The political factors which directly affect the USTR decision include the pressure exalted by private sector actors agreed with the economic downturn, and the understandings of the US government that came with it. Additionally, the USTR decision should enjoyed the positive trade balances and significant exports that were mainly US based, so these sections were well modeled to have a significant domestic influence (Schaffer, Agusti, & Dhooge, 2015). This Company can effectively leverage their dominant market situations to enterprise trade-related issues and inspire policymakers at the highly powerful US executive branch to have economic power away on their behalf. This US Company was in its despair at its apparent demise, all too willing to act, by whatever means necessary.
Section 301 is basically used in acquiring changes in the international laws is immense when exercised against ELDCs (Schaffer, Agusti, & Dhooge, 2015). Different countries are often at the economical sympathy of economically more advanced countries, particularly the US as it has an enormous import market. They have no special but allow to US anxieties in two-sided trade agreements and autonomous US action.
- b) Management thinks that the Japanese government should require distributors to agree to import a given quantity of U.S.-made products in a year’s period. How would the Japanese government mandate this? Do you think the Japanese distribution system or its keiretsu practices can be reformed? What other remedies or sanctions might be appropriate in this case? What is the likelihood that the threat of sanctions by the United States will affect the Japanese position? Given the history of U.S.-Japanese trade relations and the authority of the WTO, what do you think is the likely outcome of this case? Based on your study of the last two chapters, what provisions of the GATT agreement, if any, might apply to this case?
GATT’s Article 24 allow this type of county trading arrangements to be set up as a singular exception, delivered assured undecorated criteria are met. In certain, the provisions should help trade flow more easily among this country in the group without obstacles being elevated on trade with the outside world (Schaffer, Agusti, & Dhooge, 2015). In other words, local integration should accompaniment the mutual trading system and not threatens it.
- c) Are the market share statistics relevant to your case? What other data or information will be important?
The Uruguay package to be improved as a whole or the US would walk away from the agreement. This is basically the ample threat to this Company who were reliant on businesses that the country could offer. In any case, as the US was persuading a adequate number of countries into accepting its ideal of IP through mutual talks, there was less confrontation to their proposals (Schaffer, Agusti, & Dhooge, 2015). The US used Section 301, backed by the economic power exercised by the US market, to bring the Uruguay Round to a conclusion which was possibly more successful than it had fictional.
Chapter 11 – page 312
Considering your work in the last three chapters, what remedies are available to your firm under U.S. law that would help protect its U.S. market? What are the available remedies that the U.S. government has to help improve market access to your customers who manufacture robots in Asia? What factors (economic, political, or other) will affect the outcome of the case? How might these legal implications affect your global business strategy? Discuss.
The argument of this case shows that the US government has to help the market through the economic effect of the use of robots has focused on the effects in Asian countries. Idealists state that any opposing possessions will be short-lived and that robots may support stunned slowdowns in efficiency growth and escalate worker income and well-being (Schaffer, Agusti, & Dhooge, 2015). Worriers point to the quick pace and growing opportunity of new technological advances, and government that, due to their remembrance, robots may need only a small number of improved skilled workers for their process, relatively than the constraint for large numbers of low skilled employees that completed previously technical advances such as the steam engine.
Though, economy-wide properties are slight. The relaxed pace of restoring may partly be clarified by desultory investment and inactive aggregate demand more normally. In addition, developed states now lack the supplier systems that some Asian countries have constructed to complement meeting activities. Lastly, offshoring endures to take place, and while labor-cost disparities remain a factor in the decision of firms on where to discover production, particularly of goods with a high labor satisfied, demand factors such as the size and growth of local marketplaces are attractive increasingly significant determinants (Schaffer, Agusti, & Dhooge, 2015). This elaborates that the making of labor-intensive manufactures designed for quickly growing markets in great developing countries that have domestic making connections is unlikely to be restored. The indication also shows, however, that where restoring to Asian countries has happened, it has dropped short of probable reindustrialization belongings. Efficiency differences may arise because some firms choose to yield in more technology-intensive methods, for example by arranging more robots than other businesses. This may make them adequately reasonable to begin transferring. Such effects may be protected by combining robotize with other new automation machineries, such as three-dimensional printing.
Chapter 12 – page 346 – questions 1 and 2
1- Generally speaking, what factors will determine the U.S. tariff rate on your tents?
Generally speaking, the average tariff rates are mostly less than 20 percent in most states, although they are frequently relatively a bit higher for agricultural merchandises. In most of the countries, regular tariffs are less than 10 percent and often less than 5 percent. Moreover, the less-developed countries preserve higher tariff obstacles, but many countries that have freshly joined the WTO which have reduced their tariffs significantly to gain entry (Schaffer, Agusti, & Dhooge, 2015). Countries also appliance quotas, import licenses, unpaid export restraints, export taxes, transfer subsidies, government gaining policies, domestic satisfied rules, and much more. In totaling, there are a change of domestic guidelines that, for large economies at least, can and do have an influence on trade flows. Moreover, the other issues which affect the tariff are their regulations, restrictions, or disablements to trade, distressing both imports and exports, would be arrested using any of the average tariff actions (Schaffer, Agusti, & Dhooge, 2015). However, these nontariff obstacles can have a much superior effect on trade flows than tariffs themselves.
2- To import the tent at the lowest rate, what class and kind of tent should it be? What should be its“principal use”?
This lower rate of tariffs is referred to as protection, or protectionism. Because tariffs decrease the cost of importing products from abroad but not from domestic firms, they have the effect of defensive the domestic firms that compete with imported products (Schaffer, Agusti, & Dhooge, 2015). These domestic firms are usually called as import competitors.
Schaffer, R., Agusti, F., & Dhooge, L. (2015). International business law and its environment (9th ed.). Stamford, CT (USA): Cengage Learning.