Contractual Risks Overseas

In: Business and Management

Submitted By wlounsbery
Words 645
Pages 3
Contractual risks overseas

Business 601: Global Management Perspective

A firm that is looking to delve into the global arena will need to have its management team and attorneys to do diligent research into governmental, local and societal issues that could affect the company’s expansion and overall profitability. There are many factors that could play a role on where and how a company goes global. Some countries have strict environmental, employment and societal requirements that have to be met by all companies doing business within their borders. With proper research, a company can take the necessary steps to increase their footprint in the right location and continue to keep their shareholders content with management’s decisions. While making these decisions, contract negotiations will have to be done with local and governmental officials and these negotiations can be somewhat disconcerting to management but they will be worthwhile when they protect all assets of the company. There are six elements that make international business contractual process different than the domestic process: 1. The parties must deals with the laws, policies and political authorities of more than one nation. 2. The presence of different currencies means that issues may arise due to that contractual payments may vary and many governments want to control the flow of domestic and foreign currencies across their national borders. 3. The participation of governmental authorities could pose problems because of the rigidity of caused by governmental bureaucracies and the sovereign immunity can create other legal complications into the contractual process. 4. Vulnerability to sudden and drastic changes to international circumstances for example; war, changes in government and devaluation of currency. 5. Different ideologies, countries will have a…...

Similar Documents

Business Contractual Relationship

... -----case 1 1. What is duty of care? According to business contractual relationship (2007), the law of delict, like the law of contract, is a part of the law of obligation. A delict has been defined as: A civil wrong commented by a person in deliberate or negligent breach of a legal duty, from which liability to make reparation for any consequential loss or injury may arise. It also states that delictual obligations do not arise voluntarily, as is the case with contractual obligations. However, the contract is voluntary. There are three elements noted in General Principles of Delictual Liability: • a loss or injury, such as physical or personal injury, the loss of earnings, nervous shock, distress, damage to a reputation • caused by a legal wrong(wrongful conduct) • Caused by culpa (fault, intentionally or negligently done) on the part of the wrongdoer. Two exceptions argued that: • vicarious liability, where the defender for the actions of another • Strict liability, where liability can arise without fault through statutory provision. If two or more persons have contributed to the delict, then they are jointly & severally liable. The injured party can sue one, or all together---and claim full damages. If he only sues one, then the other can recover a contribution from the others according to what the law thinks just: law reform, act 1940. Business contractual relationship (2005) claims that in certain circumstances, someone......

Words: 2800 - Pages: 12

Risk Oversea

...HIGH RISK POLICY INTRODUCTION 1 RISK ASSESSMENT 3 RIGHT TO DECLINE 4 EMERGENCY PLANNING - CRISIS MANAGEMENT 4 RESPONSIBILITIES 6 VIOLENCE 13 INTRODUCTION The BBC has special arrangements in place for high risk work. This includes deployments to hostile environments, undertaking activities such as covert filming of dangerous groups, and covering events such as terrorist incidents, natural disasters or pandemic diseases.  High Risk is defined more fully below. Definition of High Risk & Travel Advisory terms High Risk is defined as a significantly higher than normal risk of death or serious injury resulting from: • Hostile Environments – a country, region or specified area subject to war, insurrection, civil unrest, terrorism or extreme levels of crime, banditry, lawlessness or public disorder; or areas with extreme climate or terrain. • High Risk Activities - investigations involving covert surveillance or filming and/or confrontation of terrorist, serious criminal, extremist or violent political groups. • High Risk Events -riots, civil disturbance or extreme public disorder, terrorist or armed criminal incidents such as hi-jacking or sieges, any event involving chemical, biological or radiological (CBR) substances, extreme climatic events and natural disasters such as hurricanes, severe floods, earthquakes, volcanic eruptions, etc. or outbreaks of serious diseases and pandemics. Travel Advisory Areas are countries that have specific safety or......

