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State R, a country with a centrally planned economy, uses prison labor to manufacture export goods at very low cost. When State S learns this, it imposes an import embargo on these goods. Both countries are members of the WTO, and State R complains to the WTO’s Dispute Settlement Body. Assuming that a Dispute Settlement Panel is appointed to resolve this matter, how will the panel rule? Explain.

No Plagiarism

Please read materials in chapters 7 / 8 in the textbook, and outside materials as a guide to answer the questions:

International Business Law Text, Cases, and Readings (6th ed.) Upper Saddle River, New Jersey: Pearson Education ….August R., Mayer D., & Bixby, M. (2013)., ISBN 9780132718974

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Chapter 7- pg.407/407 Questions 4/8/10

WTO Import Restrictions

4. State R, a country with a centrally planned economy, uses prison labor to manufacture export goods at very low cost. When State S learns this, it imposes an import embargo on these goods. Both countries are members of the WTO, and State R complains to the WTO’s Dispute Settlement Body. Assuming that a Dispute Settlement Panel is appointed to resolve this matter, how will the panel rule? Explain.

Anti-dumping Duties

8. The Snicker Company, the largest manufacturer of Snickerdoodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture Snickerdoodles, but the market has traditionally been very small. When Snicker entered State G’s market, it undertook a widespread advertising campaign to promote Snickerdoodle consumption and to encourage consumers to try its product by publishing coupons in newspapers that allowed purchasers to buy Snicker’s Snickerdoodles below their actual cost. As a consequence of this campaign, the sales of Snickerdoodles in State G have skyrocketed. In addition, the sales of Snickerdoodles manufactured by State G firms have more than tripled. State G’s Snickerdoodle manufacturers are, nonetheless, displeased, because their market share has gone from 100 percent to 30 percent in two years. Concerned with this loss, they have asked State G to impose anti-dumping duties on Snicker, since its snickerdoodles are being sold below cost. Both State F and State G are members of the WTO. Should State G impose antidumping duties on Snicker? Explain

National Security and Public Morals 

10. Eve, a national of State A, owns the technology for manufacturing a video game called “Porn-Man” that involves the use of the latest and most advanced computer technology to show lifelike images of Porn-Man doing truly obscene things. State A is a member of the WTO and of the Coordinating Committee on Multilateral Export Controls (COCOM). State A’s government has issued an administrative order prohibiting Eve from (1) exporting the computer chips to State O (a country that is listed in State A’s export-control legislation as being off limits for all high-technology exports), where the video games are supposed to be assembled, and (2) reimporting assembled and operational video games back into State A. Eve has brought suit in a State A court to obtain the appropriate order to lift the government’s prohibition. What are the chances of her success? Discuss.

Chap 8- pg. 467/468 Questions 8/9

National Government Power over Visas

8. The faculty of Public University (PU), located in State I, has invited Karl Engels, a “revolutionary Marxist” from State J, and Bishop Biggott, an advocate of apartheid from State K, to participate in a symposium at PU. Both individuals have agreed to attend, but both have been denied visas to enter State I by that state’s Foreign Ministry. The ministry acted according to State I law, which grants the ministry authority to deny visas for reasons of public policy, public safety, or public health. The PU faculty petitioned the ministry for a waiver, but the foreign minister refused to grant it. The faculty members have now brought a suit claiming (1) that their rights under State I’s Constitution (which guarantees both freedom of speech and freedom of assembly) to hear the viewpoints of Mr. Engels and Bishop Biggott have been denied and (2) that the government has no basis on which to deny either applicant admission to State I. Will the faculty succeed on either of these grounds? Discuss.

Treaties of Friendship, Commerce, and Navigation

9. Americana, Inc., a large multinational corporation with its headquarters in the United States, has a subsidiary in Tokyo. It refuses to appoint any Japanese nationals to the senior executive posts of the subsidiary, claiming that it is specifically allowed to do so by the 1953 Japanese-United States Friendship, Commerce, and Navigation Treaty. Is this true? Explain.

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