When a Dispute Occurs in International Commerce, What Questions Typically

question 20

Essay

When a dispute occurs in international commerce, what questions typically need to be answered to resolve the problem? Why do some firms often avoid litigation? What alternatives to litigation are available?

---

Definitions:

Reorder Point

The level of inventory which triggers an action to replenish that particular inventory stock.

Quantity Discount

A reduced price for items purchased in large quantities.

Order Quantity

The amount of an item that is ordered from a supplier to replenish inventory or to fulfill customer demand.

Inventory Carrying Cost Rate

The total cost associated with holding inventory over a given period, often expressed as a percentage of the inventory value, including costs related to storage, insurance, taxes, and depreciation.