Addressing International Legal and Ethical Issues
August 31, 2015

Addressing International Legal and Ethical Issues
The U.S. based Pharmaceutical Company CadMex and Candore based company Gentura are entering into an international partnership with each other in this simulation. Cadmex will lend its resources to Gentura in order to expand the company’s global reach and capital.
What are the issues involved in resolving legal disputes in international transactions?
Candore is a small dictatorship country located near in the Asian pacific, which is also home to Gentura. The dictatorship also lends some economic and political issues that CadMex must become very familiar with. The legal issues involved are the fact the government is somewhat unstable and unpredictable. The country is also not a part of the World Trade Organization, so the contract had to be amended once they were accepted into the organization. Also, there is a ethical issue involving religion of some of the workers in the factory in Candore who refuse to shave during one week in July that has to be settled.
What are some practical considerations of taking legal action against a foreign business partner based in another country?
Some of the practical considerations of taking legal action against a foreign business partner based in another country are that you have to take account for the political policies of the country you are doing business. That country may also face a major economic, political crisis, or health crisis that can put your business transactions at risk. You may also want to consider possible litigation with the business you are considering entering into contract with and what laws may prevent or hinder those processes.
What factors could work against CadMex's decision to grant sublicensing agreements?
Time is a major factor involved with granting sublicensing agreements to other companies. CadMex and Gentura would have to provide training and make sure that each factory adheres to its standards. All of this time associated with these new companies would be very costly to the company’s profit margin.
When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
The customs and laws of the organization should not cause trouble when it comes to the local customs and laws because it is the local individuals that are employed by the company. The local customs and laws should be taken into consideration when putting together operating procedures of any company abroad. There will always be conflicts when operating in different countries, but a well prepared business will handle them appropriately.
How would you compare the issues in this simulation to the domestic legal issues discussed in your Week 1 readings? How should companies resolve domestic and international issues differently?
To compare domestic issues with international issues can be somewhat hard but they are very similar in many ways they both can be handled through ADR. Even though the organization in which the ADR is handled is a little different and the rules are too the process is the same it. An independent party either mediates, or arbitrates an agreement between two parties.