International transactions require an understanding of laws and culture in foreign lands. Issues that could pose lethal in international trade are choice of law, jurisdiction, culture and political interference represent areas to stay focused on. Understanding international contracts and court processes will assist when considerations regarding legal action arise with a foreign business partner. When working with another country deciding which nation’s courts to handle the dispute in during the contract negotiation process is essential. Implementing a Convention of Contracts for the International sale of Goods (CIGS) is one way to ensure rules for drafting sales and contracts are upheld in foreign nations. One factor that could work against CadMex is the political influence that is held in the Gentura company. The country Gentura is located in is Candore, the government owns the majority stake in the company.
Candore has a court system that has recently been restructured, and not always been fair with cases brought to court. Cultural differences and customs can be challenging, laws of the jurisdiction should be established during contract negotiations. Establishing choice of law and forum clauses will assist in settling conflicts that may arise. Week one focused primarily on domestic laws, ways to resolve issues, alternatives to dispute resolutions, and little on international law and global commerce. Although reading this week’s information and participating in the simulation I realize the importance of understanding business liability and risk in business operations both domestic and internationally.