Going international presents companies with numerous business opportunities. With operations in foreign nations, they can take advantage of resources and relationships that just wouldn’t be available if they restricted their operations to their home country. They also have an opportunity to create jobs, enjoy more competitive pricing and learn new ways of doing things.
While starting a venture in a foreign country can represent a rare and valuable opportunity, it’s also loaded with pitfalls. This makes it imperative to work with an experienced Orange County international transactions lawyer who can ensure that your risks are limited and that you truly make the most of your company’s opportunity.
As business people begin negotiating contracts and other agreements with foreign partners, it’s important that they be as explicit as possible. Too often, someone who is experienced with contract negotiations in their home country assumes that certain basic and obvious components of the agreement don’t need to be defined or explained. While this may be a safe assumption at home, the situation can be quite different abroad. Two parties to an American contract may begin with a similar set of assumptions, but when an American is negotiating a contract with a new partner in the Russian Federation, it can be careless and costly to blindly assume that a Russian business person has a similar set of understandings.
Many people who are new to foreign markets also don’t plan for exchange rate fluctuations. Once again, this can be a costly error as factors that are beyond the control of the business can severely affect costs and profits from month to month. This can make it impossible to plan. However, an Orange County international transactions lawyer can ensure that your company is protected by allocating risk of currency exchange fluctuations to one or both parties. There are several ways to accomplish this, which means that you won’t feel like your bottom line is at the mercy of factors outside of your control.
Globalizing your business is exciting, especially as you forge new relationships. However, it’s vital that any and all contracts be carefully and thoroughly negotiated before anyone signs on the dotted line. By carefully defining all contract terms and allocating exchange rate fluctuation risk, both parties should be able to enjoy a greater degree of success. Contact Fitzgerald Yap Kreditor LLP at (949)788-8900 to learn more. You can also email Eoin Kreditor at firstname.lastname@example.org to schedule an appointment. Let us put our three decades of experience in representing all kinds of businesses to work for you in any of your transactional or business litigation matters.