What are the issues involved in resolving legal disputes in international transactions?
The understanding of international legal and ethical issues plays a critical role in the success of global business because it can help during challenging times through the business transaction. Issues such as politics, legislations, clashes of interest, local laws and culture must be taken in consideration during international transactions since they can affect in different means these businesses.
What are some practical considerations of taking legal action against a foreigner business partner based in another country?
When companies make business with foreigner companies located in different countries, they should enforce a legally contract. This contract’s purpose is to protect the company’s interest and must stated the possible ways to resolve disputes. It includes the choice of law clause, which refers to the law that will be applicable. (CISG) Contacts for the International Sale of Goods is a one of the options that offers an international law of sales based on international business contracts. Another option is to simply apply the domestic or local law from the country where the business is located. Additionally, the contract must specify the forum selection clause, which identifies the forum through which a possible dispute will be settled. Companies can choose between international arbitration and local courts.
What factors could work against CadMex’s decision to grant sublicensing agreements?
Many different factors would be against CadMex if the sublicensing were grated. For instance, the sublicensing companies must meet quality standars and production requirements of the ViroBlax medicine, the generic version of ViroBlax could become more popular than the original, encourage of uncontrolled piracy of drugs can raise, the government could declare compulsory licensing and CadMex could lose royalty payments if the government suspends the patent.
When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
Good understanding, respect and sensitivity of the local customs and laws is essential to establish a business in another country. It is in the best interest of the company to operate within the local customs and laws to prevent future disputes. To enforce foreign laws and customs of another country could lead to discontent on the employees and a bad reputation and image of to the company.
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