International Business Management

Year: 2015
Volume: 9
Issue: 6
Page No. 1234 - 1236

Internationalization of Malaysian SMEs and the Relevance of the UN Sale Convention

Authors : Anowar Zahid

Abstract: Aimed at 41% of contribution to GDP and employment growth of 62% by Small and Medium Enterprises (SMEs) by 2020, Malaysian government wants them to trade internationally. In this respect, SMEs have to face a strong legal barrier. They have to choose foreign law as applicable law for their contract. Because, they are not familiar with Foreign Law this creates uncertainties for them which may cost them money and time to educate themselves in that law, to understand its application, to negotiate and draft contracts and to have disputes if any, settled. The UN Convention on International Sale of Goods 1980 (CISG) has become a universal piece of law being ratified by a large number of states including all major trade partners of Malaysia except the UK which is presently considering its ratification. As such, this study argues for Malaysia to become a member of the convention which will place Malaysian traders on a level playing field with their counterparts in sale transactions internationally.

How to cite this article:

Anowar Zahid , 2015. Internationalization of Malaysian SMEs and the Relevance of the UN Sale Convention. International Business Management, 9: 1234-1236.

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