Businesses & Entrepreneurs
Welcome to our dedicated guides for micro, small, and medium-sized enterprises. Here you will find a concise overview of key aspects of international trade.
What do you trade:
Select either the goods or services option and we will provide you with our tailored guides. Our trade guides
are designed to inform you about international trade in ways that are simple and clear for new traders.
Goods
Goods are the tangible products that your business produces and may sell for profit. Examples include products that you can purchase from a store, market, online shop, or any other retailer.
I trade goodsServices
Services are amenities or benefits provided by your business to your consumers. They can only be delivered at a particular moment. For example postal services, banking, insurance, etc.
I trade services1What should I know for trading services?
Can I trade my service internationally?
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Services Trade
What Should I Know Before Exporting My Service? Several trends, including digital innovations, have resulted in the rapid growth in the export of services.
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Export Readiness Assessment Guide
Is my business export ready? One of the first questions to consider is why Export? What are the benefits? Research shows companies that export are more profitable, more productive and more innovative than those that do not. Research has shown that businesses are 11% more likely to survive if they export. The reasons for this range from spreading export risk amongst different country markets, to increasing turnover and improving innovation by developing specific services for specific overseas markets. Increased Sales – If you are selling well in your own home market, and your service is in demand, exporting is a way to develop new additional sales in other countries. If your services are in demand at home, then there is likely to be significant demand in foreign markets. Higher profits result from increased sales – If you can cover fixed costs through domestic operations or other types of financing, your export profits can grow very quickly. Economies of scale – You can benefit from the cost savings when you produce and sell more services. The benefits from the economies of scale can be very advantageous. Global competitiveness – The experience your company gains internationally will help keep you competitive in both your home market and in the global marketplace. Domestic competitiveness – Successful exporting companies are often more resilient to potential foreign competition. Reduced risk – If you can sell into several different countries, you are spreading the risk. If you diversify into international markets, you avoid depending on a single marketplace and suffering from any domestic instability. New knowledge & experience leads to innovation – The global marketplace abounds with new ideas, approaches and marketing techniques that could also prove successful in your home market. Adaptations to your service for example leads to new innovations and new service development. Trading internationally not only helps with all of the above, in addition trading globally can boost your company’s profile, reputation and credibility. Is my business export ready? We live in an increasingly interconnected world, which means that businesses of all sizes might receive enquiries from buyers in other countries. An export-ready business is one that has the capacity, resources and management to deliver a marketable service on a global scale at a competitive price. To determine if your business is ready to export internationally you can do your own export readiness assessment. Here is a check list of areas to consider Set clear and achievable export objectives. Develop an Export Plan. Understand your service USPs (unique selling points) in export markets. Formulate a realistic idea of what exporting entails and create a timetable for results. Understand what is required to succeed in the international marketplace. Confirm you have staff in place with the knowledge and skills to trade internationally or are willing to learn Is finance in place to help scale up for export? Undertake market research and decided on the best international target markets. These could be neighbour countries who are part of a trading bloc or developed countries with large populations and large purchasing power. Understand international marketing requirements. Research your competitors – both international competitors but also competitors based in the country which you want to export to. Considered any adaptations that may be required. Understand any cultural and language needs. Research your market entry strategy how, and to whom you will sell to in the export markets: Direct sales to a business or consumer / Intermediary representatives / licensing / foreign direct Investment through establishing a company in your target export market Understand destination country regulations, export and import documentation, customs requirements and procedures. You can also use export readiness assessment tools. A typical export readiness assessment will involve answering questions to determine a final score. This score is then used to help guide businesses through the necessary steps to become fully export ready. See the links for more information. Links to Supporting Information The Canadian Trade Commissioner Service Step-by-Step Guide to Exporting(tradecommissioner.gc.ca) Official Website of the International Trade Administration USA Exporter Assessments (trade.gov) Government of Canada Export quiz Are you ready? (international.gc.ca) Caribbean Export Development Agency 10 Steps to Exporting | Caribbean Export (carib-export.com) Kenya Export Promotion & Branding Agency BrandKE – Guide to Exporting
