Distribution Risk Analysis West Africa
TMGT
As a manager in United States distributing soft drinks, asked to prepare risk analyses for distribution in country on west coast of Africa, there are many risks to be outline and discuss considered.
Informal arrangements often lead to misinterpretations, so care should be taken with drafting Distribution agreements. The process of crafting and negotiating a contract safeguards agreement on terms of the transaction. Equally important, where something does go wrong, a written agreement will usually help. It is crucial to settle which country’s laws will regulate. Moreover, risks and dispute resolution options should be identified within the agreement.
Important risks to consider in the drafting of a distribution agreement include territorial constraints, stability of country, influence of culture, religion, politics, conflict of laws, and enforcement procedures. Identifying risks means asking certain questions. Which laws govern, and to what extent are geographic restrictions applicable? Should you be bound by international law? Is the relationship between parties worth keeping? Ultimately, is it worth your risk?
Liberia, Nigeria, Benin, Togo, Ghana, Cote D’Ivoire, Sierra Leone, guinea, guinea Bissau, the Gambia, and Senegal are 12 of the 15 countries in the Economic Community of West African States (ECOWAS) bordering the western coast of Africa. Take into account African political realities and common commercial policy towards third parties. ECOWAS countries are politically unstable, as a large proportion of this region is highly underdeveloped, with unfavorable economic conditions such as low income, high poverty, and unemployment, to mention just a few. Proliferation and perpetuation of new political orders flourished simultaneously, with the resurgence of political coups, civil wars, power struggle, and ethnic and communal clashes. The likelihood of heightened violence on the West African coast, employs the ECOWAS as one of the more precarious regions
As a manager in United States distributing soft drinks, asked to prepare risk analyses for distribution in country on west coast of Africa, there are many risks to be outline and discuss considered.
Informal arrangements often lead to misinterpretations, so care should be taken with drafting Distribution agreements. The process of crafting and negotiating a contract safeguards agreement on terms of the transaction. Equally important, where something does go wrong, a written agreement will usually help. It is crucial to settle which country’s laws will regulate. Moreover, risks and dispute resolution options should be identified within the agreement.
Important risks to consider in the drafting of a distribution agreement include territorial constraints, stability of country, influence of culture, religion, politics, conflict of laws, and enforcement procedures. Identifying risks means asking certain questions. Which laws govern, and to what extent are geographic restrictions applicable? Should you be bound by international law? Is the relationship between parties worth keeping? Ultimately, is it worth your risk?
Liberia, Nigeria, Benin, Togo, Ghana, Cote D’Ivoire, Sierra Leone, guinea, guinea Bissau, the Gambia, and Senegal are 12 of the 15 countries in the Economic Community of West African States (ECOWAS) bordering the western coast of Africa. Take into account African political realities and common commercial policy towards third parties. ECOWAS countries are politically unstable, as a large proportion of this region is highly underdeveloped, with unfavorable economic conditions such as low income, high poverty, and unemployment, to mention just a few. Proliferation and perpetuation of new political orders flourished simultaneously, with the resurgence of political coups, civil wars, power struggle, and ethnic and communal clashes. The likelihood of heightened violence on the West African coast, employs the ECOWAS as one of the more precarious regions
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