This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare the unexpected to ensure success.
Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Action against foreign businesses Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U. N. Commission on International Trade Law to establish uniform rules for drafting certain international sales contracts” (Melvin, 2011 P. 34). Often foreign business use alternative dispute resolution to resolve contract conflicts that arise. Third parties ensure the safeguard of interest, tankard law, and clause through such business contracts. International arbitration is the first resort to solve contract disputes. When arbitration fails and foreign parties belong to the World Trade Organization (WTFO), the WTFO determines contract disputes. Businesses must ensure contracts are legally binding and enforceable.
Legal issues are often evident however; the ethical and cultural issues create no clear-cut answer to solving legal disputes, as shown with compulsory licensing and subleasing agreements. Subleasing agreements In the Apollo Group stimulation, “Addressing international legal and ethical issues” (2004), Academe and Century have a pharmaceutical drug partnership located in Candors. The partnership specifies contracts for International Sale Of Goods as a choice Of law and International Arbitration to solve disputes.
Later an outbreak of a viral infection creates a health emergency in Candors, and the Concordance government places threat to suspend the Virginia drug patent If Academe refuses to provide subleasing of Variable, the Concordance government will suspend Academe’s patent on Variable and provide impulsion licenses for domestic manufacture of generic Variable. According to “World Trade Organization” (201 2), “compulsory licensing is when a government allows someone else to produce the patented product or process without the consent of the patent owner.
It is one of the flexibilities on patent protection included in the Mom’s agreement on intellectual property” (What is compulsory licensing? ). Subleasing will take time and money to ensure the other pharmaceutical companies meet Cad Mix standards, and production requirements. However allowing subleasing will recluse the need to suspend the patent and Academe will still receive royalty payments due as patent holders.
A final thought, American business entering in foreign partnerships clearly must define contract terms. Customs and laws conflict Similar to business in the Untied States, entering into foreign partnerships often creates custom and law conflicts. Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must SE precaution to avoid ethical, legal, and cultural issues.
Business must prepare the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Domestic Legal Issues When dealing with both domestic and international issues a business should approach them different. The reason that they need to approach them different is the difference of laws in each country.