International Business Agreement Considerations (Research Paper Sample)

Business Law:
International Business Agreement Considerations
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International Business Agreement Considerations
Introduction
When an individual is carrying out a business in the US that involves international business agreements, differences in legal systems can significantly affect its success. When an entrepreneur is planning to set up a domestic trading business in the US that consist of trading in children’s garments, it is essential for the individual to consider making agreements that conform to international business law considerations. Ensuring that the entrepreneur enters into agreements unique to international business policies is an essential factor for the entrepreneur since it ensures its security (Stetsiuk, 2018). For instance, an entrepreneur should be familiar with the procedures involved in the termination of a contract with an international su[pplier for children’s garments based in China. Being aware of such procedures ensures that the US government covers the entrepreneur in any circumstance. Therefore, the following paragraphs of this essay will analyze what an entrepreneur should know to establish a domestic US trading business in children’s garments where international agreements are entered from a business law perspective.
What an Entrepreneur Should Know
From a business law perspective, there are several factors that na entrepreneurs should know to ensure that the business becomes successful without having any problems both with the government and the international business partner. The following are some of the factors that an entrepreneur should consider before engaging in a business operation that involves international agreements within the US.
Parties
Before agreeing with an international business partner, the entrepreneur should consider whether the company is legally registered to carry out business operations in its home country and obliges all government regulations concerning the product being acquired. The entrepreneur should obtain the supplier’s company chart to determine its profile, including any other factors such as business affiliations to ensure maximum safety and strong continued future business partnerships (Stetsiuk, 2018). The entrepreneur should also ensure that the individual responsible for signing the agreements on behalf of the supplier business should have the legal accreditation to perform the activity and follow all the required legal formalities both locally and internationally.
Duties
The entrepreneur should be familiar with the duties of each party stipulated in the international business agreements. Conflicts are likely to arise concerning duties within a business contract. One party may assume that the other party is responsible for performing certain duties and incurring specific costs within an agreed business operation. Considering this, both the duties of the children’s suppliers and those of the US entrepreneur should be fully described within the agreement specifying each parties’ specific role within the business (Dewi, 2020). For instance, international business has specific requirements concerning tax policies, shipping procedures, and unique handling. Therefore, the entrepreneur should ensure that the business agreement includes all the INCOTERMS rules, which will ensure that the agreement contract covers all the requirements concerning costs, risks, and duties that should be observed during shipping the goods from another country to the United States. The entrepreneur should also consider all the government licenses required to ship children garments to the US and decide which party should incur the costs of processing such essential documents.
Anti-Corruption
The entrepreneur should consider reviewing the US Foreign Corrupt Practices Act (FCPA), limiting any act of corruption, including making payments to foreign government officials to initiate or maintain a business (Dewi, 2020). The FCPA applies to all US citizens, local companies, and international organizations to ensure that businesses enter healthy and clean agreements without bribery. Therefore, the entrepreneur should ensure that the agreement contains an independent section limiting the parties involved from making any prohibited payments about the FCPA terms of business regulations. In addition to this, the section of the agreement prohibiting unlawful payments should offer the terms of terminating the contract if one party violates the section.