1. What are the issues involved in resolving legal disputes in international transactions? When trying, to resolve legal disputes in international transactions, the companies may face multiple issues. According to Melvin (2011), the international environment some intentional torts are more important to managers and business owners as they have the power to influence business relationships and operations. One issue may be the place to deal with these disputes. These disputes should be a neutral territory.
Another issue is that where one of the party’s legal activity in one country might be considered illegal activity in the other country. 1. What are some practical considerations of taking legal action against a foreign business partner based in another country? Some practical considerations when considering going against a partner from another country would be the costs of the actions, the applicability of rules and regulations over the operations of that company as well as the place where the legal actions should be undertaken.
2. What factors could work against CadMex's decision to grant sublicensing agreements? CadMex’s decision to grant sublicensing agreements may not be successful if the parties do no fully understand the terms of sealing an agreement between companies from different locations. Another factor would be the one when the companies do no agree on establishing a policy of rules that needs to be followed between both of them.
Also when regulations are different in these two countries, one of the company may need to change some activities to be legal, as it may come into contradiction with the rules from the other country. 3. When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. According to Malek (2010), international conflicts are conflicts between different nations and between people and organizations from different nation-states. It may also apply to inter-group conflicts.
In the situation mention in the question, those who prevail should be those from abroad. The local customs and laws should be modified to fit customs and laws from abroad to give a chance to companies from other countries to expand business operations locally. This would help the economy of the country. 4. How would you compare the issues in this simulation to the domestic legal issues discussed in your week one readings? How should companies resolve domestic and international issues differently?
Domestic issues may be easier to solve because they only consider the laws and regulations from one country, while international issues are more difficult to be resolved because if there are more parties involved, they need to consider each parties local rules and laws. References Malek, C. (2010). International Conflict. Retrieved from http://www. crinfo. org/CK_Essays/ck_international_conflict. jsp? nid=2306 Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.