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Addressing International Legal and Ethical Issues Essay

Executive Summary

All business organizations are subject to laws of the government of the country wherein they have operations. Aside from making sure that they make profits, business owners need to also be aware of their social responsibility towards their buying public, abide by the laws the government has set, and uphold moral standards that are valued in places that they do business in. Moreover, they have the obligation to be proper and ethical in the way they handle business affairs.       (Cheeseman, 2007)

Ethical standards differ from one place to another. Government laws range from business contracts to employee rights, among other important issues.  These standards are dependent on the culture and traditions of a place. When doing business in a foreign country, businessmen ought to be aware of what is considered proper business conduct to avoid offending the foreign business partner. There are a lot of issues to consider. These issues include changes in laws, impact to the environment among others. This way, transactions are conducted smoothly and a good working relationship is developed. (Cheeseman, 2007)

With the advent of information technology, the way people perform many things have changed. This includes the way people do business. The convenience and the speed

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that information technology tools, such as the internet and software applications, offer have made them the new tools of choice for the businessmen of today. These technological implements, however, are not without their disadvantages. With all of the perks also come drawbacks that include better chances that corrupt practices are perpetrated through the use of the internet, among others.  (Cheeseman, 2007)

Practicing good business ethics and social responsibility is also one way by which businesses will be able to maximize their earning capacity. Without the public’s support for their products, businesses will not be able to thrive. As a result, business organizations need to give back to the public by doing their share in upholding moral and social responsibility. Business organizations can do this by making sure that their products and services are in no way doing any harm to anybody in society. They can also allot a certain portion of their funds to finance efforts to help conserve energy, keep the environment clean and support other similar efforts.

Gentura and Cad Mex Pharma

Cad Mex Pharma is US-based pharmaceutical company which deals mainly with research and development of drugs. Cad Mex is currently considering a partnership with Gentura, a biotechnology company from Candore, which is a small developing country that has very promising growth potential. With limited resources to manufacture drugs on a global scale, Gentura sought the help of Cad Mex Pharma. Negotiations are currently underway to establish a partnership between the two companies. Cad Mex Pharma intends to accredit Gentura to use their manufacturing techniques in mass producing innovative drugs.   (University of Phoenix, 2004)

As a dictatorship, Candore’s political landscape tends to make foreign investors feel a bit anxious about entering into business relations with indigenous companies. Political instability is not a desirable trait. To further complicate the deal, Candore is not a signatory to any international trade convention but is currently on its way to becoming a WTO participant.  (University of Phoenix, 2004)

The best way to deal with the Gentura – Cad Mex negotiations is to choose CRTIC  or the Candorean Regulations For Technology Import Contracts as it provides that contract terms between both companies be explicitly stated. Furthermore, with the CRTIC, with the nature of the business deal, the benefit of technology transfer to Candore makes it less likely that local government officials will insist on subjecting the approval processes to red tape as they are willing to readily approve investments that would be beneficial to the technological growth of Candore.  (University of Phoenix, 2004)

With regard to forum selection, both parties would benefit from choosing International Arbitration to preclude the inconvenience and expenses of having to go to court should problems arise.  (University of Phoenix, 2004)

Due to political turmoil and a virus outbreak, Gentura is forced to make its product ViroBlax available at a subsidized price in order help the government control the spread of the epidemic, moreover. In this situation, it is possible for Gentura to commit a breach in its contract with Cad Mex, furthermore, Cad Mex will have to endure losses. For this breach, both companies would be able to benefit if no legal action would be taken and both parties discuss alternative forms of compensation such as Cad Mex getting shared marketing rights of the other products manufactured by Gentura.

This would prevent inconveniences such as having to settle the matter in court.  Cad Mex will be able to recover from their losses and both companies will be able to continue the otherwise good business relations. For the Gentura and CadMex deal, it is necessary to include factors such as political situation, local customs, local government policies, international trade agreements and other important issues in making decisions.  (University of Phoenix, 2004)


Cheeseman, H. R. (2007). Chapter7: Ethics and Social Responsibility of Business. Retrieved July 21, 2007, from University of Phoenix : https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader.h

University of Phoenix. (2004, November 3). Addressing International Legal and Ethical Issues. Retrieved July 21, 2007, from University of Phoenix: https://ecampus.phoenix.edu/secure/resource/vendors/tata/UBAMSims/business_law1/business_law1_intl_legal_ethical_simulation.html

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