Conducting international business can be a profitable endeavor but requires a lot of tact and strategy. In international business legal issues may arise but must be resolved in order to retain the relationship. This problem includes but is not limited to changes in legislation, clashes of interest, ethical dilemmas, cultural and ethical differences.
When entering into an agreement with another country legal agreements must be drafted to protect the company interest.
Consideration must be made of the countries culture and ethical differences. The process of sublicensing can be positive for CadMex. However, the process consumes an incredible amount of time and money. Sublicensing could also violate the non-disclosure agreement. Local customs in laws can conflict with in organizations customs in laws when operating abroad. When this occurs the laws that were specified in the contract should prevail unless there is a CIGS (contracts for the international sale of goods) which is been used by default.
When issues arise alternative dispute resolution (ADR) can be used it is a means for resolving disputes between parties outside of the judicial process using one of four techniques mediation, arbitration, negotiation, or collaborative law.
Mediation is the use of a neutral party to resolve the dispute between two or more parties. Arbitration is the resolving of a dispute between parties through the use of an agreed upon party. Negotiation is when the parties have a mutual discussion and arrangement of terms of an agreement.
Domestic issues are usually easier to resolve then international issues. Domestic issues do not require the same strategy or consideration does international issues.
Domestically the laws are the same but international laws vary from country to country. Contract terms must be defined very explicitly. Sensitivity must be developed and exercised to accommodate local cultures and customs. Laws must also be clearly defined as you leaving as they are part of what can lead your business to success or failure.
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