International Legal and Ethical Issues
International Legal and Ethical Issues
There are several issues involved in resolving legal disputes in the international business transaction between CadMex and Gentura. In every international business transaction there has to be a clear understanding of the countries environmental laws. In the first simulation it showed an oil company that invested 10 million dollars for oil exploration in Costa Rica in 1998. In 2002 only two years after the oil companies investment, the Costa Rica Government cancelled the contract because it didn’t meet the countries environmental laws. The Costa Rica Government was then sued by the oil company for 57 billion dollars, when the annual gross for Costa Rica was only 17 billion dollars. The legal dispute between Costa Rica and the oil company could have been prevented if there was a clear understanding by both parties involved of all of the potential environmental issues as well as culture issues. The first scenario shows the importance of international contracts. There are several practical considerations that CadMex must think on before developing a contract with Gentura. Gentura is located in Candore, and the country government is a dictatorship led by President Gwendoz. In a dictatorship, the President usually makes all decisions, this type of government is often referred as a Mafia style government and the leading dictator usually receives huge monetary kick-backs.
CadMex must consider several factors that may work against them by sublicensing. Contracts for the International Sales of Goods (CISG) would be the best contract agreement for CadMex, but Candore is not a part of the World Trade Order (WTO) and is not on the signatory. Candorean Regulations for Technology Import Contracts (CRTIC) is the only contract that Candore will use, and Candore would have great benefits in which some of them may be considered unethical. CadMex must also consider the fact that the current president