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Export Potential Guide
What is export potential and why is it important for my business? Export potential refers to the likelihood that a company’s service can be successfully sold abroad. Businesses usually identify the export potential of their services by analyzing: customer profiles. service modifications. transportation, shipping, and logistics. local representation in overseas markets. exporting services. business development capacities. Additional information like the export market’s economic outlook and current trade conditions may also be useful. Analysing these areas enables businesses to identify the strengths and weaknesses of their targeted overseas markets and to determine whether and why an export has the potential to succeed abroad. How do I determine my business’ export potential? There are two practical ways to assess the export potential of companies’ services in overseas markets. If you are already selling successfully in your domestic market, look for an overseas market with similar characteristics. Assess the unique features that make your service different from those found abroad and therefore desirable in a foreign market. How do I select my target markets? Online trade statistics are a useful tool, as they provide an overview of markets in target countries. They can show if target countries are already importing the services that your company is intending to export. They also indicate supply levels in target countries. One resource for identifying target markets is the European Commission’s Guide for export of services, (see links to supporting information). How do I find potential buyers? The next step after identifying a target market is to find and connect with potential trade partners and business contacts. For example: Trade fairs are a great place to find business partners, as this is where companies from across the world can meet to explore business opportunities, find potential markets, and use contacts or word of mouth. Events hosted by business support organizations for domestic companies, with the aim of helping local companies explore export opportunities, is another option. There are also an increasing number of online platforms that connect buyers and sellers. In addition to well-known global marketplaces like Clickworker, Amazon Mechanical Turk or Appen, a simple internet search is another way to identify specialized online marketplaces (see the Trad4MSMEs guide on selling abroad online). Links to Supporting Information United States International Trade Administration’s (U.S. ITA) How to Analyze a Product or Service’s Export Potential The Government of Canada’s Step-by-Step Guide to Exporting Getting started: assessing your export potential The U.S. ITA export guide for small businesses Guide_To_Exporting The European Commission’s Guide for export of services. Guide for export of services | Access2Markets The U.S. ITA guide on how to find buyers and partners. Find Buyers and Partners Trade4MSMEs guide Selling Abroad Online IMF (International Monetary Fund) World Economic Outlook World Economic Outlook Google’s Market Finder training Find Global Business Opportunities – Market Finder by Google & (110) Discover International Growth Opportunities with Market Finder by Google – YouTube
Is there a trade agreement or preference scheme in place between my country and my potential destination market?
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Trade Agreements Guide
What is a regional trade agreement? A regional trade agreement (RTA) is a treaty or contractual agreement that two or more governments sign to grant each other preferential market access and set rules to govern their trade relations. Through trade agreements, governments agree on a range of obligations. These can include improved market opportunities for services and may also include processes and regulations for trade in services and investment, among other commitments. The General Agreement on Trade in Services (GATS) The creation of the GATS was one of the landmark achievements of the World Trade Organization WTO. It includes the following key concepts: MFN (Most Favored Nation) treatment: Under Article II of the GATS, WTO (World Trade Organization) Members are held to extend immediately and unconditionally to services or services suppliers of all other members “treatment no less favourable than that accorded to like services and services suppliers of any other country” Transparency: WTO Members are required to publish all measures and respond to other member countries requests for information, through national enquiry points. Market access: Commitment from members to negotiate on access to markets. There may be some limitations and Article XVI(2) has details. National treatment: WTO Members are not allowed to discriminate in favor of their indigenous services or suppliers. The GATS agreement was structured to encourage and increase the participation of developing