As companies conduct business internationally there are many issues it must be knowledgeable about to operate successfully. Two issues that were explored during Law/421 in week two’s simulation were how to address legal and ethical situations that arise when conducting business abroad. When resolving legal disputes in international transactions one must be aware of international and local laws. It is also important to know the customs and culture of the area where business transactions are taking place. Prior to conducting business abroad a choice of law must be established before any conflict arises. This will yield a resolution to the conflict that will be favorable for both parties. When taking legal action against a foreign business partner based in another country one should consider the laws of that country. Laws in others countries differ from those in the United States. Also when considering taking legal action on a company, one must analyze all possible cause and effects from that legal action. Taking legal action may be the company’s right to do, but it may cause negative customer relations in the area. In the simulation, CadMex’s decision to grant sublicensing agreements could be beneficial to the company yet work against the company. Sublicensing may cause the company to be liable in lawsuits due to the negligence of those sublicensed parties. When local customs and laws conflict with the customs and laws of an organization operating abroad, the laws of the company in which it is operating in should prevail. The local laws have jurisdiction over those issues. In closing, when addressing legal and ethical issues abroad companies must consider the many effects one decision can have on their business in its entirety.