QuestionQuestion

Answer the following questions:

• What are the issues involved in resolving legal disputes in international transactions?
• What are some practical considerations of taking legal action against a foreign business partner based in another country?
• What factors could work against CadMex's decision to grant sublicensing agreements?
• When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
• 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?

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The complexity of international operations gives way to an arena of very many disputes. Chow and Schoenbaum (2005) attribute this to the different laws that govern different countries. The various legislations presented in such cases prove to be hard for all the involved parties. This is because they all happen to be unfamiliar with the laws of the other state. The other problem is that in case of two parties as in the simulation, both sides involved want their cases heard in their preferred courts. This is made evident by the arguments presented by Mrs. Vali Sanam and Mr. Jack Brandt. In this case scenario, the government of Candore is the primary stakeholder of Gentura. The presence of a non-independent judicial system means that a lawsuit between Cadmex Pharma and Gentura if held in Candore, would be biased.

There are quite some considerations that a company should make prior to taking legal action against a foreign-based partner. First and foremost, a company has to consider the judicial and political status of the country (Chow and Schoenbaum, 2005). In this case, Cadmex Pharma thinking to sue Gentura in their country is a waste of resources....
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