business Practice and Practicality：the practice of doing bu
Introduction: Practice and Practicality
Topic Preview
This is留学生dissertation网an introductory topic which will cover the structure of the course and the topics which will be covered in the weeks ahead.
Topic Content
We will begin by listing the topics which will be covered in the following weeks. These are as follows:
1. Risk Management/Commercial Imperatives
2. Commercial Structures
3. Insurance Issues
4. Export Control
5. Performance Bonds/Letters of Credit
6. Local Custom
7. International Human Resources
8. Transport Issues
9. Contract Review
10. Dispute Resolution
This course will look at the practice of doing business overseas and will try to illustrate the practical use of some of the topics covered in other parts of the course. There may be some overlap with other subjects, but where possible we will try to concentrate on practical rather than academic issues.
We are going to look at doing business overseas from one major perspective and that is controlling risk. Whenever a company is considering doing business overseas recognising and controlling risk is probably the most important factor they will take into account in assessing whether they should do business overseas and if they decide to do so, then risk issues will usually dictate the commercial/legal format they will use. Of course, companies do not always have a strategy for going into overseas markets and in many cases they are driven to move into these markets for defensive reasons and do to so quickly to service the requirements of customers.
Let us begin by looking then at legal risk management:
• What is Legal Risk Management
• Recognition of risk
• Relevance to Business
• How the course will address risk
For the purposes of this course, Legal risk management will be given the following definition:
The recognition and control of commercial risk issues by the use of legal knowledge including knowledge and use of the law and the correct use of contractual rights and obligations
Recognising Risks
When advising a client in any situation, it is important to have a checklist which covers the following:
What risks exist or may exist for what the client is planning?
Are they acceptable to the client?
Also consider whether they are acceptable to you from a legal point of view. If they are not you should explain why not to the client and allow him to consider his position.
Can the risks be capped? How might this be done?
Are they insurable?
Are they controllable? Again, how might this be done.
For a business, accepting no risk is rarely helpful! You will rarely be able to eliminate risk, so you will have to strike a balance between accepting some risk and matching this to the commercial benefits. The client has a role to http://www.ukthesis.org/#p#分页标题#e#play in this.
It is useful to remember that:
• All business involves risk assessment
• Profit is related to risk
• Risk increases as businesses move outside the comfort zone
• Business will not succeed if risk is ignored
• Successful businesses are able to identify and control the risks which lie outside their comfort zone
The purpose of this course is to highlight some of the main risks associated with doing business overseas.
Risks will be recognised so they can be controlled or capped.
This helps businesses to understand risk, recognise it and try to capture it.
If businesses can do this, they have more chance of success in overseas markets.
Topic Activities
SELF-REQUIRED AND DISCUSSION GROUP
Problem One:
WeeCo Limited are looking for a way to sell their gozinties into a new market overseas. They want to speak to someone with contacts in the overseas market to see if they can help WeeCo to do this.
They are concerned about transport, costs and contact with customers. They want to ensure their good reputation will not be compromised.
Gallus Associates are a company in the overseas market. They have been introduced to WeeCo. Gallus are looking for a new product to sell. They have no manufacturing base of their own and want to import. They want to control the market as they have good contacts and a good reputation. They want to keep the import price low so they can make a good mark up. Alternatively, they may act as agents, but will want a reasonable commission for their efforts. They are not concerned too much about how the imports get into the country as long as the supply is regular.
What risks might WeeCo face when looking at the new market?
What risks might Gallus face when dealing with a new company?
How might these issues be resolved commercially?
Does it make any difference if Gallus is the agent of WeeCo rather than an importer or a distributor?
[30 mins]
Problem Two:
• Recognise the risks a business faces in moving into a new market
• Recognise the risks a business faces in moving into an overseas market. Are they the same?
• 留学生dissertationWhat are the differences?
• What are the similarities?
• Why do business overseas?
[30 mins]
Further Reading
http://www.tradepartners.gov.uk
http://state.gov/countries
