Certain legal and ethical issues may arise when conducting business outside the United States. Some companies may not be as resourceful with various contracts when dealing with companies internationally. When a U.S. company enters into an agreement with a company located in another country, the company must consider the rules and regulations of not only that particular country but others as well. A second factor would be a U.S. company must take into consideration that when legal, ethical and cultural issues arise many need to answer the question does the result end up in not doing business. The second factor is both companies must ensure the contract is legally acceptable and bound. The contract must protect the company's interest in the foreign country against all eventualities, given that possible disagreements and disputes are common in international trade (University of Phoenix, 2005). As it will briefly outline the simulation in week three involved a breach of contract dispute between Gentura and CadMex Pharma.
I will also outline three examples of laws conflicting with cultural practices in their companies today.
The dispute between Gentura and CadMex Pharma should be settled by international arbitration vs. Candore Courts. International arbitration is a proceeding in which two public or private entities refer their differences to one or more selected persons which will issue a binding decision. Arbitration is defined as the submission of a dispute to one or more impartial persons for a final and binding decision, known as an "award." Awards are made in writing and are generally final and binding on the parties in the case.
Proponents of smokers' rights often claim that the government should not be able to pass smoke-free laws because smoking is a personal choice that falls under the constitutional right to liberty. However, the constitutional right to liberty...