A lot of good came out of globalization in business and trade, giving rise to what is now known as the “global marketplace”. The globalization of markets and competition was brought about, in large part, by the high speed of technological advancements.
As transportation and communication vastly and quickly improved, so did the access of consumers to products and services, even if they happen to come from different parts of the globe. International divides and barriers that used to be seen as obstacles to trade have become manageable, so that even small businesses are now able to sell their products and services to consumers in other countries.
IMPACTS OF GLOBALIZATION OF TRADE AND BUSINESS
Many positive benefits gained from the globalization of business and trade. Right off the bat, we can say that the emergence of the global marketplace has resulted in economic growth all across the globe. Floundering economies have been injected with new life, and already flourishing economies find themselves prospering even more.
- Easier and faster access of end users and consumers to quality products and services from around the world. It is no longer impossible or difficult for someone from the United States, for example, to acquire goods manufactured and sold in Asia, and vice versa.
- Broader selection of products and services enjoyed by consumers. End users are no longer limited when it comes to choices, since they can look to other countries for the products and services that they are looking for.
- Increased awareness of business opportunities in different parts of the globe. International investments definitely get a big boost over this, aside from the fact that aspiring entrepreneurs who may find their own markets to be lacking in opportunities can look beyond their borders and shores to find better business opportunities.
- Increase in the quality of products and services. Competition in the global market place spurred businesses and industries to improve the quality of the products and services that they offer to the global consumer. They know that, if they do not focus on quality, they will be left behind by their competitors from other countries.
- Increase in job and income-generating opportunities. Jobs are created as businesses the world over increasingly become competitive. Earning power of workers are likewise increased while raising their income levels.
INTERNATIONAL BUSINESS DISPUTES
International disputes are, by definition, major disagreements between two or more countries on matters such as territory, maritime rights, and human rights, to name just a few. These disagreements may also be over business, considering how trade and business has joined the globalization bandwagon.
International disputes, however, are not limited to two or multiple parties disagreeing actively, because they may also arise from declarations made unilaterally by one country that are not acknowledged or accepted by other countries.
If these international disputes are not addressed and resolved, they could lead to bigger problems of global proportions, such as animosity and hostility between and among countries, tense international relations, or, worse, armed conflicts and wars.
RESOLVING INTERNATIONAL BUSINESS DISPUTES
International trade and business, just like your regular domestic business, faces a lot of risks. This is why local businesses establish their own sets of risk management strategies. It is no different in the case of businesses that are engaged in international trade. They are also at risk of being embroiled in disputes and so they should also come up with ways to manage this risk. One way to do that is to pay attention to their dispute resolution measures.
Before you can start resolving an international business dispute, however, it is important to first have a full understanding of what the dispute is all about. Several types of international business disputes have been identified.
Types of International Business Disputes
Dispute on the sale of goods or commodities
The dispute could arise from the issues on:
- Product quality and quantity;
- Pricing or costing issues;
- Payment issues, such as the conditions and modes of payment, as well as the timing of these payments;
- Transportation or logistics, including the conditions on delivery of commodities or products;
- Other contractual provisions or stipulations, including how they were presented in a contract. Often, disputes arise due to vague stipulations and references on written contracts.
Clearly, this type of business dispute can be easily avoided if the contract was prepared properly and accurately, eliminating any vagueness or ambiguity. Everything should be set out clearly in order to avoid confusion.