International Legal And Ethical Issues Simulation Analysis

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Addressing International Legal and Ethical Issues Simulation Erik Larson Law/421 February 17th, 2013 Eric Nord Addressing International Legal and Ethical Issues Simulation Strategy and tact are both required when a profitable endeavor is wanted while conducting international business. When conducting international business, legal issues are bound to arise, but must be resolved in order to retain the relationship between organizations. How a company deals with these legal issues is what can set a successful company apart from the rest of the field. When entering into an agreement with a company in another country, legal documents must be drafted to protect each company’s interest. In a business context, dispute resolution is not simply…show more content…
A hypothetical company, CadMex Pharma based in Tampa, Florida, which teams-up with another hypothetical company, Gentura based in a small developing country, Candore. A series of events takes place between CadMex Pharma, Gentura and the country of Candore, which has an impact on the business operations of CadMex Pharma. The contract that these two companies get into is that CadMex will license their technology and provide expertise. In return, Gentura will give CadMex the global marketing rights to the anti-diabetic agent that Gentura has developed. One of the events that take place in this hypothetical situation is CadMex’s decision to grant sublicensing agreements. Sublicensing is a license giving rights of production or marketing of products or services to a person or company that is not the primary holder of such rights ("Sublicense," 2013). When sublicensing agreements, what could work against CadMex are the lawsuits that could start to accumulate due to the negligence of a third party. If there is a worker that does something wrong, damages property, or does something outside of the agreement, the original company could be held liable for the negligence. There is also the possibility of these third parties putting out an inferior product from which CadMex would receive the negative publicity…show more content…
When dealing with a foreign business; there are a few elements to consider: Every culture and nation has its own values, history, customs and traditions, thus it has developed own ethical values and understanding of ethical principles. There is no international ethical code of conduct, accepted and followed by all the countries. There is a lack of governments’ initiative to create ethical cooperation framework and thus to enhance ethical behavior in international business. It is hard to outline those ethical values which would be understandable, acceptable and important for representatives of all the continents simultaneously within different types of international cooperation projects (Scevola, 2013). These are just a few elements that need to be taken into consideration when doing business abroad.
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