FREEDOM OF CONTRACT SHOULD NOT BE TAKEN FOR GRANTED
In many developing and socialist countries the host government frequently becomes a third party in the contract negotiations. Indeed the concept of renegotiation of contracts is commonly presumed and applied automatically in many developing and socialist countries while this is unheard of in the high-income countries.
This is the condition where a nation imposes control on activities of its citizens and corporations that occur in another nation-state. Specifically an international enterprise must do business in a nation-state in compliance with in the home country and when such laws affect activities in the home country, the home country will have control over the noncompliance activities . This condition creates conflict between nations, especially in the areas of antitrust , securities regulations, product liability, tax collections and export controls.