countries in services trade. The GATS does allow a waiver to allow preferential treatment for exporters of services from least-developed countries (LDCs). How can trade agreements affect my business? Trade in services: Businesses can benefit from preferential market access terms for supplying their services in the markets where a RTA is in force. Intellectual property protection and enforcement: Trade agreements increasingly include detailed chapters on intellectual property protection and enforcement. For more information, see theTrade4MSME guide on Intellectual Property. Investment: A RTA can provide favorable circumstances enabling companies to set up a commercial business presence in a foreign market. Investment rules in RTAs (Regional Trade Agreements) or international investment agreements (IIAs) can in some cases protect foreign investments in host countries. More information on international investment policy can be found at the United Nations Conference on Trade and Development (UNCTAD) various tools can help assess the benefits of RTAs and IIAs. What are the different types of RTAs? RTAs are signed on a bilateral (an agreement between two governments) or regional basis (agreements with more than two governments). Governments signing these agreements benefit in terms of preferential market access. They also often contain rules that aim to facilitate trade in services. How do I know if my service benefits from preferential treatment under an RTA? The World Trade Organization (WTO) website has more information on regional trade agreements. Trade agencies, industry associations, and chambers of commerce may also have information on how you can benefit from regional trade agreements. Links to Supporting Information WTO WTO | Services – The GATS: objectives, coverage and disciplines Trade in services. WTO directdoc Directory of country contact points for trade in services. Trade4MSME guide Intellectual Property Considerations UNCTAD Home | UNCTAD Investment Policy Hub Investment information UNCTAD International Investment Agreements Navigator | UNCTAD Investment Policy Hub information on IIAs WTO WTO | Regional Trade Agreements – scope of RTAs Information on regional trade agreements RTAs WTO WTO | Regional trade agreements Regional Trade Agreement Database WTO (16) WTO Database on RTAs Tutorial series – Main functionalities – – YouTube Tutorial on how to use the RTA database I-TIP (Integrated Trade Intelligence Portal) Services World Trade Organization and the World Bank. WTO | I-TIP Services A set of linked databases that provides information on provisions for trade in services within regional trade agreements (RTA). IOE&IT Export essentials: how to make the most of preferential tariffs – The Institute of Export and International Trade
How can I protect my intellectual property rights?
Who should I talk to if I have a problem or question about the conditions of services supply?
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Services Contact Points
What are services contact points? The World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS) requires WTO Members, set up contact points who can make it easier for services suppliers from developing countries to obtain the information they need. The information provided by these contact points concerns commercial and technical aspects of the supply of services in the domestic market; registration, recognition, and obtaining of professional qualifications; and the availability of services technology. Where can I find other resources on this? Services conditions are often specific to a particular location and industry. Places to start when looking for more information on exporting your service include professional associations for your business, local chambers of commerce, or government trade bodies both domestically and in your target market. Links to Supporting Information WTO contact points WTO directory of contact points for trade in services directdoc.aspx (wto.org)
2What is trade Finance and how can I access it?
What are the different types of trade finance options?
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Trade Finance Introduction – for Businesses
What is trade finance and why may I need it? There are many definitions of trade finance, varying by organization and purpose. Trade finance...
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Supply Chain Finance
What is Supply Chain Finance (SCF)? Supply Chain Finance (SCF) is a cash flow solution that businesses can adopt to help free up working capital stuck in global supply chains.
Who can help me finance my trade activities?
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Trade Finance Providers
