Today , we have invited a special guest , Prof . Yang . He will give us some advice on the legal aspects of international business . Your international legal advice is important to our business well being . Please give us some counsels on such issues as which laws govern the contract , what recourse is available for default or breach of contract by our clients or what to do if a dispute arises .   The significance of understanding the nuance and distinctions of foreign customs and business practices are a continual challenge for global entrepreneurs and trader . Despite many countries accession to TO membership , trade and investment frictions are still predominant among existing membership . However , these frictions will be better managed under the TO trade rules and the organization's dispute settlement mechanism .   In spite of this , international business contracts and arrangement must be precise , specific and all-inclusive to lessen misunderstanding , misconceptions and disagreements to the minimum 。   Problem and disputes occur mainly due to difference in the laws of countries involved . For this very reason , it is imperative to establish from the outset which law governs when disputes arise . The most fundamental principle of all international contracts is the applicable laws and regulations . Make sure that the arbitration clause in your business contract be all-inclusive .   How can we protect our patents and trade market abroad ?   Yes , it will be your utmost interest to protect your intellectual property such as your innovations , idea , designs and copyrights in your target country . 