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Case study






20. Planning to improve the economic and investment climate

 

Background information

 

In March, 2011 the British Ambassador in Kyiv was interviewed by Radio FM correspondent. The talk was about the British Days in Ukraine in the middle of March, when about 100 top businessmen were discussing positive issues as well as negative ones which are in the way the trade and investment climate. It's mentioned in Europe that Ukraine has a huge economic potential. They are constantly questioning those who are doing business in London if the business climate in Ukraine is really positive.

 

The Ambassador speaks about the macroeconomic stability and hopes that the Moratorium for Land will be Ukraine abolished. At the same time he says that the British wonder if Ukraine seriously wants to be on the international stage. Investments in Ukrainian agriculture are also a matter of great concern. Many British businessmen would like to be in Kyiv not to miss their opportunity for growth but are afraid of yet unsolved problems on the microeconomic level. They continue to wonder if the law rules and regulations will be adequate and working. A lot has been done and a lot is waiting to be done.

 

Problem

 

1. The Law on the Land was announced to come into force on March, 1 but the laws may only be written, not followed.

2. Decision-making is not a matter of weeks but months and years.

3. Small companies frequently need assistance in making the right contracts and in case of disputes are never sure the laws will work.

4. Having neither the legal nor financial resources small inexperienced companies often find it very difficult to do business in Ukraine.

 

Task

 

1. Before negotiating with the party to the contract choose the above listed problem and discuss it with your partners.

2. With your counterpart discuss the incident asking for compensation of your loss; bring the evidence of facts (while shipping the goods came spoiled).

3. With the whole class enact the sitting of the Arbitration Court with your problem on the agenda to determine justice.

4. Work out suggestions for improvement of trade relations between the two countries in conformity with the national and international laws.

 

Brainstorming session

 

1. Would you prefer to go to the court in the country of your business partner in case of a dispute? Give reasons, if not.

2. Which Arbitration centers would you like to address and why?

3. Do all the venues share the same arbitration rules?

4. What do clients look for from the arbitration service?

5. Think of the legal factors you should consider when entering the international market.

 

Note:

arbitrate means to hear and give an authoritative decision in a dispute

arbitration service is settling disputes between persons, firms and nations by an argument on both sides; to accept the findings of a third party

arbitration rules are well and wide-accepted authoritative judgments

sharing arbitration rules means the same reading of such rules

 


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