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International Commerce Risk

In: Business and Management

Submitted By mamendo
Words 655
Pages 3
International Commercial Risks
Maria Mendoza Suarez
LAW 421
June 16, 2014
Michael Green

International Commercial Risks
International law is not a simple process to adhere to, especially when trying to conduct business abroad. According to Melvin (2011), international law is best defined as a “body of rules and principles of action binding on countries, international organizations, and individuals in their relations with one another” (p. 631). Contracts and legal agreements are a crucial instrument or tool used when building relationships with other nations. There are many issues than can arise within a period of time that be minimized, if not avoided completely. There are factors that will need to be considered when deciding to take any legal action against the other nations, meanwhile respecting their customs and laws.
There are plenty of risks associated in international law that organizations must take into consideration when conducting business with businesses abroad. There are possibilities of disputes and disagreements between the businesses that could either damage their relationship or help improve the growth of their business. There are major issues involved that would need to be considered when a local business decides to take legal action against the nation whom the local organization is conducting business with. The first and second major issue is the understanding of choice-of-law and forum clauses. The choice-of-law is a clause are terms written within an international contract that states or predetermines which nation’s laws and court the two parties will be using to assist their potential lawsuit where the potential lawsuit under that same contract. The risk and expense of enforcement are important issues that need to be considered when arriving at a fitting pricing, delivery proposals, and insurance needs (Melvin, 2011). The choice-of-law...

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