What kind of trade finance lending do I need? Small businesses and new exporters can often find it difficult to access credit and finance, there are however lots of different resources MSMEs (Micro and Small Medium Enterprises) can explore. Who are the Trade Finance Lenders? There are several types of trade finance lenders to consider. Below are brief descriptions of some of the most common: Corporate and Commercial Banks: These banks can provide a range of trade credit options to businesses, including accepting letters of credit or bills of exchange, or facilitating documentary collection (see Trade4MSMEs guide on Trade Finance). Corporate banks typically service very large transactions, whereas commercial banks are more accessible to smaller traders. Alternative Finance Providers: These are non-bank lenders. These can include private investment, crowd-funding options, or other fintech that allows users to access financial services other than through a traditional bank. Alternative, or non-bank, finance can sometimes be more accessible to smaller traders because they do not face the same regulations as traditional banks, which can make traditional banks unwilling to spend the resources required to enable smaller transactions. Alternative finance providers based on new technologies may also be able to look at different types of collateral, which can open new areas of funding for businesses including Supply Chain Finance (SCF) (see Trade4MSMEs guide on Supply Chain Finance). Development Finance Institutions (DFIs): These provide trade finance help to businesses to promote economic development. They might be funded by national governments and tend to be country or region-specific. DFIs usually operate as joint ventures in emerging markets and can provide insurance and guarantees against political and socio-economic risk to encourage investment. Like commercial banks, they may also provide standby letters of credit, invoice discounting facilities, and project finance from mid-term to long-term projects. Although DFIs may have an overall objective of increasing small business finance, they often do not lend directly to businesses. Export Credit Agencies (ECAs): This financing is used to assist exporters through loans, loan guarantees, and insurance. The transactions supported by ECAs are capital intensive, such as machinery for large-scale projects. They have long-term financing maturities with attractive conditions, as they are usually provided through government financing facilities. ECAs may have minimum requirements, such as the size of a transaction, which could exclude certain smaller traders. What do I need to access this finance? Lenders have different requirements and criteria to access their financing options based on the level of risk, interest rate, and repayment conditions. If you are interested in accessing trade finance, first understand your financial needs and then reach out to your targeted lenders. Links to Supporting Information International Trade Centre (ITC) How to Access Trade Finance A guide for small exporters. Trade4MSMEs guide Trade Finance Introduction Trade4MSMEs guide Supply Chain Finance United Nations OHCHR | Development finance institutions OECD (Organization for Economic Cooperation and Development) Development finance institutions and private sector development – OECD The ITC’s SME (Small and Medium Enterprises) Trade Academy Export Finance and Payments Course Online training course Trade Finance Global Trade Finance Explained, an SME Guide for Importers and Exporters, is a publication co-authored by Trade Finance Global, the ITC, the Federation of Small Businesses (FSB), the Institute of Export & International Trade (IOE&IT), the British Exporters Association (BExA), the Forum of Private Business (FPB), and the International Finance Corporation (IFC).
What do I need to know about exchange rates to make an international transaction?
3How can I make the best use of digital tools to trade?
How can I benefit from e-commerce?
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Selling Abroad Online
Why might I want to sell online? Selling online offers a competitive edge to small businesses seeking to expand into new markets. It is often a lower cost, lower risk business model for small businesses starting out in international trade. Retail e-commerce sales worldwide have seen a rapid increase in recent years. E-commerce can be a quick and effective way to attract more customers. By selling online, it is possible for you to reach a new global customer base with lower overhead than if sales were only made through physical stores. How can I sell online? From online marketplaces and platforms to social media and e-commerce websites, there are a wide range of digital sales options in addition to traditional or physical stores. Some of the most common ways to sell online are listed below. Marketplaces: These could be general or specialized by market sector (for example textiles, or electronics). General marketplaces are suitable to sell products or services with mass appeal when branding is not a business priority. In contrast, specialized marketplaces enable businesses to position their brands, find market niches, and offer customized value propositions to clients. Listing websites: These are useful for MSMEs with business models that focus on buying and re-selling common items. They are also appealing for businesses that sell by offering competitive prices or promoting additional features of goods and services advertised on the web. Social media: Social media platforms enable businesses to create customized webpages linked to online e-commerce sites and marketplaces with mass reach. Your own online webshop: Building and maintaining your own online shop can be effective, you can engage a commercial company /website builder to do this for you. This is the quickest, easiest route to creating a sleek, professional online presence for your ecommerce business. Many companies also offer competitively priced template sites that you customize. Or, if you have the knowledge and skill, you can code your own. What should I