International Legal and Ethical Issues Simulation


InternationalLegal and Ethical Issues Simulation

AddressingInternational Legal and Ethical Issues

Alarge number of businesses are going international in order toincrease their market share. Some of the companies have openedbranches in other countries, some have franchised while other havepartners with local companies in different countries to increasetheir international presence. Nevertheless, while operating in aninternational environment, a global company may be involved indifferent kinds of disputes. The resolution of these disputes ismandatory in a business environment. Therefore, it is essential tocomprehend issues that are associated with resolution and ethicalissues in international business.

Thereare different issues that ate involved in resolving legal disputes ininternational transactions. Accordingly, when resolving legaldisputes, there are question with respect to the country’s courtsthat possess the jurisdiction to try the dispute and the type ofcounty’s law that should be applicable to the resolution of dispute(Richards &amp Shackleford, 2014). Another issue revolving this iswhether any foreign judgment generated abroad might be enforced inthe home country. Additionally, another issue is whether there arechanges in the international laws and regulations (Nelson, 2013).Therefore, when taking legal action against a foreign businesspartners based in another country, the practical considerationsinclude assessing whether the contract is legally enforceable(Nelson, 2013). Moreover, analyse the laws of the other country anddetermine whether a legal action has the possibility of denyingfurther business transaction in that country. Moreover, anotherconsideration is the standing relationship between the two countriesand the situation (Richards &amp Shackleford, 2014).

CadMexis a company that has decided to grant sublicensing agreement. Thereare a number of factors that might work against this decision.Accordingly, this decision has a high potential of creating an avenuefor lawsuits against the company. Additionally, if the company doesnot fully create a detailed contract, this can lead to liability suchas a party filing a lawsuit against it (Nelson, 2013). The lawsuitcan stem from the licensing agreement deficiencies. Aside from this,is some occasions, the local laws and customs may conflict with thelaws and customs of an organization operating abroad. Organizationsare charged with the responsibility of complying with the laws,regulations and customs of the country they operate in and theircountry of origin (Richards &amp Shackleford, 2014).

Therefore,the organization should adhere to the local customs and laws. Thereis a difference between the simulation of international legal andethical issues and the domestic law. The international law does nothave a common executive. Thus, there is no power which can make anation or state yield to the decision of a court (Nelson, 2013). Onthe other hand, the domestic legislation has a common executivemaking the court decision acceptable. The international legislationhas a weak sense of community compared to domestic legislation. Thedomestic law has fewer conflicts while international law may lead toconflict due to the differences between the two countries in question(Nelson, 2013).

Whenoperating in an international environment, companies have to assessthe legal environment of the countries they are operating in. theyhave to understand how the other country and their own countryhandles disputes. Moreover, they have to understand the internationallaw so as to determine their role in the resolution of disputes.


Nelson,B. (2013). Lawand Ethics in Global Business: How to Integrate Law and Ethics IntoCorporate Governance Around the World.Abingdon, Oxon: Routledge.

Richards,E., &amp Shackleford, S. (2014). Legaland ethical aspects of international business.New York: Wolters Kluwer Law &amp Business.