International Ethical and Legal Issues When companies operate globally to expand their markets, they may face dilemmas that must be addressed to avoid conflicts. The types of problems many companies encounter involve legal, ethical and cultural encounters. From our example we see that legal issues in dispute resolution for international transactions can become very complex. Ethical issues regarding workers, culture and the environment are all factors that international companies must be prepared to address. CadMex Pharma and Gentura must establish a business agreement that protects the interests of both companies from issues regarding the social, legal and ethical norms of the host company. What are the issues involved in legal dispute resolution in international transactions? The process for resolving any disputes Disputes must be resolved by both companies wishing to do business together. A formal structure should be established to resolve disputes as companies work together to achieve desired goals. The political context and economic climate of the company must also be taken into consideration. Questions regarding government involvement in business and its role in decision-making should be answered. The company's country participates in generally accepted international treaties and adheres to rules such as those established by the World Trade Organization (WTO). International organizations, usually governed by treaties, help create international law. Dispute resolution issues must be agreed upon as companies seek to do business together. How the laws are applicable should be recognized and agreed before disputes arise. ...... middle of paper ...... This sustainability method allows the company to overcome some cultural barriers and gain a competitive advantage in Chinese markets. However, global companies must be sensitive to political and religious beliefs. Many companies hire interpreters to teach and provide a clear understanding of customs and beliefs. This will allow companies to have guidelines and practices in place before the hiring process begins. Through education and awareness, companies can influence changes in customs and beliefs. As long as the change becomes acceptable to the general public, does not violate local customs and complies with laws, companies conducting business abroad should also be able to exercise their customs. Works Cited Melvin, S. P. (2011). The legal environment of companies: a managerial approach: from theory to practice. New York, NY: McGraw-Hill/Irwin.