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Addressing International Legal and Ethical Issues

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Addressing International Legal and Ethical Issues
There are many reasons that an American company would want to do business with a company outside of the U.S., including the cost of labor and the availability of materials. The downside of doing business outside of the U.S. is that there may not be a thorough understanding of expectations that both parties have of the other. International law is very broad and must also take into consideration any religious and diplomatic factors.
Resolving legal disputes in international transactions can be challenging because even though international courts have been established, the jurisdiction of these courts can be difficult to define. Each country has their own legal systems in place, and this will also be considered in resolving disputes.
Some of the practical considerations that need to be thought through when taking legal action against a foreign business partner based in another country include understanding any treaties that are in place, as well as the international organizations that could apply, such as the World Trade Organization, The International Monetary Fund, and the Organization for Economic Cooperation and Development. An understanding of local laws and customs is necessary. It is important to consider putting arbitration agreements in place beforehand.
Factors that could work against CadMex and their decision to grant sublicensing agreements would include the possibility that if a dispute arises, the country of Candore is not currently a signatory to any of the “major international trade conventions,” (Contemporary Business Law I , 2014). The Candorean government cannot be subject to the jurisdiction of the U.S. courts, and the Candorean courts are quite inexperienced in handling international disputes. There is also some suggestion of government interference in the Candorean court system, which adds another element of risk.
When local customs and laws conflict with the customs and laws of an organization operating abroad, the general notion known as ‘comity’ will “defer to and give effect to the laws and courts decisions of other nations.” (Melvin, 2011)
The issues addressed in this simulation are quite different than the issues that were addressed during week one. U.S. law is much easier to understand than international law and provides avenues for clarification if an issue is uncertain, such appellate courts and the Supreme Court. Resolving domestic issues is generally a matter of having a good contract in place, and this is not necessarily true in international business. As previously stated, understanding the entity that you are dealing with and having alternative dispute resolution processes in place can help an organization to avoid getting tangled up for years in an international dispute,

References
Contemporary Business Law I . (2014, May 24). Retrieved from Simulation - Addressing International Legal and Ethical Issues: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMSims/business_law1/intl_legal_ethical/business_law1_intl_legal_ethical_frame.html
Melvin, S. P. (2011). The Legal Environment of Business: A Managerial Approach: Theory to Practice. New York: McGraw-Hill.

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