The local customs and laws must be taken into consideration and followed especially when you are conducting business in ones backyard. There shouldn’t be any conflict cause the different laws and customs should’ve been researched and worked out before the organization was even open for operation. Making a decision to open an organization in a foreign country is not always easy especially when the legal aspects are not always the same. When resolving legal disputes in international transactions there are some issues that will occur.

The issues are making sure the contract is legally enforceable, the contract protects the company interest in the foreign country against all eventualities, knowing the political situation and the international laws and ethical differences in such business transactions. Foreign countries legal actions are not the same as the US, so there are some practical considerations that must be considered when taking legal action against a foreign business partner. Some of the practical considerations are the law of the county, the binding of the contract and the fact that the country can stop all transactions from the business if a lawsuit is filed.

With any decisions you make, there will always be pros and cons. In the simulation Academes made a decision to grant subleasing agreements, which there are factors that could work against them. Some of the factors that could work against them is if Century decides to violate their non-disclosure agreement and sell the proprietary information to the highest bidder for a financial gain, the difference of the price of Academe brand and the country’s genetic brand, and it leaves the organization in a vulnerable state because lawsuits can be bought out against Academe.

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Therefore it can be challenging and beneficial when doing business in another country, but it depends on people to do their homework and research the country before operating a business. In conclusion, laws and customs are not the same in foreign countries as hey are in the US. When thinking about operating a business in a foreign country, you must take these aspects into consideration because legal issues play a major role.

In week one reading, companies didn’t resolve domestic and international issues in a competent manner. Most of the cases discussed left the different parties in worse situation than they were already in. In this simulation it discuss the difference in the laws, which helped to better resolve the issues. Companies should resolve domestic and international issues through litigation and arbitration, because of the differences in laws.


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