consider before selling online? A starting point is to plan a sound e-commerce sales strategy and get customer feedback on products and services. Either through social media or direct contact channels, you can reach out directly to potential customers to understand their needs and find target markets domestically and/or internationally. Understanding your customer base can help you customize products and services and identify market entry options. Other things to consider include payment methods, as well as the shipping and returns policies that may be best suited for your customers. These may vary depending on the market. You should also research market access requirements that may affect your products and services(see the Trade4MSMEs guides on services export potential and services contact points)Services Contact Points have more information. Many businesses can benefit from online communities and training courses about online sales methods and e-commerce strategies. Links to Supporting Information WTO (World Trade Organization) regional initiatives on e-commerce WTO | Electronic commerce UNCTAD Global E-Commerce Jumps to $26.7 Trillion, Covid-19 Boosts Online Retail Sales | UNCTAD Statista Global retail e-commerce sales 2026 | Statista International Trade Centre (ITC) ecomConnect: ecomConnect | E-commerce Community Engagement Platform for Everyone Is an e-commerce online community Trade4MSME Guide Export Potential Guide Trade4MSME guide Services Contact Points ITC Online training courses ITC SME Trade Academy – Catalogue (intracen.org) ITC ITC SME Trade Academy – Summary of Introduction to E-commerce (intracen.org) ITC ITC SME Trade Academy – Summary of Using Virtual Marketplaces for your E-commerce Initiative (intracen.org) ITC ITC SME Trade Academy – Summary of Creating Quality E-commerce Content (intracen.org) ITC ITC SME Trade Academy – Summary of E-Commerce for your B2B Business (intracen.org) Google Free Online Marketing & Career Courses – Google Digital Garage – Google Digital Garage (learndigital.withgoogle.com) Google Skillshop tutorials on using Google Ads Google Ads : Google (exceedlms.com) and Get a business online – Google Digital Garage (learndigital.withgoogle.com) PayPal How to Sell Internationally | PayPal US
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Assessing E-Commerce Readiness
How can an e-commerce readiness assessment support my business? Selling online has advantages over selling in traditional shops and stores. Businesses can reach customers worldwide and enter new markets quickly and easily. Geography no longer creates the same physical barriers to trade. It is always best to check that you have everything in place before you start. An E-commerce readiness assessment can help you evaluate what stage you are at. What is an e-commerce readiness assessment? An E-commerce readiness assessment is the starting point to help any businesses understand what is needed to design an online sales strategy. An e-commerce readiness assessment is a tool that evaluates the capabilities needed to set up and run a successful online business. It will help you evaluate strengths, as well as identifying areas that need improving. It shows that by investing in market research, online payment systems, developing good fulfillment and logistics, and creating great customer service experiences, will help build a more successful business. What is the structure of an e-commerce readiness assessment? The International Trade Centre ITC has developed a quick and easy short quiz to check your businesses readiness to start online sales. It will look at the following five sections: E-commerce planning: This involves getting you to think about your product and services value proposition, ask yourself why customers should buy your products. It gets you to think about your ideal target customers. Confirm if your products or services comply with regulations in your target markets. Online presence: This involves identifying whether you are going to run your own e-commerce website, or if you will list products and services in marketplaces. Digital marketing: This involves looking at the extent to which businesses use digital marketing to promote their online sales and monitor digital goals and key performance indicators (KPIs). Shipping and inventory: This involves checking that your inventory, fulfillment and shipping options meet the expectations of your customers. Confirming that you can manage the customs import duties, taxes and other charges needed is essential. Customer service: This involves understanding what good customer service is and that your business is supplying the right information about products and services. Coupled with the ability to communicate, interact and build trusted relationships with your customers and clients, will ensure your business will thrive. Links to Supporting Information ITC International Trade Centre ITC ecomConnect – Readiness an e-commerce readiness assessment quiz ITC International Trade Centre How to Start Your First E-commerce Business | ecomConnect ITC ITC ecomConnect – Calculator & Video tutorials from ecomConnect Strive Community’s Ecommerce Training Toolkit ecomConnect IOE&IT Export essentials: How to make the most of ecommerce platforms – The Institute of Export and International Trade
What digital tools and approaches can help my business?
How do I protect my business from cyber attacks?
