The creator has a right over his “intellectual creation.” Pedreira of Lawyers.com expounds further that, intellectual property law protects the creative works of authors, composers, designers, and inventors from being pirated or copied without their consent. His intellectual property right over his creation or invention may be modified as when he enters into a license agreement. In such an agreement the creator gives someone permission to do a certain activity to or to use his intellectual creation. The firm that obtains the license agreement can now distribute the intellectual creation or “goods” within the domestic and international market. As the domestic and global operations of the small firm expands, demands increase and consequent production triples, the small firm might not be able to handle the costs for the same. The solution is to borrow capital. If there are insufficient investors from the country, it may become necessary to seek investors outside of the country. This is called foreign direct investment and is defined by Graham of Citibank “as a company from one country making a physical investment in buildings, machinery and equipments. Such investments require planning for the risks that will occur in your business.” Planning is crucial to the success of the endeavor. This process is called Managing risks. This necessitates insurance coverage to cover most if not all possible risk factors.
Cruz (1982) defines International law as “that branch of public law which regulates the relations of states and of other entities which have been granted an international personality.” An article appearing in the Cornell University’s Law School’ website expounds on this definition. Accordingly, there is a public international law and a private one. Public International law refers to questions of rights between several nations; or questions between nations and the citizens of other nations.