International Legal and Ethical Issues
When businesses deal globally to expand their markets they may face dilemmas which must be dealt with to avoid conflict. The types of issues many companies encounter deal with legal, ethical and cultural encounters. From our example we see the legal issues in settling disputes for international transactions can become very complex. Ethical issues concerning the workers, the culture, and the environment are all contributing factors international companies must be ready to address. CadMex Pharma and Gentura must establish a business agreement that protects both of the company’s interest from issues concerning the social, legal, and ethical norms of the host business.
What are the issues involved in resolving legal disputes in international transactions?
The process for resolving any disputes must be agreed upon by both companies wishing to do business together. A formal structure for settling disputes as companies work together to achieve their desired goals should be established. The political environment and the economic climate of the company must be taken into consideration as well. Questions should be answered concerning the involvement of the government in the business and its role in the decision making process. Does the country of the business participate in any generally accepted international treaties and adhere to the rules such as those set by the world trade organization (WTO).
International organizations usually regulated by treaty, help to create international law. Matters concerning dispute resolution must be agreed upon as companies seek to do business together. The manner by which laws are applicable should be recognized and agreed upon before disputes arise. The choice-of-law such as the Contracts for the International Sale of Goods (CISG) provides for internationally acceptable laws for organizations who conduct international trade. These laws will prevail over the individual country of origin laws when both countries agree to the CISG. Courts from either country would have a hard time enforcing laws against international business in another country. Matters concerning dispute resolution must be agreed upon as companies agree to do business together.
What are some practical considerations of taking legal action against a foreign business partner based in another country?
Companies seeking to take legal action against a foreign business partner must consider what type of agreement exist between the international businesses. Which laws and court system of each company will prevail? The agreements between international businesses should consider if International arbitration will be used to settle disputes and if the arbitration is binding or nonbinding. International organizations who follow a system of Arbitration which has a high level of acceptance may incur less expense and still maintain a working relationship. Arbitration awards are enforceable in many countries...