC / FTC / CNMV / SEC: Competition and financial regulators.

D. Contract Law

  • Consideration (Causa/Contraprestación): Exchange of value required for a valid contract.
  • Good Faith (Buena Fe): Parties are expected to act honestly.
  • Pacta Sunt Servanda (Los pactos se cumplen): Contracts must be fulfilled.
  • Rebus Sic Stantibus (Cambio de circunstancias): Contracts may change due to unforeseen events.
  • Force Majeure (Fuerza Mayor): Uncontrollable event suspending obligations.
  • Hardship Clause (Cláusula de Hardship): Allows renegotiation when performance becomes very difficult.
  • Frustration of Purpose (Frustración del Contrato): Contract ends if its purpose disappears.
  • Impracticability (Imposibilidad Práctica): Performance becomes extremely difficult or costly.
  • Abusive Clause (Cláusula Abusiva): Unfair term declared invalid.
  • Boilerplate Clause (Cláusula Estándar): Standard contract provisions.
  • Penalty Clause (Cláusula Penal): Pre-agreed compensation for breach.
  • Duress (Coacción): Contract signed under threat is void.
  • Undue Influence (Influencia Indebida): Contract signed under pressure is voidable.
  • Unconscionability (Cláusula Leonina): Extremely unfair contract not enforceable.
  • Due Diligence (Diligencia Debida): Investigation before a transaction.
  • Damages (Daños y Perjuicios): Financial compensation ordered by a court.
  • Statute of Limitations (Prescripción): Time limit to bring a claim.
  • Forum Shopping (Forum Shopping): Choosing the most favorable court.
  • Disclosure Letter (Carta de Revelación): Document limiting seller liability in M&A.
  • Locus Standi (Legitimación Activa): Right to bring a legal action.
  • Preemptive Right (Derecho Preferente de Compra): Right to buy before others.
  • Liability (Responsabilidad): Legal responsibility for harm.
  • Tort (Responsabilidad Extracontractual): Civil wrong outside contract causing damage.

E. Intellectual Property

  • Patent (Patente): Exclusive right over an invention for 20 years.
  • Trademark (Marca): Distinctive sign identifying a brand with renewable protection.
  • Industrial Design (Diseño Industrial): Protection of product appearance.
  • Copyright (Derechos de Autor): Protection of creative works for the life of the author plus additional years.
  • Geographical Indication (Denominación de Origen): Protection of products linked to a specific geographic origin.