November 24, 2014
International Legal and Ethical Issues
There are many issues that have to be addressed in the beginning of international transactions. When making international business decisions there could be major factors that the companies will have to work against. If a case where legal action needs to be taken against foreign business partners, there would be concerns. The laws between customs and local authorities will have differences that they must follow. If the local laws and customs clash with the foreign business partners, it would be difficult to determine who would come out on top due to the differences. That is why it is extremely important that business transactions follow the exact agreement from the start.
It is crucial that the companies agree on the choice of law and jurisdiction right from the beginning when one company is in another to conduct business. In the example given in the simulation, there was an outbreak that affected the business relationship between CadMex and Gentura. If the companies had not already decided the choice of law and jurisdiction for dispute resolution, CadMex could have suffered more severe financial losses because of the forced subsidization of generic medication; however they had a plan in place to help deal with un-foreseen situations.
Cultural, ethical, and language problems could arise in a legal battle. It is important that when taking legal action against a foreign business partner that there companies keep in mind that there are other practical considerations to think about. There was an ethical dilemma when in the simulation CadMex decided to take legal action against Gentura. CadMex was seen as a money hungry company that decided that wealth was better than health. It was difficult to explain the company’s viewpoint