Week2 Paper
International trade can raise a lot of issues. Something so complex requires proper knowledge awareness. The conflicts that can arise in international trade can vary, legal disputes being one of them. When companies decide to do business internationally a contract is drawn. A legal dispute can arise if the contract is broken in any way. In the “Addressing International Legal and Ethical Issues” simulation Cadmex opted out of taking legal actions when the contract was breached do to Gentura unforeseen issues. A huge issue in resolving legal issues can also be the difference in laws in each country. The cost of resolving these issues can cost more then a company can afford. A practical consideration for taking legal actions against a foreign business partner could be to consider the need for legal action. Gentura unfortunately had a viral outbreak and the demand had risen extremely. Gentura needed to lower the retail price for the vaccine which was breaching their contract. Something such as this should be considered when considering taking legal action. The viral outbreak is more important then the contract and the contract can be adjusted. A way to try and avoid legal issues could be to clearly discuss the law that will govern the business decisions. Some factors that could work against CadMexs decision to grant sublicensing could be the amount of manufacturing that is done. Genturas demand could decrease causing less production, or marketing. When customs and local laws conflict with the laws of the organization the customs should prevail. The area of which the business is ran should be able to make exceptions according to the area. The customer and employees should always be made happy. If a Muslim can not wear their head pieces during work they may be offended. Things such as that can cause someone to loose employees and customers. It’s unfair to tell someone that cannot follow their customs if it’s not affecting the business. During week one readings and week two simulation, both scenarios had to deal with deciding the proper course of action due to different laws in each country. Companies should handle domestic and international issues with the same care. International conflicts can be difficult but looking closely at both countries laws and knowing which laws apply to the business is a great help.

Work cited
University of Phoenix. (). Addressing International Legal and Ethical Issues [Multimedia]. Retrieved from University of Phoenix, Law 421 website.