Before taking legal action against a foreign business partner it is important to take into consideration different laws, political situations, prevailing international laws, and cultural influence have a major impact on international markets. Usually, international arbitration is the most appropriate venue to resolve any disputes between both companies. It is also important to factor in issues such political climate and sublicensing when making decisions as these could drastically affect an international partnership.…
“When a U.S. company enters into an agreement located in another country, it must ensure the contract is legally enforceable” (Melvin, 2011). The same would apply to an international business, and they should be fully aware of any changes made to international laws and legislations.…
The most crucial factor a company must take into account is the rules of the country that it goes into when conducting business. Legislation in the United States of America might not be the identical to legislation in the overseas country. In case a particular legislation is broken, simply because the law is enforceable in the U.S., it might not be enforceable in the overseas country. Even though agreements are binding contracts, they are just binding in case the law agrees. One final aspect to consider are specific countries may refuse additional business transactions in that country when they file a case (Melvin, 2011).…
When the United States (U.S.) entering into an agreement with another country it is important that the U.S. Company confirms that the contract is legally enforceable. With international business transactions each country needs to be aware of any international laws and legislations. Both parties should also be aware of changes that are made to international laws and regulations.…
If a United States company go into contract with another country, the United States must verify that the contract is legal and enforceable. International companies should do the same if they are doing business in the United States. Laws are different in each country. A company must make sure they have an understanding of the laws within the country which business is conducted in. The laws from one country to another can make or break you.…
Over the course of completing the simulation, which was designed to address international legal and ethical issues for a company, there were a number of things that can be taken for granted within the United States but is though upon differently in other countries. It was interesting to note that there are distinct issues that must be addressed in resolving legal disputes, especially in international transactions. One issue is that there needs to be a clause, written within the contract, which will address how issues will be resolved between the parties. A second point to consider is that there needs to be some type of enforcement to confirm that a resolution will take place.…
The fact is that domestic law has nothing to do with international law and companies should be ready to face any issue that could appear. The second week material offered more information on how to handle international issues. The forum selection is the most important thing to do when trying to avoid future conflicts of law. Litigation and arbitration are the best options for organizations involved in international disputes. Legal advice or counseling is a useful resource that could help avoid confusions and setbacks in the future; it is always better to be…
International laws govern the conduct between nations, also applying to private individuals engaging in international transactions. Two main sources are:…
In summary, whether a business is a domestic or international based the rules of the game have to be clearly defined. By not doing so, the success of any venture is doomed to fail and with good reason. Extensive knowledge of the field chosen to do business is fundamental and when disputes arise the parties involved have to know that their interests are being represented in an equitable manner. Good reputation and good business practices are good traits for businesses to ensure compliance with laws which can be local or international. It is imperative…
When moving from domestic to global operations, a company must now consider various ethical and social responsibilities. For example, companies must consider the impact their presence has on the local economy and existing businesses. For example, if Walmart were to open a chain of stores in a new area where local, family-owned business dominated ate the market, that could have a serious impact on the local economy. Another example would be consideration of how the company's practices may impact foreign relations in that region by your domestic company, such as in the case of sanctions. A very common business practice is considered acceptable in one country but not in another is bribery. Social norms in one country may set the stage for a bribe as a normal method by which individuals make a living. A business practice that is very commonly considered acceptable in one country but not in another is bribery. Social norms in one country might set the stage for bribery as the normal method by which individuals earn their living. This is further complicated by the Foreign Corrupt Practices Act, which actually makes bribery illegal, even when it occurs in other countries. This can make business dealings very challenging, because by making bribery illegal, it does not allow the system in the other country to operate the way it has been designed or has evolved. This is further complicated by the Foreign Corrupt Practices Act, which actually made illegal kickbacks, even when it happens in other countries. It can make a business deal that is very challenging, due to making illegal kickbacks, not allowing the system to operate in other countries in a way that has been designed or have evolved.…
There is a contract between them that stipulates responsibilities, deliverables, warranties, and dispute resolution mechanisms. Private law oversees this process. State laws and federal law regulates the financial exchange for the products or services delivered. If there is a dispute, Procedural law will govern the courts. The purpose of all these roles and functions for the parties interacting in society is to have equal, measurable rights during their interaction. If the business interaction is an international transaction, the parties will conduct their business regulated by international laws, and one country will be agreed to be the territory where disputes are resolved. The international transaction is more complex because usually the laws of one country are not valid in the other country.…
This journal contains the reflection of the Ethics Game simulation assignment. The purpose of this paper is to describe the steps and process that I used to answer the ethical questions involved in two simulation games: The case of the troubled Teen and Policies and Politics. In addition I will also discuss how these concepts relate to my workplace.…
The issues involved in resolving legal disputes in international Transactions are the changes that are mad to international laws and regulations. The largest focus is the minimum wages. What is most discussed is China has a cheap labor force compared to America. This increases the profits for the company who outsources to cheaper labor cost. If the China manufacturing do not meet the US standards the US Company may become obligated to take legal action against the China Company. The American Company must take into consideration if the China Company meets their manufacturing requirements. The most common discuss topic on this matter is the lead based paint China Manufacturing applied to their products. American laws banned lead based paint and all products in China did not have an obligation to change their paint because China did not ban the lead in the paint. Once the orders started to return because it didn’t meet the US standards, China standards and laws did not change, however the China Company changed its paint to continue business with its foreign business partner. This strengthened the relationship and caused for contracts to outline such changes in manufacturing requirement. To cover the purchase of illegal products a contract must be agreed upon between the companies. This is the same in the way CadMex granted sublicensing agreements. This places CadMex as the liable party in a lawsuit. Without total control over the loosely worded contracts they become vulnerable to loop holes when law suits are filed against them. When the local customs and laws conflict with the customs and laws of an organization operating abroad the company that produces the product has the responsibility to abide by the ordering countries laws. When ordering products the contracts should stipulate the required regulation standards. If both parties agree upon the…
With the ever expanding global market, the ways Americans conduct business in other countries is one that can conflict with our laws and culture. There are many cultures that don't eat certain foods or drinks due to religious practice, for example. Then there are laws that can conflict the way we as Americans proceed with business in foreign countries. Many countries don't have laws that help curve gender discrimination as well which can create problems for American women working overseas on behalf of an American company. As United States continues to make is mark on the global economy, there are laws that help protect not only our companies, but also other companies through out the world as well.…
1. What special ethical issues arise in international business. Use the ethical theories we have studied…