· “effects” principle—The “effects” principle refers to the situation where a state assumes jurisdiction on the grounds that the behavior of a party is producing “effects” within its territory. This is the case even though all the conduct complained of takes place in another state. The use of the “effects” test has arisen most often in situations which are described as the exercise of “extraterritorial” jurisdiction by a country. The United States, for example, has been subject to considerable criticism for purporting to control events and exercise jurisdiction over activities that occur outside of its borders, particularly in the antitrust area and in the area of export controls.
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