...Addressing International Legal and Ethical Issues Simulation Summary LAW/421 March 26, 2013 Addressing International Legal and Ethical Issues Simulation Summary The simulation “Addressing International Legal and Ethical Issues” discusses the contract between CadMex, a United States pharmaceutical company based in Tampa, Florida with Gentura, a biotechnology company based in the small, developing country of Candore. Explicitly defining contract terms is imperative. Even with international courts, the interpretation and enforcement of international law is sometimes based on expectations of reciprocal behavior rather than legal sanctions (Melvin, 2011). Factors in the resolution of legal problems in international transactions include political situations, international laws, cultural issues, contractual issues, local laws of the other country, and the forum selection clause. There are many considerations when legal action is taken against a partner in business in another country. One must look at the government of the country and if the country is a member of the World Trade Organization (WTO). Candore is a dictatorship, which would have an effect on legal proceeding in that country. The political and economic climate should be considered along with religious and cultural issues. Another consideration is to have an attorney from the other country to counsel and interpret their laws. The contract must specify the laws that will govern (American, local, or popular international)...
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...International Legal and Ethical Issues LAW/421 International Legal and Ethical Issues Addressing international and legal issues can bring about large implications for both companies. It is advisable to have a distinct contract drawn up to protect the rights of the companies especially when seeking technology licensing. Different legal and ethical issues arise when setting up international partnership. One should take into consideration the customs of the business they are trying to complete transactions with. As Melvin (2011) states: International law has traditionally been defined in very broad terms and not limited simply to rules that are applied to settle disputes in court. Rather, international law is influenced by a combination of law, religious tenets, and diplomatic relations between nations. (p. 262, para. 1) International organizations help to define the development of international law (Melvin, 2011, p. 634). These international organizations are structured through several areas of multinational representation which are regulated and created by treaties. Some of these areas are the well-known United Nations and the U.N. Commission on International Trade Law which devised the creation of the Convention of Contracts for the International Sale of Goods (CISG). This is generally the most popular among international organizations. However, each organization must also keep in consideration certain policies, such as one others political situation, cultural issues...
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...International Legal and Ethical Issues Contemporary Business Law-LAW/421 Dina Centifanti Gledhill May 28, 2012 International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare for the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U.N. Commission on International Trade Law to establish uniform rules for drafting certain international...
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...International Ethical and Legal Issues What are the issues involved in resolving legal disputes in international transactions? When entering into agreement with another country it is imperative the contract is legally enforceable. With international business transactions 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? Some practical considerations of taking legal action against a foreign business partner based in another country are the laws of the country and the possibility that if legal action is taken that country could deny further business transactions. Also to be considered is the standing business relationship between the two countries and the situation itself. For example, legal action may not be the best idea if the country has been faced with major crisis. Instead opting not to take action and receiving compensation may be the better way to go. If there is a good standing relationship one may be able to trust that the country will make good on it. What factors could work against CadMex's decision to grant sublicensing agreements? One factor than can potentially work against CadMex’s decision to grant sublicensing agreements is that in choosing to do this they increase chances of having a lawsuit brought against them. Failure to create a fully detailed contract can potentially result in liability...
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...International trade issues in China Intellectual Property Rights (IPR) issues United States business and government representatives have voiced out on growing concern of the economic losses suffered by U.S. firms which are the impact from the invasion of intellectual property rights (IPR) in China for example cyber attacks. U.S. innovation and the intellectual property that is generated by such activities have been cited by various economists as a critical source of U.S. economic growth and global competitiveness. For example, according to the Department of Commerce, in 2010, U.S. Intellectual Property intensive industries supported at least 40 million jobs and contributed $5.1 trillion to U.S. gross domestic product (GDP). A study by NDP Consulting estimated that in 2008, workers in IP-intensive production earned 60% more than workers at similar levels in non-IP industries. A study on the Apple iPod concluded that Apple's innovation in developing and engineering the iPod and its ability to source most of its production to low-cost countries, such as China, have helped enable it to become a highly competitive and profitable firm as well as a creator of high-paying jobs such as engineers engaged in the design of Apple products in the United States. Lack of effective and consistent protection of Intellectual Property Right (IPR) has been cited by U.S. firms as one of the most significant problems they face in doing business in China. Besides that, U.S. firms have expressed concern...
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...International Legal and Ethical Issues LAW/421 December 18,2012 International Legal and Ethical Issues Our society is involved in a global economy that deals with many countries, cultures, business ethics, monetary differences, and government policies. International transactions are made daily through legal channels that are set up to provide a smooth transition between entities. Provisions of legal guidelines assist in providing the parties parameters of acceptable and unacceptable behavior and consequences in respect to legal disputes of transactions. International transactions may include joint ventures, contract negotiations, employee wage compensation, enforcement of corporate contracts, merger and acquisitions, complex litigation, taxes, securities, and many more corporate decisions. The complexity of International law is best served with counsel that is knowledgeable on international affairs, and government policies. Bilingual counsel in several languages is a great asset to the business team as this provides translation effectiveness for a fairer representation in legal matters. International law is a very different forum of law due to the fact it does not have a governing body or set of laws to follow. International law is negotiated between different countries and the policies and laws of each country to meet a satisfactory line of agreement between the two entities. International law encompasses a collection of agreements, treaties, charters, and protocols...
