There are several issues involved in resolving legal disputes in international transactions. Some of them include language barriers, cultural differences, customs differences, currency exchange rates, legal issues (such as foreign or domestic representation?), and the likelihood that disputes involve multiple entities, not just two.
Some practical considerations of taking legal action against a foreign business partner based in another country include some of the same things as the issues involved in resolving legal disputes. However, the practical considerations include time zone differences, language barriers, cultural differences, differences in anti-trust laws, foreign understanding of the US Foreign Corrupt Practices Act (FCPA) (Winer, K., 1999, n.p.), acceptable communication and documentation methods, and different understandings of compliance procedures.
The factors working against CadMex’s decision to grant sublicensing agreements could involve higher operating costs and losing control over quality oversight,
When the local customers and laws conflict with the customs and laws of an organization operating abroad, the local customs should prevail for the most part because nonadherence to local law or local customs all but eliminates market share, growth opportunities, and corporate trust. However, if the organization operating abroad has company missions, visions, or values that conflict with local laws and customs, then the applicability of moving into that particular international climate that opposes such needs to be carefully weighed.
I would compare the issues in this simulation to the domestic legal issues discussed in the Week One readings by stating that the domestic legal issues discussed in the Week One readings didn’t have to take into account the international context of the laws of each country, the trade agreements, the FCPA, or US boycott regulations.
Companies should resolve domestic and international issues differently in the sense that each issue not only has the intrinsic problem that needs to be solved, there are also extenuating legal, cultural, and financial considerations to take into account.