Addressing International Legal and Ethical Issues Simulation Summary Essay

Conducting international business can be a profitable endeavor but requires a lot of tact and strategy. In international business legal issues may arise but must be resolved in order to retain the relationship. This problem includes but is not limited to changes in legislation, clashes of interest, ethical dilemmas, cultural and ethical differences. When entering into an agreement with another country legal agreements must be drafted to protect the company interest. Consideration must be made of the countries culture and ethical differences. The process of sublicensing can be positive for CadMex. However, the process consumes an incredible amount of time and money. Sublicensing could also violate the non-disclosure agreement. Local customs in laws can conflict with in organizations customs in laws when operating abroad. When this occurs the laws that were specified in the contract should prevail unless there is a CIGS (contracts for the international sale of goods) which is been used by default. See more: Experiment on polytropic process Essay When issues arise alternative dispute resolution (ADR) can be used it is a means for resolving disputes between parties outside of the judicial process using one of four techniques mediation, arbitration, negotiation, or collaborative law. Mediation is the use of a neutral party to resolve the dispute between two or more parties. Arbitration is the resolving of a dispute between parties through the use of an agreed upon party. Negotiation is when the parties have a mutual discussion and arrangement of terms of an agreement. Domestic issues are usually easier to resolve then international issues. Domestic issues do not require the same strategy or consideration does international issues. Domestically the laws are the same but international laws vary from country to country. Contract terms must be defined very explicitly. Sensitivity must be developed and exercised to accommodate local cultures and customs. Laws must also be clearly defined as you leaving as they are part of what can lead your business to success or failure. Addressing International Legal and Ethical Issues Simulation Summary Essay * What are the issues involved in resolving legal disputes in international transactions? All contracts that deal with outside countries must be able to have some type of legal implementation (Melvin, 2011). There has to be some type of enforcement on the contract or it may never be resolved. * What are some practical considerations of taking legal action against a foreign business partner based in another country? According to (Melvin 2011); a country can stop all transactions from that business if they file lawsuit on that country. The law of other countries must be taken into consideration when dealing in foreign business. The United States laws are only upheld within the United States borders and may not be respected in a foreign country. Contracts are only binding if they have the backing of the law in whatever county or countries they are made in. See more: Strategic Management Process Essay * What factors could work against CadMex’s decision to grant sublicensing agreements? Sublicensing agreements comes into play when the organization has too many of them and does not fully incorporate sub-paragraphs. This leaves the organization up for lawsuits if any of the contracted workers do something wrong and also makes the main organization fully liable for any damages. Even workers within the sublicensing can sue a business formed within the sublicensing agreement (Melvin, 2011). * When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. Situations should be handles on a one on one basis. Sometimes special considerations need to be taken to accommodate certain employees due to religious beliefs. In such cases the local laws should prevail in order to prevent a costly and drawn out lawsuit with employee unions. Negotiating and coming to an accord amongst the two would be the best option as well as revising company policy to cater to local customs and laws without losing essentials to company policy. * 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? The issues in the simulation are faced in the United Stated everyday by many corporations. The Human resource department of each company is designed to handle such problems when and should they arise. Domestic issues are resolved easier than international issues because they are resolved according to the law of the United States. However when in international waters a corporation (even if it is American) must adhere to the laws of the country it is conducting business in. Litigation and alternative dispute resolution options will apply.