* What are the issues involved in resolving legal disputes in international transactions? All contracts that deal with outside countries must be able to have some type of legal implementation (Melvin, 2011). There has to be some type of enforcement on the contract or it may never be resolved.
* What are some practical considerations of taking legal action against a foreign business partner based in another country?
According to (Melvin 2011); a country can stop all transactions from that business if they file lawsuit on that country.
The law of other countries must be taken into consideration when dealing in foreign business. The United States laws are only upheld within the United States borders and may not be respected in a foreign country. Contracts are only binding if they have the backing of the law in whatever county or countries they are made in.
* What factors could work against CadMex’s decision to grant sublicensing agreements? Sublicensing agreements comes into play when the organization has too many of them and does not fully incorporate sub-paragraphs.
This leaves the organization up for lawsuits if any of the contracted workers do something wrong and also makes the main organization fully liable for any damages. Even workers within the sublicensing can sue a business formed within the sublicensing agreement (Melvin, 2011).
* When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. Situations should be handles on a one on one basis. Sometimes special considerations need to be taken to accommodate certain employees due to religious beliefs.
In such cases the local laws should prevail in order to prevent a costly and drawn out lawsuit with employee unions. Negotiating and coming to an accord amongst the two would be the best option as well as revising company policy to cater to local customs and laws without losing essentials to company policy.
* 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? The issues in the simulation are faced in the United Stated everyday by many corporations. The Human resource department of each company is designed to handle such problems when and should they arise. Domestic issues are resolved easier than international issues because they are resolved according to the law of the United States. However when in international waters a corporation (even if it is American) must adhere to the laws of the country it is conducting business in. Litigation and alternative dispute resolution options will apply.
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