This thesis seeks to clarify the area of legal and cultural challenges between Danish companies and companies placed in the Middle Eastern region specifically Lebanon and Oman. Initially a definition of the concept of culture and the influence of religion in the Middle East is explored, in order to fully understand the theorist Geert Hofstedes’s cultural dimensions; Power distance and Collectivism and how these can be interpreted. The interpretation of the two cultural dimensions, in this paper, gives reason to focus on the core elements, Bargaining and Wasta – Networks, in a Middle Eastern negotiation process. The analysis focuses on six selected categories, which highlight the important economic and legal elements, a Danish company should pay attention to at the award of a contract, when considering the above dimensions and elements. The legal aspects focus on the Danish private international law, The Rome Convention and CISG. The Middle Eastern countries have tendencies, which indicate high power distance and a collectivistic society. The surveys listed in the paper, confirm that the above mentioned are central areas to be focused on and that these areas are processed through the creation of trust and good networks. Trust becomes a great concept when a dispute in delay of payment arises; in this context avoiding a lawsuit is necessary, to sustain trust. In this context the respondents contributed to the understanding of the general importance of a powerful network, wasta. During negotiations bargaining occurs frequently and therefore the Danish company should have prior knowledge, when deciding the prices of their products/services. The use of empirical data and theory concludes that a solid contract is an extremely important element to avoid future disputes. Based on the results in this thesis the preferred benchmark for a contract for engineering services is FIDIC's standard terms and conditions, as it is balanced, neutral and can be customized as needed. In addition to FIDIC, there must be agreed upon a venue and applicable law. The thesis also concludes that Arbitration is preferred, when a dispute arises in international business since it by a clause to the contract may contribute to a neutral forum, which means the Arbitration takes place in a country where neither party belongs.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||82|