International Marketing

With dramatic growth of once domestic companies into the global market, comes an increasingly higher amount of disputes between countries concerning matters of trade. To solve these matters, agreeing countries have turned to the process of International Dispute Resolution (Chapter 5, Slide 9). A prime example of this would be the current conflict between Japan and China. The dispute comes after a long standing argument over who has sovereignty of the Senkaku islands, also known as the Diaoyu islands, which are located in the East China Sea. Japan’s recent purchase of three of the islands has outraged the population of China and caused protest across the country.

The first step of international dispute resolution, informal resolution, cannot be completed due to the magnitude of the dispute and attitudes of both countries. With no informal resolution, both countries may now enter into an agreement through either mediation (a 3^rd-party led, nonbinding agreement between both countries to resolve the dispute), or arbitration (a decision rendered by a 3^rd-party in which both countries must agree to). As the dispute continues on with no informal agreement in sight, Japan and China seem to be facing arbitration in the International Court of Justice.

Kevin Clements and Ria Shibata, (2012, October).” Finding a solution to conflict over islands”.Deccan Herald. Accessed: October 8, 2012. http://www.deccanherald.com/ content/ 283970/ finding- solution-conflict-over-islands.html