International Business Considerations

Essay by eternidad4@hotmail.c August 2007

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Each student is required to write a project applying what we learn in class to real-life situations. Imagine that you are an international lawyer practicing in Portland and you have recently been hired by the two clients described below. Your job is to identify the issues that each client will encounter in this project and to put together a strategic plan to deal with these issues.

1.Samdai is a large Korean car manufacturer that has secured a substantial portion of the car market in Korea and in many other Asian countries. However, to date, Samdai has not sold any cars in the US. Samdai has recently decided to enter the US market and has hired you as its lawyer to handle the legal issues involved.

2. Swoosh is a small company based in Portland that manufacturers and sells inexpensive shoes throughout the US. The company has now decided that it wants to sell its shoes overseas and has hired you to handle the legal issues involved.

Text:SamdaiFor Samdai one of the first decisions they need to make is if they want to participate in directed business by setting up a branch or subsidiary or indirect business by selling to distributors in the United States, or possibly participating in a joint venture of some kind. In deciding what kind of entity they want to be they are going to need to take into account the issue of liability. If they decide to go with direct business, in order to deal with the issue of liability they will not want to set up a branch. It is a simpler and has less administrative cost associated with it but they would be liable. What I would suggest would be for Samdai to sell their cars to distributors since that is the...