International Legal and Ethical IssuesWhen businesses operate globally to expand their markets, they may face dilemmas that must be resolved to avoid conflict. The types of problems faced by many companies relate to legal, ethical and cultural issues. Our example shows us that legal issues related to resolving disputes related to international transactions can become very complex. Ethical questions regarding workers, culture and the environment are all contributing factors that international businesses must be prepared to address. CadMex Pharma and Gentura must establish a business agreement that protects the company's interests from issues related to the social, legal and ethical standards of the host company. What are the issues involved in resolving legal disputes in international transactions? The process of resolving all disputes must be resolved by the two 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 environment and economic climate of the company must also be taken into consideration. Questions need to be answered regarding government involvement in the company and its role in the decision-making process. Does the company's country participate in generally accepted international treaties and adhere to rules such as those set by the World Trade Organization (WTO). International organizations, usually regulated by treaties, help create international law. Dispute resolution issues must be addressed as companies seek to do business together. How laws apply must be recognized and agreed before disputes arise. ...... middle of paper ...... This method of sustainability allows the company to break down some cultural barriers and gain a competitive advantage in Chinese markets. However, global businesses must be sensitive to political and religious beliefs. Many companies will hire interpreters to teach and give 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, businesses can influence change in customs and beliefs. As long as the change becomes acceptable to the general public, does not violate local customs and respects laws, companies operating abroad should also be able to exercise their customs. Works Cited Melvin, SP (2011). The legal environment of businesses: a managerial approach: from theory to practice. New York, New York: McGraw-Hill/Irwin.