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. Governments often play a much larger role in foreign business than Americans are accustomed to. The presence of often extensive government bureaucracies can make international negotiation processes more rigid that is usual in the American private sector.
Sovereign immunity can introduce legal complications into contracts.
State-controlled businesses may have different goals from private companies. Whereas private firms are usually primarily concerned with profits, state entities may be willing to sacrifice some profitability for social or political ends such as greater employment. Fourth, international ventures are vulnerable to sudden and drastic changes in their circumstances. Events such as war or revolution, changes in government, or currency devaluation have an impact on international businesses which is much greater than the impact that the usual domestic changes have on national businesses. International business negotiators also encounter very different ideologies.