Changed Circumstances at Cosco
Understood the case and then answer the questions separately: Management Application: Changed Circumstances at Cosco 1. This example illustrates that contracts can have different meanings to different parties (or countries) to an agreement. Contractual meanings are embedded in societal cultures and not easily changed. It is easy to take sides in this dispute but, in fact, both sides are trying to secure stability and an ability to plan; they just approach this challenge differently. From a managerial standpoint, what are the advantages and disadvantages of each approach? 2. In view of this, if your European firm had an existing contract with Cosco and both sides wanted to extend the contract, what would you recommend to ensure that your firm was not surprised again with unexpected changes in the future? 3. What recourse do Coscos partners or customers have in this dispute? 4. How can managers build trust with partners who live and work under different assumptions about what constitutes trust?