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...Addressing International Legal and Ethical Issues NAME Law/421 05/12/2014 Milton Luoma Some key considerations in resolving legal disputes is choosing the choice of law. Parties to an international business transaction must choose law that is acceptable to both of them. In many international business transactions the U.N. Convention on International Business Transaction contracts for the International Sale of Goods will apply by default unless otherwise negotiated. There is also a decision that needs to be made in correspondence with what jurisdiction should be used to resolve legal disputes. This provision is put in place because of legal issues related to jurisdiction over the parties and the transaction, enforcement of judgments, legal processes, and travel and litigation expenses. First and foremost, you need to know whether or not you can take legal action in the country in which the partner is located. A first step needs to include looking at the written contract between you and the party to see which governing and jurisdiction clauses will apply and which country the legal action will take place. Given this information, it will allow you to determine if you need to consult in a lawyer in which the jurisdiction will take place. Sublicensing a company’s production process can provide revenue and name recognition but also has its disadvantages too. Some factors include an increase in potential competition and potential risk. Granting sublicensing rights allows...
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...Addressing International Legal and Ethical Issues LAW/421 Contemporary Business Law Addressing International Legal and Ethical Issues With the increasing globalization of business, organizations are finding themselves in an global environment full of legal and ethical challenges. In some international environments, the very legitimacy of a company doing business in a specific country can be a challenge. International transactions and dispute resolution require both an understanding of the law and sensitivity to foreign culture, formal and information power structures and decision-making approaches. This paper will ethical and legal issues involved in resolving legal disputes in international transactions. From an ethical point of view, an organization seeking to expand globally should first consider whether they should conduct business in countries after researching the specific country’s sociopolitical environment. Corrupt public officials, participating in racial or gender discrimination, polluting the environment or violate the human rights of their citizens through slave or child labor or inhuman working conditions (Trevino & Nelson, 2011) is considered corporate culture in some countries. For example, Foxconn is a multinational electronics contractor for major American, European, and Japanese electronic companies who has been involved in several controversies relating to how it manages employees in China. It is claimed that Foxconn uses underage workers and...
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...Addressing International Legal and Ethical Issues Ayanna Segure LAW/421 September 11, 2013 Carol Terry In this simulation CadMex Pharm pharmaceuticals went into business with in Cadore with hopes of expanding on the breakthrough medication Propez that was produced by the biotechnology company Gentura. The two companies ate facing international contracts, as well as sub licensing agreements. The agreement was of the company Gentura to provide licensing rights for CadMax due to the global and manufacturing experience in anticipation of a better profit margin. The resolving go legal disputes in international transaction are not always settled in court. "International law is influenced by combination of law, religious tenets, and diplomatic relations between nations"(Melvin, 2011, Chapter 25). The most shared choice most international business contracts is the International Sale of Goods which protects businesses the way local law does. International arbitration is usually not held on the soil were either party involved is connected with, these arbitrations are enforced due to international laws dealing with arbitration set in 1958. Arbitration is the most practical consideration that can be taken, this process can take a year or more, a party may consider out of court settlements or risk a financial loss. In the case of CadMex and their decision to grant sub-licensing agreement the factors that may work against them is the time and size of the financial investment made...
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...Week 2; Addressing International Legal and Ethical Issues LAW 421 Forum selection should be determined during contract negotiation and execution so in the event of a dispute both parties know if the dispute will be settled in a U.S court, a local court or by either binding or non-binding arbitration. If both parties are members or the World Trade Organization (WTO), they are encouraged to try arbitration first, but if it is unsuccessful, they can turn to the WTO Disputes Settlement Body. When deciding to take legal action against a foreign business partner based in another country, it is important o consider their local cultures and customs. It is also important to have an understanding of their local laws. Other factors that CadMex needs to consider is the amount of time and increases costs involved with maintaining standards of production after sublicensing. Allowing the sublicense will generate goodwill, but the generic brands will be significantly less expensive than the original brand name. This will impact the Candorean GDP and as a result, the Candorean government may not approve the sublicense agreements The prevailing law should be established during contract execution to prevent disputes in the future, however, when local customs and laws conflict with the customs and laws of an organization operating abroad the conflict needs to be examined and determined on a case by case basis. In most cases, it is in the best interest of the companies to work within the...
