International Legal and Ethical Issues Simulation Summary

¶ … International Legal and Ethical Issues Simulation Summary George Egloria Thane Messinger Addressing International Legal and Ethical Issues Simulation Summary Issues involved In jurisdictions where the assets or shares of the transactions are located, a local counsel will be a mandatory prerequisite. In addition, it is likely to engage the local counsel in the seller's jurisdiction. The process of selecting the appropriate company to collaborate with is important. Apart from competence, issues like commitment, trust, and confidentiality are crucial. It is also important for the local counsel to clear conflicts.

Counsels must ensure that they are aware of the laws in every jurisdiction. This will make it easy for them to observe all the ethical structures of the local and international laws (Halbert & Ingulli, 2012). They should be aware of possible changes at all times and confidentiality agreements are important in such situations. This request is fair on the ground that the undertakings and covenants are reasonable. Q2.

Practical concerns in legal processes Some practical considerations of taking legal action against a foreign business partner based in another country include foreign country laws, forum selection clause, current contracts, domestic laws, and international laws. Since the considerations can save good money for various business entities money, it will be needless to take legal actions to resolve disputes between partners if there is a forum selection clause.

Legal action only worsens issues because it may mar the reputation of a business in foreign markets and cause damage in the parent country (Horn, & Norton, 2000). Additionally, language proficiency is a key consideration in multinational transactions. It is common to find various business documents to be in different languages other than English. It will be advantageous to have a lead counsel who has the required skills. Q3. Factors disfavoring CadMex's decision CadMex has fought its business risks by engaging in sublicensing.

In case of any damages accruing from the drugs, Candore people will hold CadMex responsible. Although sublicensing local firms might be the second best option, the local firms should be trained to adhere to the guidelines set by CadMex. When the local firms commit errors, which eventually lead to deaths, CadMex will be taken to task. Because it has decided to sublicense local companies, it has introduced a competitor in the space, which carries another risk.

CadMex must be confident that the value of its offering exceeds the patent and encourages competition in business. CadMex will be confronted with the issue of cost of production. Training the local firms will be costly, as the return on sales will not be achieved (Hoffman, 2008). Q4. Local vs. organizational customs and laws Every country has laws directed to foreign multinational companies operating within its borders. Representatives engaged in international business are obliged to know and comply with both laws and regulations of the nations in which their firms operate.

In case local and foreign laws conflict or more restrictive than foreign laws and company policies, the local law, customs and policy often prevail. In fact, the customs and laws of the jurisdiction are highly recognized in this situation. If a firm has a business in a foreign nation, regardless of the business being conducted, the firm must comply with the laws and regulations of the country in which the business is taking place.

If a firm's headquarters is based in a nation that forbids some actions otherwise considered illegal in the country in which the business is being conducted, then it is also important to observe the laws of the headquarters' country (Hoffman, 2008). It is important that the organization acknowledges the need to act according to the laws of the country. Issues in this simulation vs. Week One readings: resolving cross-border issues In this case, the difference outweighs the similarity.

The similarity between issues in this simulation is that firms can disagree due to conflicting legal structures. This arises because firms prefer the legal structures of their home countries: adapting to new and foreign laws is always a challenge and sometimes a near impossibility. The difference between issues in the simulation and those discussed in week one reading is that, the former focused on external aspects like culture and political risks.

According to week one discussion, international firms are mostly concerned with the magnitude of political and cultural risks in foreign jurisdictions. From the political risks, firms are concerned with the possibility of government activities, which might have unwanted consequences for the business. These impacts could be dramatic such as forced investment where a foreign government demands firms to give up its assets, thus interfering with business operations. However, this risk emerges due to uncertainty regarding the possibility of government activity taking place (Horn, & Norton, 2000).

In most cases, risks are linked to a nation's political instability:.