International Business Disputes


Currently, you are definitely living and existing in a global economy, and business is no longer merely conducted with individuals and businesses in a close geographic location. Consumers and businesses are dealing with others from all corners of the world. This brings about certain challenges to the business regarding the sales process.

Primary Task Response: Within the Discussion Board area, write up to 350–500 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your fellow classmates. Be substantive and clear, and use examples to reinforce your ideas:
Keeping in mind the United Nations Convention on Contracts for the International Sale of Goods (CISG), what are the implications for businesses that wish to operate within countries that have not agreed to this platform from the UN?
The purpose of business is to make money. Should a business engage in commerce in countries that have not accepted the CISG platform? Why or why not?

Sample paper

International Business Disputes

The United Nations Convention on Contracts for the International Sale of Goods (CISG) provides business with a fair platform to exercise international sale of goods. Businesses that wish to operate with countries not on the platform may face a number of implications. One of the implications is the increased risk of economic losses in case of non-fulfillment of the contract by the other party. The CISG provides businesses involved in international trade with a level platform for resolving contractual disputes. Another implication for such a business is lengthy contract negotiation process. The CISG provides the guiding rules for international contract negotiations and fulfillment. Thus, when a business operates in a country that has agreed to the rules it is easier to enter into an agreement because the CISG law automatically defines all business transactions.

Another implication for a business working in country that has not agreed to the platform is the risk of unfair trade practices. Such a business faces the risk of unfair trade practice since in the particular country, there is no agreements existing concerning business dealings. CISF rules provide member countries with a uniform law that applies to international business transactions. The uniform law promotes fairness across all countries regardless of their developmental status. The developed and the underdeveloped nations are all treated the same. Another implication for such businesses is the risk of ambiguous laws. Countries across the world have different laws guiding international trade. A business may not be able to interpret the laws of different countries putting it at risk. CISG provides a uniform law that is clear and transparent.

Businesses can still engage in commerce in countries that have not accepted the CISG platform. This is due to the presence of other international trade regulations that may guide such transactions. Businesses can engage in trade in countries that have clearly defined international trade regulations. Businesses should ensure they understand clearly the laws and regulations guiding international trade in such countries. If a country has a strong regulatory framework regarding international trade, then it means that the risks contractual failure is low. Engaging only in countries that have agreed to the platform could deny businesses an opportunity to obtain essential products that may not be available in countries that agree to the platform. The key thing is that businesses should ensure they take time and engage in considerable negotiations to avoid losses resulting from partial or nonfulfillment of the contract.


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