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...An Evaluation of Cultural issues on International Business performance International business is dependent on co-operation and understanding. It is difficult to achieve this when there are so many inevitable cultural differences between countries and traders. While globalisation has meant the breaking down of many barriers, there are still issues that are unresolved or in need of some further development. Cultural issues such as communication, especially linguistically, religion and a cultures taste or preferences are still important today. When we look to the future these issues becomes perhaps even more important as international relationships continue to grow. The development of markets and the emergence of strong economies such as India and China are challenging the European market and deserve our attention. Therefore, we must examine these aspects over the range of geographical areas and evaluate their status and potential to develop further. The first major aspect of cultural issues can be seen in the obvious language barrier. If we look at China we can see that there are important aspects such as not just having phonetic translations of a product which will be confusing and irrelevant to a Chinese consumer. If it cannot be related to then it decreases the likelihood of being bought. Distributors have even been known to refuse to sell a product without a suitable Chinese name. However, it is not always just the translation that affects business. Meetings with a mix...
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...International Legal and Ethical Issues Simulation Summary The most important thing to consider when solving international disputes is whether or not the contract is legally enforceable in all countries. Countries are ruled by different rules and regulations and the business initiating the contract needs to take into consideration the law, culture, and ethics of the country they are doing business with. When considering sublicensing agreements, CadMex must ensure that all quality standards and production requirements are met. They also need to consider the time and cost it will take to set up facilities and improve technology to achieve the goals. Sublicensing will protect the patent and ensure that CadMex receives the royalty payments due to them as the patent holder. Conflict can arise due to changes in legislation, clashes of interest, and ethical dilemmas. It is important for any company doing international business to know the laws and customs of the country they are doing business with. International organizations such as the World Trade Organization are an important part of governing international business deals. The WTO sets a standard of conflict resolution. It must be specified in the contract how conflict resolution will be approached. In the simulation CadMex had a choice of two international agreements, the CISG and the CRTIC. Both of these help lay down rules, regulation, and requirements that companies are governed by but CadMex must take into consideration the...
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...Political influence on a country’s economic development: According to the book “Global Business Today” there is many debates about which political systems are better for the economy development. There are two types of political systems: autocratic and democratic systems. Autocratic system is described as totalitarian regime, where one person is in power and citizens don’t have free voice, equal rights. The best examples of dictatorship countries are Asia, Latin America and also Soviet Union. The positive side of this king of political system is that totalitarian regime with use of strong protection of property rights leads to economic growth. However, there are no guarantees that this system would allow growing for long time. It is very risky and unpredictable. This political system forgets human rights, which is not good for the country, because to develop successfully citizens have to feel safe and free. The other political system is democratic, where human rights are at the top and citizens have free voice. Most of the Western countries adopted the democratic system. This system is more committed to free market capitalism, where is less government control and more role of free market. The most world’s strongest countries like Poland and many other countries where democratic system was implemented helped the country successfully developed economically. Economic influence on a country’s economic development: Two main steps in the economic system are deregulation and privatization...
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...Addressing International Legal and Ethical Issues Simulation Summary 1. What are the issues involved in resolving legal disputes in international transactions? The issues involved in resolving legal disputes in international transactions include but are not limited to the signing of contracts designed to protect both parties, choice of clause, which forum to use when settling a dispute and if arbitration, if used, will be binding or nonbinding. Something else to think about when resolving legal disputes in international transactions would be to gauge when the government stands in the legal proceedings and to find out if the particular countries government can overrule any decisions made by the companies. Other issues would include the political situation, dominant international laws and cultural issues that would influence the achievement or disappointment of the business venture. 2. What are some practical considerations of taking legal action against a foreign business partner based in another country? Some practical considerations of taking legal action against a foreign business partner based in another country include looking out for the best interest of the company your represent as well as future business ventures with the company or country you are in business with. One would also have to take into consideration economic, legal, and ethical associations. The economy of the country that you are contracted with may have ulterior motives in the business arrangement...
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...International Legal and Ethical Issues In an attempt to address legal and ethical issues domestically and internationally we will use the simulation and readings to discuss the questions from week two’s team project. Whether the company is a domestic company or foreign country there are legal, ethical and cultural issues that must be addressed. When addressing issues that arise when handling international legal disputes it is important to choose where and how the dispute will be settled. Each business or party involved in a legal dispute will presumably favor settling disputes within their own country. Disputes settled on homeland soil risk other countries perceiving the court’s decision as partial and unfair and therefore may attempt an appeal process and possibly bring negative attention to the country resulting in the withdrawal of interest from other foreign investors. When businesses enter into agreements with other businesses in foreign countries the contract should be clearly defined providing a plan that both parties agree upon. Laws and customs should adhere within the country in which the business or legal action is taking place. Imports and exports are examples of this because each country has different import and export tariffs and laws which should be followed in order to avoid repercussions from the government. In the simulation, CadMex, a large pharmaceutical company is entering into a contract to license with Gentura to market the Propez. Gentura has...
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