Question 1
Discuss the role of governments when companies engage in large projects abroad.Question 2
Discuss various forms of specialty contracts that may be involved in international business transactions.Answer 1
Governments will often become involved when the project is big enough, entering into BITs (bilateral investment treaties) and FIPAs (foreign investment and promotion agreements) designed to stabilize the investment environment for companies doing business abroad, especially for those involved in mining and natural resources extraction in countries where the political climate is unstable.Answer 2
A bill of lading contract establishes the rights and obligations of the parties and the carrier when goods are shipped through a third party carrier. A letter of credit contract is used where a third party is to ensure that the selling party is paid when the purchasing party is satisfied. An insurance contract is used to cover the risks of the transaction.