2.2.2 Legal Risk法律风险

2.2.2 Legal Risk法律风险

Every economy has its commercial laws and regulations,and legal proceedings may be different.Foreign or domestic laws may change,which sows the seed of legal risks.When disputes arise between traders from different economies,whose law shall have jurisdiction?The fact is,international trade is a field of a long history.A large body of rules and customs have been formed over the years to harmonize trade practices globally.These institutions cover each stage of a transaction from business negotiations,making delivery,collecting payment,to settling disputes.They generally fall into three categories:international treaties and conventions,international trade customs and domestic laws.International treaties and conventions are binding as long as a country or region is a signatory of the treaty or convention,such as the United Nations Convention on Contracts for the International Sale of Goods(CISG).International trade customs and domestic laws are not binding unless both exporter and importer mutually agree to adopt them in their contract.However,as some important international trade customs are commonly recognized by both international treaties and domestic laws,sometimes they are used as default criteria for settling international disputes,such as Incoterms and UCP 600.For beginners,a working knowledge of international business law shall help you clear obstacles and smooth your work down the road.