Conflict Resolution Conflicts are inevitable. Conflicts exist in all walks of life. Conflicts develop among governments over differences in political or fiscal philosophies, between public and private sectors over spheres of influence, between sexes as to appropriate roles or lifestyles, and throughout the entire business arena. Private sector firms thrive on the basis of the contract. Contracts define the specifications for subassemblies, detail a myriad of financial arrangements and services, and determine the roles of buyers and sellers of all nature.
Contracts are essential within the country.
When a domestic firm engages in international business, the role of the contract becomes even more crucial. Because of cultural differences, the potential for misinterpretation of contractual terms heightens in the global arena. Simply defining the date of shipment of 5,000 tons of wheat on January 5 perhaps has a different interpretation and application in Chicago than it does in Kiev. When an international supplier of a part or a subassembly meets the conditions as outlined in the contract, there obviously is no conflict. When the subassemblies or the parts supplied by a vendor differ from that specified in a contract, a conflict emerges.