International legal and ethical issues Essay

Submitted By lbyers0407
Words: 509
Pages: 3

International legal and ethical issues
When a business is considering to pursue international business the managers must be aware of the issues involved in resolving legal disputes with a foreign nation. The manager needs to be aware of the ethical and legal issues they must adhere to from our country. They also need to know the legal recourse of the foreign nation. Does the nation they wish to do business with a member of World Trade Treaties. What court will hear the dispute, the United States, the foreign country, or the International World Court. Will they put in the agreement if binding or non-binding arbitration will be used. These issues must carefully be considered when drawing up the contracts between the two companies to help avoid future conflict.
If a manager is considering suing a foreign partner he/she must decide if the economic situation outweighs the good will loss between the two parties. The manager must also decide which venue to use. If they take it to court in the foreign country, the laws may be biased against the U.S. firm. Taking it to World Court can cost more than the suit can gain. If they decide to use arbitration, do they want binding or non-binding arbitration.
In the simulation CadMex needed to weigh the time of arranging the sublicensing agreement with the medical situation of the country. If the virus overtook the country before the licensing agreement was in place, they risked the goodwill of the government. Future collaborations may have been put in jeopardy, costing CadMex economically. The investment they already had with the production agreement could be lost.
The U.S. company needs to be aware of the differences in culture must also be considered. Ethical standards may be different in the foreign country. This may have conflicts with U.S. Law on how foreign law labor contracts and policies are written. U.S. companies need to maintain…