International transactions involve companies and people from different countries thus are regulated by different laws. It is therefore essential to consider the laws which would regulate these actions as this determines the authority and legality of these transactions. The jurisdiction of courts which should be used when these laws are broken should be considers as they ensure reduced conflicts of interest in the occurrence of the mistakes (Hicks & Goo, 2008). Any changes made affecting the international laws affecting the operations should be informed to the parties to ensure awareness.
Legal actions over boundaries involving multicultural countries can be complicated by the differences in laws regulating the two countries. It is, therefore, essential to involve a third party such as an international body concerning the issue which both countries are parties of. The current business relations among the companies and countries involved should be considered as it indicates the capability of the country in question to hold its promises.
Issuing sublicenses puts CadMex in a complicated situation which can involves different law suits made against them in the international trade. This is caused by the efficiency of the contract made which may be unreliable and insufficient to cover such risks. This leads to liability suits brought against the parties involved due to loopholes in the contract made (Hicks & Goo, 2008).
Establishment of an organization in a foreign country is an indication that the organization should abide with the local laws of that country. This indicates that any conflict should be resolved in favor of the country which the organization is operating in as it indicates the active laws of the land.
International issues should be handled by consideration of the two different countries concerned with the organization involving the country of establishment and that of origin. This is different from domestic issues which only consider the local rules with limited use of international laws.
Hicks, A., & Goo, S. H. (2008). Cases and materials on company law. Oxford: Oxford University Press.