Ours is a world in which the volume of the external trade of the vast majority of nations has greatly expanded and continues to be on the rise. Transnational intercourse of all kinds is now a feature of an interdependent world economy in which no nation can afford to stand aloof from a market-place which has assumed global dimensions. It is also a world where many nations, and not only of the Socialist bloc, conduct some of their transnational business themselves, or else they entrust it to state-owned cor- porations and to ...
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Ours is a world in which the volume of the external trade of the vast majority of nations has greatly expanded and continues to be on the rise. Transnational intercourse of all kinds is now a feature of an interdependent world economy in which no nation can afford to stand aloof from a market-place which has assumed global dimensions. It is also a world where many nations, and not only of the Socialist bloc, conduct some of their transnational business themselves, or else they entrust it to state-owned cor- porations and to agencies of the state. In these circumstances it becomes of prime importance to know whether a foreign state or an agency or instrumentality thereof can be sued before the local courts and, if so, whether the final judgement obtained can be enforced against the funds or property of the judgement debtor. The question of the immunity of states from suit and from execution is thus one of direct practical relevance not only to the legal profession but also to governments and the business and banking communities all over the world. The economic effects of a particular legal stand on state immunity are obvious. The position of national courts on state immunity can either attract more business or discourage further dealings with foreign states or their agencies. It can thus affect the balance of payments and, in general, the role the country plays in the world market.
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