International_Law

International Business Deals International business deals are complex and require a great deal of care and thought to make all contracts legal and binding and enforceable on both ends. This involves the utilization and decision on whose laws the contracts are made under and enforced by. This also requires a decision to be made regarding how disputes will be resolved and under whose guidance. I is important Prior to entering into international contractual business agreements to take into consideration the rules and laws of all countries that will be held by those agreements. It is equally as important to also consider any and all transnational governing bodies like the WTO. What to Consider When looking into what other countries to include in a business deal some of the issues that should be considered include the political stability of all countries involved, copyright and patent protection laws in all countries involved, employment laws and regulations in all countries involved, and ethical and cultural diversity matters that may arise in all countries involved. Outlining strict dispute resolution guidelines in advance simplifies conflict resolution if in the future a conflict does arise. Research into the laws of the countries obligated by the contract is vital in order to make decisions regarding the conditions of the contract and planning for any potential future conflicts. However, no matters how well researched and planned out the contract may be problems will inevitably arise and can be critical and delicate when working with different countries and issues regarding politics, culture, and laws in each. Any conflict could result in a violation and loss of the contract in its entirety and damages to either party if the conflict is not handled with care and thought. Conflict must be discussed openly and with all involved parties and all potential solutions must be given some thought and the cultural differences must be given respect taken into account when deciding on a reasonable solution that holds the best interest of both parties. The Simulation Many of the issues in international business deals where touched on in the simulation. The simulation involves two hypothetical companies: CadMex Pharma located in Tampa Florida, of which enters into a business deal with Gentura, a company based in the small developing country, Candor. The simulation walks through several events along the way of the business partnership between CadMex Pharma, Gentura and the country of Candor, that have an impact on the business operations of CadMex Pharma. The contract that these two companies get into is that CadMex will license their technology and provide expertise. In return, Gentura will give CadMex the global marketing rights to the anti-diabetic agent that Gentura has developed. The simulation walked through the process of selecting how disputes will be settled in the contract. The simulation allowed for each side to give it’s imputing for how they would like disputes to be settled. This is helpful to see both sides and obtain the most information before settling on a path and ensuring all are in agreement to minimize conflict both is the setting up of the contract and if and when any future conflicts arise. This agreement will set up for the future the course of action that will be taken if disputes are not settled between the parties smoothly and without outside help. If disputes are not settled on their own, the contract will direct how to proceed using previously settled avenues such as by referring the matter to the WTO Dispute Settlement Body, the utilization of alternative arbitration services, or in more trying cases, settling the dispute in the courts of the pre-determined country. Humanitarian Issues and Licensing Agreements Even in the most defined and structured contract situations can arise that where not clearly planned for or defined. These are most commonly political changes and humanitarian need. Humanitarian need was one of the key issues touched on in the simulation that can alter the terms and conditions of the contract. Due to a deadly viral epidemic in Candor, it was decided that best thing to do for all involved, including civilians, was grant a way to meet the immediate needs of the Candorean population. The best way to do this was to grant sublicensing agreements to other drug companies under the control and supervision of CadMex. This decision was based on the desire to attempt to deter the Candorean Governments desire to bypass the patent of ViroBlax allow generic forms of the drug to be made available in higher quantities and for less. The Candorean Government could engage in compulsory licensing as it is legal when it comes to cases of catastrophic epidemics. CadMex desired to avoid this because it was concerned that that it would be impossible to regain control of their patent rights once this happened. Would CadMex find it worthwhile to subsidize ViroBlax because the Candorean authorities may not wish to consider this option because the generic ViroBlax would be cheaper and more affordable to all sections of the Candorean population' The other two issues are the time and money involved and ensuring the quality standards of drugs produced by sublicenses. If CadMex had not worked with the Candorean Government the company could have been irreversibly damaged in the eyes of the world and could have lost a great deal of money and be branded as a company that did not value human life over profit. Employment Law The other main issue addressed in the simulation is how differences in culture and employment law and standards can come into play. In the simulation two men were suspended for not being clean shaven during a religious week that required them to not shave their beards. Because this was a lab environment having facial hair violated the contract and did not follow the standards for the lab. The action of suspending the men however was a violation of their protection under the United States employment law of which does apply even though the local employment law does not provide protection for religious beliefs. This prompted CadMex to review its policies and adjust accordingly as well as reinstate the men. Conclusion The simulation shows how challenging it can be to partake in international business relationships and how even the best lay contracts will not always cover every last issue that can arise. The simulation showed just how complex working around crisis can be and how not every legal business decision involves business and legal rights first but rather the need to make choices for the best of people ad for the greater good than what is legally right for either side to do. This can be a challenging grey area that has no clear winners but is vital for the image and survival of a company.