When businesses deal globally to expand their markets they may face dilemmas which must be dealt with to avoid conflict. The types of issues many companies encounter deal with legal, ethical and cultural encounters. From our example we see the legal issues in settling disputes for international transactions can become very complex. Ethical issues concerning the workers, the culture, and the environment are all contributing factors international companies must be ready to address. CadMex Pharma and Gentura must establish a business agreement that protects both of the company’s interest from issues concerning the social, legal, and ethical norms of the host business.
What are the issues involved in resolving legal disputes in international transactions?
The process for resolving any disputes must be agreed upon by both companies wishing to do business together. A formal structure for settling disputes as companies work together to achieve their desired goals should be established. The political environment and the economic climate of the company must be taken into consideration as well. Questions should be answered concerning the involvement of the government in the business and its role in the decision making process. Does the country of the business participate in any generally accepted international treaties and adhere to the rules such as those set by the world trade organization (WTO).
International organizations usually regulated by treaty, help to create international law. Matters concerning dispute resolution must be agreed upon as companies seek to do business together. The manner by which laws are applicable should be recognized and agreed upon before disputes arise. ...
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... This method of sustainability enables the company to break through some of the cultural barriers and gain a competitive edge in China’s markets. However, Global companies do need to be sensitive to political and religious beliefs. Many companies will hire interpreters to teach and give a clear understanding of customs and beliefs. This will enable companies to set guidelines and practices in place before the hiring process begins. Through education and awareness companies can influence change in customs and beliefs. As long as the change becomes acceptable to the general public, does not violate local customs, and honors the laws, companies conducting business abroad should be able to exercise their customs also.
Melvin, S. P. (2011). The Legal Environment of Business: A Managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
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