These laws and policies may be inconsistent, or even directly opposed. For example, in the early 1980s U.S. companies operating in Europe were caught between the American prohibition on sales to the Soviets for their Trans-Siberian pipeline, and European nations' demands that these companies abide by their supply contracts. International business agreements must include measures to address these differences. Such measures typically include arbitration clauses, specification of the governing laws, and tax havens. A second factor unique to international business is the presence of different currencies.
Different currencies give rise to two problems.
Since the relative value of different currencies varies over time, the actual value of the prices or payments set by contract may vary, and result in unexpected losses or gains. Another problem is that each government generally seeks to control the flow of domestic and foreign currencies across their national boundaries. And so business deals will often depend upon the willingness of governments to make currency available. Unexpected changes in such governmental currency policies can have dramatic effects on international business deals. A third element common to international business negotiations is the participation of governmental authorities.