Words: 4334 - Pages: 18

Business Overseas

...Business Overseas James Hall AIU Online Unit 5 IP Business Overseas “No culture can live if it attempts to be exclusive”. -Mahatma Gandhi In order for any business to travel overseas and find success they must first learn to understand and appreciate the culture in which they plan to thrive. Learning this and losing your sense of ethnocentrism, the belief that your own culture is superior to another, is something that many business fail to do and in turn never find success. In order to find success overseas we must first learn to view their culture with and open-mind, or cultural relativism, and judge them according to the standards of their society, not our own. You must look at many things before trying to establish a foothold overseas. To prevent culture clash you must recognize the barriers you may face including language, cultural values and cultural norms. One way to avoid language barrier is to make sure the plant opened in Asia has local personal that not only understand the language but also understand the region in which you expect to establish a foothold. If a business is unaware of the values in which the society holds they can risk offending rather than satisfying their desire for your product. This is why local personal is important. These individuals will not only be knowledgeable of the language, religion, values, and culture norms but they will be comfortable executing these values. This prevents the culture shock or disorientation one might......

Words: 755 - Pages: 4

Overseas Listing

...available at SciVerse ScienceDirect Journal of Banking & Finance journal homepage: www.elsevier.com/locate/jbf Overseas listing as a policy tool: Evidence from China’s H-shares Qian Sun a,⇑, Wilson H.S. Tong b, Yujun Wu c a Department of Finance, School of Management, Fudan University, Shanghai 200433, China School of Accounting and Finance, Faculty of Business and Information Systems, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong Special Administrative Region c Wealth Management Institute of Lujiazui, Shanghai 200122, China b a r t i c l e i n f o a b s t r a c t We investigate why the Chinese government chooses to perform share issue privatization (SIP) of its state-owned enterprises (SOEs) in Hong Kong, despite the benefit of facilitating the domestic stock market development if performing SIP in China (Subrahmanyam and Titman, 1999) and the higher cost to list in Hong Kong. We address this issue by arguing that the positive effect of SIPs on the development of the domestic market may have limitations, especially when the domestic market is not well developed and cannot absorb rapid and large-scale SIP activities. To maintain domestic market order, it may be optimal to carry out SIP in overseas markets. Furthermore, by listing shares in developed overseas markets, SOEs from the less developed countries could leverage on the overseas markets’ better accounting, governance, and legal standards. By examining a sample of 92 Chinese firms......

Words: 18188 - Pages: 73

Overseas Investment

...mua háng hóa, dịch vụ của Việt Nam để chuyển ra nước ngoài thực hiện dự án.  Số liệu chi tiết Cục Đầu tư nước ngoài Vietnamese firms invest over $24.5b in foreign countries as of July-end Till the end of July 2011, Vietnamese enterprises have registered to invest in over 600 projects with a total pledged capital of over $24.5 billion in foreign countries, according to Overseas Investment Department (Ministry of Planning and Investment-MoPI). Of which, the investment capital of Vietnamese investors exceeded $10.7 billion and chartered capital of Vietnamese investors also reached approximately $10 billion. They mainly invested in mining sector with about $17 billion, of which, Vietnamese investors poured over $4.3 billion and chartered capital of over $3.7 billion. Ranking in the second position is production and distribution sector of electricity, gas, water and air-conditioner with over $2.1 billion dong but investment capital of Vietnamese investors accounted for nearly $1.9 billion and chartered capital of nearly $1.7 billion. Sectors of agriculture, forestry and fisheries also have many overseas investment projects with a total registered capital of over $1.4 billion, including over $1.33 billion of Vietnamese investors’ investment capital. Laos, Cambodia, Venezuela and Russia are four leading destinations for investment flow from Vietnam with registered capital of exceeding $1 billion. Of which, Venezuela attracted the biggest volume of investment capital......

