May 20, 2013
International Legal and Ethical Issues The following is a summary of the simulation “Addressing International Legal and Ethical Issues” from the University of Phoenix student website. The summary will include the issues involved in resolving legal disputes in international transactions and determine which would prevail when local customs and laws conflict with the customs and laws of an organization operating abroad. An explanation as to why will also be given.
Strong international business relationships are built upon an understanding of how to address international legal and ethical issues. To enter into an international contractual business venture one must consider the laws and rules of any countries bound by the venture as well as multinational governing agencies such as the World Trade Organization. Some of the issues that would need to be considered are the country’s political stability, patent and copyright protection laws, employment regulations and laws, and cultural and ethical diversity issues (Marvin, 2011). The simulation was about the United States and Candore working together to license a drug (University of Phoenix, n.d.). The simulation shows three scenarios and the first was to determine litigation in the U.S. or in Candore. Binding arbitration was chosen. This was chosen because it ensures all decisions are final and because Candore is a dictatorship. Another scenario involved a U.S. company based in Candore suspended Arabian workers because of a contract violation. The contract requires all lab personnel to have shaved faces; however, religious custom prevents this during a week in July (University of Phoenix, n.d.). There is a fine line when bringing forth disputes regarding religious culture because the country on a whole could back out of the business venture. The company chose to revoke suspension of that employee and have added a provision for Arabian workers (University of Phoenix, n.d.). Some issues in resolving legal disputes in international transactions are having signed contracts to protect both parties, clauses, forum for settling disputes, and binding or non-binding arbitration (Marvin, 2011). It is also important to know where the government stands regarding legal proceedings and if the