This paper discusses many of the issues in week two simulation regarding international legal and ethical issues between CadMex Pharma and Gentura Companies. Among the issues discussed involve resolving legal disputes in international transactions, fully understanding what legal action can affect business partners, sublicensing agreements, local laws versus another countries laws, and resolving domestic and international issues differently referring back to week one for explanation.
Addressing International Legal and Ethical Issues
International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. After completing the simulation the best option for both organizations is to create a contract for the International Sale of Goods and International Arbitration. This will allow each organization to resolve any disputes that come up. It is important to have a contract when conducting business internationally as international relations do not always last. In the simulation a conflict arises because there was a virus-related epidemic that Gentura was face with. Gentura is located in Candore and there was a political turmoil in Candore which caused them to form a democracy. Gentura will need to step in and help with the viral epidemic and will need to create ViroBlax for the infected. In doing so, this would violate the payment terms of the contract between both organizations. Since Gentura was in breach of contract both organizations will...
References: Apollo Group. (2004). Addressing international legal and ethical issues [Multimedia]. Retrieved from Apollo Group, LAW421 - Contemporary Business Law website.
Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
World Trade Organization. (2012). Retrieved from http://www.wto.org/english/tratop_e/trips_e/public_health_faq_e.htm
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