Words: 1041 - Pages: 5

Overseas Chinese

...OVERSEAS CHINESE TABLE INTRODUCTION: Defining overseas Chinese 4 UNDERSTANDING OVERSEAS CHINESE A. History and cultural background 1. Southeast Asia 2. North America 3. Europe 4. Chinatowns B. The reasons for immigrating abroad 1. Political reasons 2. Economic and social reasons C. Current status 1. Population distribution 2. Southeast Asia a. The overseas Chinese’s paradox b. The Indonesian case 3. The United States 4. Europe BUSINESS WORLD OF CHINESE A. Rise of Global Chinese Companies & Huaqiao B. Regional Analysis 1. Asia 2. The United States 3. Europe C. Size of Chinese Capital Worldwide SUCCESS OF OVERSEAS CHINESE A. The Business Style B. The Downside of their Business Style THE CHANGES IN THE OVERSEAS CHINSESE SOCIETY A. Old and New Generation: How are they Different? B. The New Business of the New Generation C. The New Trend in the Chinese Immigration CONCLUSION A. Future Outlook of the Hua Qiao B. The opportunity to work with Overseas Chinese: WCEC 2005 in Seoul Introduction Defining overseas Chinese Overseas Chinese are ethnic Chinese people who live outside of China. China, in this usage, may refer to Greater China including territory currently administered by the rival governments of the People's Republic of China and the Republic of China as per traditional definitions of the term prior to the Chinese civil war, or only to the People's Republic of China by some quarters. In addition, the government of the Republic of China granted......

Words: 7862 - Pages: 32

Contractual Issues

...Contractual Issues Memorandum TO: Information Technology Officer FROM: Legal Advisor DATE: March 31, 2014 Issues EULAs can highlight things that can put you at risk. The harm comes from ignoring EULAs— and the subtle warnings they might contain—by blindly agreeing to their terms: • Ignoring EULAs can expose your computer to security risks. • Ignoring EULAs can put your privacy at risk. The following issues were noticed when scrutinizing the VMware’s End User License Agreement: 1. It is a shrink wrapped contract: by simply downloading the software the company agrees to the terms of the EULA. 2. Liability for third party use: The company will be liable for our third party agents compliance with the terms and conditions of the EULA. Any breach of VMware’s EULA by a Third Party Agent shall be deemed to be a breach by our company.  3. EULA allows VMware to monitor internet activities. 4. VMware collects personal information: VMware may collect information about individuals such as their name, address, telephone number or email address, user IDs and passwords, billing and transaction information, credit card or other financial information and contact preferences. 5. Choice of Law: VMWare has a choice of law provision in its EULA that all disputes will be governed according to the laws of the state of California. 6. VMware can fully use and disclose any information not in personally identifiable form 7. Company will be liable for......

Words: 841 - Pages: 4

Overseas Companies

...Overseas companies registered in the UK GPO1 March 2015 Companies Act 2006 Is this guidance for you? This guide will be relevant to you if: • you are an overseas company thinking of opening a UK establishment • you are an overseas company with a UK establishment looking for basic guidance on your continuing filing and disclosure obligations • you act as an adviser to an overseas company and are looking for guidance on registration and disclosure requirements in the UK GPO1 March 2015 – Version 3.1 Companies Act 2006 Page 2 of 22 Contents Introduction Chapter 1. Who needs to register? Chapter 2. Registration Chapter 3. Delivery requirements Chapter 4. Changing the accounting reference date or accounting requirements Chapter 5. Disclosure requirements Chapter 6. Insolvency, winding up and closure Chapter 7. Quality of documents Chapter 8. Further information This guide answers many frequently asked questions and provides information on completing the most commonly used filings relating to this area. The guide is not drafted with unusual or complex transactions in mind. Specialist professional advice may be needed in those circumstances. GPO1 March 2015 – Version 3.1 Companies Act 2006 Page 3 of 22 Companies Act 2006 Introduction This guide explains how to register an overseas company that opens an establishment in the UK. It also provides guidance on the disclosure......

