The simulation takes us through an international relationship that faces many obstacles. It analyzes “the political, cultural and legal environment of an American business based in another country”‘ (University of Phoenix, 2004). Each choice has its consequences, both positive and negative, so is there true right choice? The one thing I learned by doing this simulation is that you won’t always please both parties. Sometimes you have to step on some toes to take a step forward. Issues with international legal disputes The legal issues involved with international are similar to those found in the United States.
These issues are legal, ethical, and cultural traditions. In order to successfully conduct business in a foreign country, you must learn and understand the legal aspects of the host country. Local laws can help advance the success of the company, but it could also jeopardize current and future business. An important issue that can arise and in many situations is cultural beliefs and practices. Some countries have cultural traditions, such as the male growing a beard throughout his adulthood. This would be something to keep in mind if a food distributor plans on doing business in these countries.
Ethical issues can also become a problem when a decision is required to be made which could mean financial success, but possibly cross the line of ethical values. These are only a few of many issues that can steer a business in either a positive or negative direction. Taking legal action This is key because typically local law histrionically when there is a legal dispute, unless it is specified in the contract. International contracts must accommodate both countries involved in the transaction when there is a discrepancy.
The business contract must specify roles and regulations for day-to-day business as well as legal precautions. Cultural accommodations, if any, should also be included in the contracts to avoid cultural disputes should any arise. Factors against subleasing agreements Cad Me’s decision to subsidence the production of an aftermarket may seem to help get them out of a bind in the short term. Unfortunately, there are many factors that could hinder complete success with this decision. The quality of the outsourced product could be a major issue, especially in the pharmaceutical industry that Academe is vested in.
The decision to subsidence will make the company liable for any defects or damages. The decision to ebullience should only be considered with and elaborate and detailed contract agreement. Local vs.. International Laws The conflict between local laws and culture versus those of the foreign entity can become a very sticky situation. It is definitely something that needs to be a part of the contract agreement, as stated in the Legal Action section of this paper. In my professional experiences, have had the opportunity to deal with international relations many times.
The one thing that was Common between all of my experiences is that we were educated on the local culture. We were also trained on how it would affect our normal business tasks. The key to every experience was that we were the visiting country and had to abide by the local country’s customs. There were specific legal guidelines in our contract agreement, but political and cultural traditions were always recognized. From the business viewpoint, the visiting country wants to pass on the image that they respect the local country.
Most of business is driven from relationships built outside of the business realm. Another important point to raise is that the purpose of starting a business in a foreign country is make money. You cannot do that by disrespecting their cultural customs and laws. Comparison and Resolutions The issues with international business are very similar to those of domestic business arrangements. The topic of overruling jurisdiction comes into play when the parent company is based in one state or local, while the product is manufactured in another state.
Which state will the case be tried in? This is where the contract agreement comes into play. There must be some reference of this in the contract should the occasion arise. A big difference in domestic cases in the United States is the two levels of courts. “The first level, state courts, adjudicates matters dealing primarily with cases arising from Tate statutory, common, or state constitutional law. Federal courts are courts concerned primarily with national laws, federal constitutional issues, and other cases that are outside the purview of state courts. (Melvin, 2011). The simulation had a scenario that brought the issue of conflicting jurisdictions to play. I had to choose which type of law would prevail to resolve contract disputes, in which chose International Arbitration. Each situation and location will have its specific issues to consider and some that are unplanned. The key is to handle the unpredictable as best as possible, but hammer down n the obvious opportunities. Conclusion “Setting up and managing a business in an international scenario is full of challenges. ” (University of Phoenix, 2004).