If a nation does agree to participate in activities of the supranational bodies and accept decisions, the nation is giving up its sovereign authority and thereby allocating power to these bodies. However, it is often at the discretion of each nation whether to co-operate or participate. When a country is recognized as de jure, it is an acknowledgment by the other de jure nations that the country has sovereignty and the right to exist. Supranational organizations provide mechanisms whereby disputes between nations may be resolved through arbitration or mediation. On that same note, states enjoy a wide measure of discretion to prescribe jurisdiction over persons, property and acts within their own territory unless there was a rule that prohibits this. The case outlines that jurisdiction is territorial and that a state may not exercise its jurisdiction in the territory of another state unless there is a rule that permits this.
The Lotus case establishes two key rules to the prescription and enforcement of jurisdiction. This raises the question of when can many states prescribe or enforce jurisdiction. These are equality of states, territorial sovereignty and non-intervention. The exercise of extraterritorial jurisdiction by three principles outlined in the UN charter.
Such agreements are not always established or maintained. Generally, international laws and treaties provide agreements which nations agree to be bound to.