Words: 6462 - Pages: 26

Contractual Agreements

...In order to establish a contractual agreement between Futuretronics (‘FT’ hereafter) and Graphix Labels (‘GL’ hereafter), the common law dictates that we must satisfy the elements of offer, acceptance and consideration. These elements are to be determined objectively, in regards to whether a reasonable person would believe a contract to exist between the parties. Though we must carefully analyse these elements separately, it is important to note that in essence, the courts are trying to determine whether an agreement was reached between the parties. For the purposes of the assignment, this advice will be based on the assumption that the Electronic Transactions Bill 2011 (WA) (‘ETA’ hereafter) has passed and is in force. We will apply the bill in regards to the ‘timing’ of offer and acceptance between the parties. Offer An offer is an indication of a party’s willingness to enter into an agreement and be bound by stipulated terms. On 4 January 2006 Mr Chonja of FT sent an order via text message to GL for 21000 skins for iPod Shuffles, iPod Minis, iPod 4Gs and Xbox 360s, totalling $32099. Whilst it would appear to a reasonable person in the position of GL that FT intended the offer and that if accepted, a binding agreement would be made, there is another possible determination of whether an offer actually occurred. The facts reveal that in 2005 various dealings took place between FT and GL. GL may argue that text message is an unacceptable mode of communication to......

Words: 1620 - Pages: 7

Contractual Law

...Assessment #2 Questions 1.) Is Mr. Alpert obligated to keep the offer open until the specified time? What could Ms. Burke have done to better protect her position? (3 marks) No, R. Alpert is not obligated to keep the offer open if he has received another offer to purchase before the offeree (J.Burke) has accepted it. As specifically stated in the written offer, “I hereby agree to sell to J. Burke my entire fleet of Rolls Royce automobiles for the sum of $1 million. This offer is open until Monday, September 21, at 9:00 a.m.” The offer is a tentative commitment on the part of the person making it. It is only until the other party accepts (the offeree) that the offer becomes contractual and there is an actual binding legal agreement and obligation for R. Alpert to sell only to J. Burke until the stated deadline. The textbook illustrates a perfect example of a very similar scenario in the Dickinson v. Dodds case when Dodds made an offer to sell to Dickinson for $800 and said “this offer to be left over until Friday 9:00 a.m.” There is a clear illustration that there was an open offer and a certain time frame for the offer to be accepted is clearly stated. The case is very important because it truly demonstrates the nature of an offer and the effectiveness of accepting an offer. R. Alpert had the freedom to withdraw at anytime before it was accepted. The Dickinson v. Dodds case also had a similar scenario where Dickinson indirectly found out about the sale of the......

Words: 2435 - Pages: 10

Contractual Remedies

...Contractual Remedies Brandi Brothers Grantham University Abstract When one breaches a contract, the non-breaching party may be entitled to compensations because of legal rights detailed in that contract. In this paper I will discuss an agreement between two parties that resulted in a breach of contract. I will also discuss the consequential, incidental and compensatory damages that one company is liable for in this case. Haply Inc. goes under contract with Barksdale LLC to get an engine fixed. During that time both companies came to a settlement that the engine would be fixed and reinstalled at the Haply’s facilities but in five days’ time and no more. Barksdale was also briefed by Haply and made them aware that if the engine wasn’t repaired on time that bad press would cause them to lose a client which Haply would have to come out of pocket $40,000 per day for a replacement if the engine wasn’t delivered after the five-day window. Barksdale did not complete the contract until the 7th day. Because Barksdale did not honor their contract, Haply had to come out of pocket $40,000 per day for those extra days and another $500 to secure the delivery of the replacement engine. Barksdale didn’t fulfill their end of the bargain resulting in Haply losing a client’s business totaling $3,000,000. Because this was such a big lost for Haply they decide to sue Barksdale for incidental, consequential and compensatory damages. Incidental damages are......

