Toward Universalism In International Bank-ruptcy Law: Foundations For Strategy For-mulation In Selected Countries

Abstract

Two major impacts of globalization have been the dramatic increase in the number of multinational corporations that now exist and the wave of international bankruptcy law reform now taking place.  Multinational corporations are widening their search for new strategic opportunities and are venturing into new countries, cultures, and geographic markets in this pursuit.  As a result of the reform movement, bankruptcy laws in various countries are becoming more similar, are providing documentation that the Universalism Model is a pragmatic vehicle for resolving multinational bankruptcies, and are indirectly generating increased strategic opportunities for multinational corporations.

This paper comprises 1) a brief summary of globalization and its impact on the creation of multinational corporations; 2) a brief summary of the Territorial Model and the Universalism Model of international bankruptcy law; 3) a general discussion and comparison of bankruptcy laws in selected Latin American countries; 4) a discussion of the strategic implications of these countries’ bankruptcy laws; and 5) general conclusions regarding the strategic significance of global bankruptcy reform and Universalism.