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Legal Aspects of Business Decisions Unit 2 DB SA first week last submission - Essay Example

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One of the problem as depicted in case one, is where, a USA business company or organization sells some of their militarily equipment’s to…
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Legal Aspects of Business Decisions Unit 2 DB SA first week last submission
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Problems that US Military Business Encounter in Foreign Countries School affiliation Assessment one When it comes to military equipment’s sell to other countries, there are a lot of problem and challenges that USA businesses encounter. One of the problem as depicted in case one, is where, a USA business company or organization sells some of their militarily equipment’s to one foreign country that the company has no branch there. Problems arise where the foreign question at hand decides not to pay the America business company for whatever reason it is. This presents a serious challenge where the America business cannot sue the foreign country in its own country. This result in big problems where the USA business can run bankrupt and in the end is forced to close down.
Another critical challenge that arises is the difference in terms and conditions as set by different countries. The above mention problem could easily be avoided, whereby in any supply that is made to the foreign country, there must be full payment made for the products first. Again every country has their own set military supply policies, most of this policy poses a serious problem to USA military business, where as a result, many conflict arises and also there is delay in payments or no payments at all.
Assessment Two
Foreign countries have laws in place that favors their own military where by incase of any conflicts, the foreign countries courts can defend their country and America business will have little control over that. Foreign countries understanding of USA military products may different, as a result any slight defect that they foreign countries detect, maybe used against USA business for no reasons.
America business can use their own courts to follow up on other foreign countries disputes, but this too faces a challenge due to the time factor incurred and legal procedures that are undertaken for the same, this is seen where American courts lacks legal jurisdiction in foreign countries territories.
One best thing that favors American business is the existence of international customs and tribunal which comes in to settle any investment disputes that arises or the also investment disputes being solved by WTO, but this to poses a problem due to the money and time wastage incurred.
References
Fletcher, George. P., & Steve, Sheppard. (2005). American Law in a Global Context: The Basics, Oxford University Press. Read More
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