Often times, a company based in one country seeks out opportunities to do business with other companies based in other foreign nations. When a company decides to go this route, a myriad of potential problems must be addressed in initial contracts before further action takes place. The biggest issue with international business is legal jurisdiction. The two organizations must mutually agree upon which country will have jurisdiction and which local and international laws will be applied. Companies must also be mindful of the current political situation in the nation they intend to do business with. Often times, foreign countries operate on vastly different policies for their citizens and workers. These types of situations may often lead to civil unrest within that country, which in turn could have an extremely negative effect on business. These are the types of issues a company must consider before entering into a business agreement. Having these potential problems outlined in the contract, help provide guidance in the event any of these issues should arise. Depending on the type of business, the two companies may likely operate under some of the general international laws of business. When business issues conflict with the customs and laws of the local nation, the jurisdiction that was agreed upon in the contract has authority. In the example of CadMex, the company was faced with several difficult decisions. The country in which their partner business resided,