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The Importance of Cybersecurity
What is cybersecurity? Introducing Cybersecurity into your organization is a way individuals and businesses reduce the risk of cyber-attacks. It is also known as information technology security or electronic information security. Using technology and digital platforms for commercial activities exposes companies to cybercrime like phishing, malware, or data and identity theft. Cybersecurity embodies a set of systems, processes, and actions and its core function is to protect businesses from digital attacks. We all use smartphones, laptops, tablets and computers, and we access multiple services online at home and at work and we need to protect them from theft or damage. To reduce these cyber threats, learn more about how to protect your organization’s data, assets, networks, programs and your reputation from digital attacks. Introducing cybersecurity can protect your data and systems. Why does cyber security matter for my business? We all live in an increasingly interconnected world, and this has had many positive effects enabling businesses to collect and share more information, reach new customers and innovate. It has also though, led to a rise of criminal activities that profit from stealing customer data and spying on business practices. Small businesses can often be victims of cyber-attacks, putting their assets, data, information, and technology equipment at risk. Investing in sound cybersecurity systems can prevent you from suffering financial losses and corporate reputation damage. How cyber threats could affect business? Some examples of cyber threats that may affect your business. Phishing: This is a social engineering tactic that lures individuals into providing sensitive data by offering fake rewards. Through this tactic, criminals often target personally identifiable information, banking and credit card details, and passwords. Malware: This consists of malicious software that comes from website downloads, spam emails, and connection to other machines or devices. Hackers use malware to gain access to networks and steal or destroy data on computers. Ransomware: This is a form of malware that encrypts business files, making them no longer accessible. Criminals use it to demand a ransom in exchange for unlocking the data targeted. Weak passwords: Passwords are weak when humans or machines can easily identify them. Criminals that correctly identify passwords have easy access to business accounts that store confidential and sensitive data. Insider threats: These threats are performed by current or former employees, business contractors or other associates who seek to access critical business data for illicit purposes. How can I protect my business against cyber risks? Protecting your business from cyber risks can enable you to counteract criminal activity and keep pace with emerging trends in data privacy. You can start planning cybersecurity strategies by identifying systems, data, and users that are essential for your business operations. This mapping exercise will highlight vulnerability points that can be the subject of your cybersecurity goals and strategies, as well as help you to develop a cybersecurity plan at your business. Links to Supporting Information Cyber Research Institute Roadmap A guide to being cyber ready. Cyber Research Institute Cyber Readiness Program – Cybersecurity Awareness Workforce Training This program guides SMEs (Small and Medium Enterprises) to become cyber against cyber threats. GCA (Global Cyber Alliance) Cybersecurity Training Small Business and Know What You Have – GCA Cybersecurity Toolkit | Tools and Resources to Improve Your Cyber Defenses The Global Cyber Alliance (GCA) offers a cybersecurity toolkit designed for small businesses and online training courses. US Small Business Administration Strengthen your cybersecurity The United Kingdom’s National Cyber Security Centre and Small & medium sized organisations – NCSC.GOV.UK provides training and certification. Government of Canada Cyber Secure Canada offers an SME-targeted certification scheme.
4What happens when there is a trade disagreement?
What do I do when my trade transaction doesn’t go as planned?
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Dispute Settlement
What happens if there is a breach of commercial contract? If your business trades with a company based in another country or customs territory, this is classed as ‘cross-border trade’ and effectively it means, in legal terms, that the other party is not necessarily subject to the jurisdiction of courts where you are based. It is important that you get the right commercial agreements in place, and confirm the law applicable to the contract, and a dispute resolution mechanism, at the very start of trading internationally. Although you hope it will never happen, should a dispute arise, it is always better if you can have it resolved in your local court, with your own lawyers and in your own language. If this is not possible and the dispute involves an overseas jurisdiction, this can complicate things and you would need to obtain legal advice familiar with commercial law in both country’s jurisdictions. Points to consider when drawing up a contract: Look to minimise your risk with fair and transparent contracts and terms and conditions. Appoint a legal professional / specialist international trade lawyer to help guide you. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Don’t accept “standard terms” with which you cannot comply. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Be clear on the extent of your potential liabilities. It would usually be sensible to try and agree a cap on liability – in many cases this comprises a multiple of the contract value. Deliver on time to the terms of the contract When a breach of an international contract occurs, the parties encounter issues such as: What type of case it is. Where the case will be decided. Which law will be used to decide It is also important to agree on a dispute resolution mechanism at the start, choices can include: Judicial Proceedings Alternative Dispute Resolution ADR mechanisms Arbitration Mediation While choosing the mode of resolution, another factor to consider is where and whether the ensuing judgment or arbitral award will be recognized and enforced. It would not be helpful if, for example, the judgment or the arbitral award was in your favour but cannot be recognised and/or enforced in another state where your other contractual party has assets. The law applicable to the contract will be applied to settle the dispute arising from the negotiation, conclusion, performance, interpretation, or execution of the contractual terms. Links to Supporting Information The International Trade Centre ITC Model Contracts for Small Firms | ITC Model contracts are available free of charge WIPO (World Intellectual Property Organization) Alternative Dispute Resolution Alternative Dispute Resolution (wipo.int) New York Convention for arbitral awards 1958 New York Convention The UN (UNCITRAL) United Nations Commission on International Trade Law and Online Dispute Resolution: On-line Resources | United Nations Commission On International Trade Law
What should I do if I think someone has infringed on my intellectual property?