Addressing International Legal and Ethical Issues Simulation Summary

Addressing International Legal and Ethical Issues Simulation Summary What are the issues involved in resolving legal disputes in international transactions? When the United States (U. S. ) entering into an agreement with another country it is important that the U. S. Company confirms that the contract is legally enforceable. With international business transactions each country needs to be aware of any international laws and legislations. Both parties should also be aware of changes that are made to international laws and regulations. What are some practical considerations of taking legal action against a foreign business partner based in another country? The consideration a business needs to know are the laws of the country they are doing business in and the country could deny further business transactions if possible legal action is taken. A United States (U. S. ) business has to remember, a law in the U. S. is not the same law in another country. If a law is broken, it may not be implemented in another country as it is in the U. S. A contract is a binding agreement, but it is only binding if the law agrees with it. If there is a good relationship with the country, then the business should be able to trust that the country will make good on it. What factors could work against CadMex's decision to grant sublicensing agreements? A business runs into difficulties with sublicensing agreement when they choose to make several of them, growing a business chance of having lawsuits created against them. Presume a business unnoticed including the sub-paragraphs within the contract which would relieve them of any legal issue because of the agreement, the company could be completely responsible for any financial damages. When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why There is no clarification is required when local laws and custom, conflict with laws of companies operating aboard. When a United Stated (U. S. ) business had decided to do business those laws and customs would win out. In most situations, the U. S. based business would have to sign a contract stating they would conduct business in accordance to the law and customs of that country (Melvin, 2011). How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently? Every time two businesses decide to enter into a contract, each wants their own country law to apply, so their law would protect them. When a business does business with in their own country they know the laws that apply and protect them. The opposite happens when a business decides to do business outside of their own country. They are not as accustomed with the laws of other countries. For companies to protect themselves, they should hire a lawyer who is familiar with the country they are going to do business in. The lawyer of that country can read the contracts and ensure both parties have proper protection (Melvin, 2011).