Words: 549 - Pages: 3

Overseas Learning

...Name: Ramlah Binte Eesah Student ID: K1571682 Course Title: BA English with Psychology Assignment Number: TMA02 Should the Singapore MOE continue to conduct overseas learning journeys even after the incident of the Sabah Earthquake? One of the best ways to broaden our minds is to travel and be exposed to the world. Schools in Singapore provide overseas learning journeys to encourage students to learn not only through the classroom but also through experiential learning, giving them the chance to break out of their academic routine. Students should be encouraged to embark on overseas learning journeys provided by their schools as it develops their leadership skills, gives them a greater sense of independence and confidence, and allows them to become appreciative and altruistic individuals (Ministry of Education (MOE), Para 1, 2014). Overseas learning journeys have allowed students to develop their leadership skills. The Member of Parliament, Dr Lim Wee Kiak, highlighted that “For many of the students, the experience of having to overcome the physical and mental challenges to conquer Mount Kinabalu was a metaphor for learning to conquer themselves and future challenges in life” (MOE, Para 7, 2015). Such trips have enhanced students’ social competence, allowing them to go beyond their comfort zones and confront challenges that may befall them. These experiences have been beneficial to students as they learn to resolve issues and make independent decisions without......

Words: 1380 - Pages: 6

Expanding Overseas

...Expanding Abroad: Is it Worth the Effort Owning and operating a business is not something that comes easily to most people, after all many businesses struggle to keep afloat in their own country forget about opening a business overseas. Running a business can be a challenge especially trying to do it from a different country. There are many things that you need to take into consideration such as language barriers, currency exchange and customs to name a few. Many entrepreneurs look to the international market because they have lower startup costs and there is less business around to compete for startup costs. This by no means makes starting a business overseas easy however; there are definitely tricks to the trade. As with anything there are challenges, setting up an international business takes a lot of time and could potentially take longer than a business started in your own country. Dealing with the international laws and tax regulations is a job in itself. A lot of thought needs to be put into starting the business as there are far more things to think about such as transportation, utilities, internet speed and economic stability. Not many people would think about it but traffic and transportation are huge things to consider. Traveling three miles to the office in the United States which takes ten minutes could take easily three hours while in another country. Opening a business in unfamiliar territory certainly opens up a myriad of roads to be traveled and the......

Words: 1472 - Pages: 6

Overseas Studying

...Overseas Studying Winifred Mark King Class 2 June 8, 2011 Abstract This paper maintains that Chinese students can benefit a lot from studying in America. The paper will prove this statement by introducing the benefits that Chinese students want to and could get from studying in America. It contends further by analyzing with what advantages America could be the first choice, which also do students’ good. It concludes that either from students or America’s aspect, Chinese students can obtain lots of benefits from studying in America. The arguments will be supported by researches, facts and data. Outline Thesis: Chinese undergraduates could benefit a lot from studying in America. Introduction: Ⅰ. The favorable conditions provided by America in Chinese students’ view. A. The optimal way to learn English B. More convenient to visit America C. Increases life experience D. More job opportunities E. To be cross-cultural roles Ⅱ. The advantages America has A. The best education level B. Flexible education systems C. Impeccable scholarship system Conclusion: Overseas studying To be subjective, studying abroad is a serious decision to both individual and his whole family. Since the policy of reform and opening, the quantity of Chinese students heading to America is soaring high. Why more and more Chinese undergraduates go to the US? What’s the benefit for them? And what can they...

Words: 1253 - Pages: 6

Contractual Offer

...the offer has been accepted, such as when parties perform the terms of the contract. Lastly, it may be conditional on the happening of a certain event, such as, “I will accept your offer so long as you trim my fence in the next two days,” by its terms a conditional contract is a counter-offer. Most offers are by their very nature conditional, offers can be conditional upon various factors. If any conditions are included, it must be made sure that they are clearly stated. An acceptance must be in response to an offer. One cannot accept if he or she did not know of the offer. To protect the buyer and the seller, however, if an offer is intended, it should always be in writing and details indicated clearly. Termination of offer in contractual relations. Acceptance will be effective and will give rise to a contract only when the offer is still standing. Otherwise, the offer will automatically terminate in the following ways; The most obvious is rejection by the offeree. A counter offer will also have the effect of rejection. Where the offeror revokes the offer at any time before acceptance, the offer is effectively terminated. He may revoke it even when he has promised to keep it open for some time. Such a promise to keep an offer open is only gratuitous, and unless it is made under seal, it is not binding contractually. However, if consideration has been paid to keep the offer open for a specified period, that promise becomes binding and is...

Words: 1533 - Pages: 7