2.3 Reflection and application tasks

Task 1: Which specific clauses would Meditech Co. Ltd. have had to formulate differently and in greater detail in its US contract (Common Law) than in a potential South Korean contract (Civil Law)? Justify your answer.

Task 2: Evaluate Meditech Co. Ltd.’s decision to enter into a joint venture in India. What alternative market entry strategies (for example pure licensing, a wholly owned subsidiary) could have been considered and what advantages and disadvantages would these have had with regard to IPR protection?

Task 3: Assume that the government of the South American country expropriates Meditech Co. Ltd.’s factory against symbolic compensation. What steps could the company take at the international level, especially if political risk insurance has been taken out?

Task 4: Develop a strategy for Meditech Co. Ltd. to deal with profit repatriation restrictions in South America. What alternatives to direct repatriation of profits exist?

Task 5: Islamic law prohibits interest. Research and describe a concrete Sharia-compliant financing instrument (for example Murabaha, Mudaraba) that Meditech Co. Ltd. could have used for its investment in Saudi Arabia.

Task 6: Discuss the ethical dilemma. Should Meditech Co. Ltd. invest in a politically unstable country that offers economic opportunities but has a poor human rights record? What responsibility does the company bear?