Essay on Addressing International Legal and Ethical Issues
There are several legal and ethical issues a company must be aware of when conducting business internationally. This can be considered a slightly more daunting task than your regular business dealings locally. Knowledge of laws, differences in culture, international laws and any political situations that may arrive are some of the factors to be aware of and consider prior to conducting international business.
When a company does decide to conduct business internationally, it is imperative that one is aware of both local and international laws. This helps to ensure that the contract or agreement entered is enforceable. In addition, it is important to understand the …show more content…
When legal conflict occurs, there is the question of whether local customs and law prevail over the company that is operating abroad. Ultimately, the local customs and laws trump the company that is operating abroad. Before entering a business agreement, a company that is operating abroad typically signs an agreement stating compliance of local laws and customs. This is the risk that the company is taking versus conducting business in their native country.
When a company is conducting business locally, they are more inept to local culture, laws, policies, and processes. However, there is still a need for governance over these practices. Even though a business might be familiar with the culture, there are still policies that might not be understood or known. Much more knowledge is required when conducting business globally. In addition to complicated business processes, international laws and cultures must be respected. It is one thing to read about another country’s culture; it is another to experience it. The difference for a company to handle domestic and international issues is the expertise involved. It might be a logical move for a company that is planning on conducting business abroad to employ local