Exam 30: International Business Transactions

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A portfolio investment is essentially a passive investment,normally in the form of government or corporate bonds or listed securities.

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Unlike domestic contracts,international contracts are more likely to involve special problems,such as

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Define and explain the term counter-trade.

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Use this fact situation to answer the related questions that follow. A,based in Ontario,enters into a contract with B,in Geneva,Switzerland,whereby B will manufacture and supply to A a certain quantity of watches.The negotiations first took place by faxes between Ontario and Geneva and were then held in person in Geneva.Most of the people connected with the negotiations and the contract live in Geneva and B's manufacturing plant is there.B manufactures the watches and then delivers them to A in Ontario.However,A refuses to accept them because they do not meet the specifications agreed on.There is a marked absence of the actual specifications in the contract,and it also does not contain a jurisdiction clause in the event of a dispute.Having rejected the delivered goods,A now goes out and buys the watches from a German manufacturer at twice the cost of the Swiss watches. In this case,under Ontario law,A can institute an action in Ontario against B because

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Explain the doctrine of forum non conveniens.

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Countertrade

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