Euro-training Center
 International Contracting (P4053) QR Code

International Contracting

Overview:

Introduction:

In international transactions, the parties may have different values and customs; they have to adhere to different sets of governmental regulations and are subject to separate and distinct laws under disparate legal systems. So, to take a very basic example, the Terms and Conditions which are applied locally may not be enforceable internationally. Thus a new approach and an “international outlook” are required to be incorporated into the company ethos to take account of these important factors.

In addition to tendering and contractual issues that can arise in domestic transactions, the parties must also learn to deal with all manner of subjects in the international context, such as logistics, export and import regulations, differing technical standards, foreign tax issues, payment, and foreign currency exchange. This fast-paced course is an introduction to the area of Global Sourcing and International Contracting, designed to alert you to the many issues which are involved when one has to work in the international arena

Course Objectives:

At the end of this course the participants will be able to:

  • Understand the challenges presented by foreign currency exchange rates
  • Draft and develop International Contracts to protect their Organization's interests and reduce risk
  • Understand the International Labour Rates
  • Know the global sourcing process and methods of finding international suppliers
  • Select items and services for global sourcing
  • Avoid the most common problems in changing suppliers
  • Recognize the different approaches to global sourcing and the benefits and disadvantages of each

Targeted Audience:

  • Purchasing, Projects and Contracts Professionals
  • Supply Management, Operations, Maintenance Professionals
  • Engineering and Quality Professionals
  • Project Management Professionals
  • Anyone who is now, or maybe in the future, involved in sourcing goods or services outside their own country and ethical or legal problems arising from differing labor or health and safety standards, etc.

Course Outlines:

Unit 1: Why Global Sourcing?

  • Why Organizations Outsource
  • Reasons For Going Global
  • Using Global Sourcing To Penetrate Existing Markets
  • The Global Sourcing Process
  • International Labor Rates,
  • Process For Selecting Items Or Services for Global Sourcing

Unit 2: Global Sourcing Approaches:

  • Sales Offices Of Global Suppliers
  • In Country Based 3rd Parties
  • Overseas Sourcing Agents,
  • International Purchasing Offices,
  • Going Direct
  • Identifying Potential Suppliers,
  • The Preliminary Interest Request.
  • Qualifying Potential Suppliers
  • International Tenders
  • Dealing With Other Cultures

Unit 3: Developing The Landed Price:

  • International Pricing Issues
  • Currency Issues
  • Import Duties
  • Transportation
  • INCOTERMS
  • Brokers & Forwarders
  • Payment Terms And Methods Of Payment

Unit 4: International Terms & Conditions:

  • Convention On Contracts For The International Sale Of Goods (CISG)
  • Sources For Standard Terms And Conditions
  • The Critical Integration Clause
  • Liquidated Damages/Penalties
  • Bonds And Bank Guarantees
  • Changes Clauses
  • Conflict Of Laws And Choice Of Law Clauses
  • Suspension And Termination
  • Acceptance Clauses
  • Contract Clauses That Assist In Prevention Of Fraud & Corruption

Unit 5: Negotiations, Resolution of Disputes, And Completion:

  • Negotiations Internationally
  • International Contract Administration
  • Before Shipment Checklist
  • Export Checklist
  • Shipping And Import Checklist
  • Warranty Issues
  • Dispute Resolution Clauses

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