Since contracting parties should anticipate the possibility of disputes, they should include provisions controlling which country's law should apply, which country's courts have jurisdiction and whether the parties agree to submit their disputes to arbitration. Many international contracts begin as non-binding letters of intent. The final contract should provide which language will control the transaction and which currency will govern it. Often, parties to international sales contracts stipulate to binding arbitration under one set of standard arbitration rules or another. The International Chamber of Commerce provides a good framework for dispute resolution.
Manufacturers typically sell goods overseas through agents and distributors.
An agent is usually commission-based, and works essentially as a broker. The manufacturer sets prices and terms. A distributor, on the other hand, actually buys the goods from the manufacturer, and can therefore set its own prices and terms. The manufacturer has fewer headaches when selling to a distributor. Even so, the manufacturer still has a strong interest in what other goods the distributor sells.