Question

describe and organisation mission statement and how it scans the environment to identify opportunities and threat

pects o X O fle user/manveer%20sidta/DownloadsHS015%20Legal%20Aspects%20c20nternationa20Businesa%20and20nterprises20Past0sam 1.13 NegousoonIST ExpTyour answer O Or UNITece wee u8UagmnS signed by Australia with countries such as Japan, Korea and China. PART B-CASE STUDY -Trade in Goods (20 points) Several automobile manufacturers from Country A are exporting large numbers of cars to Country B, taking over a large share of Country B's automobile market and putting Country B's own automobile manufacturers and workers out of business Country A's manufacturers are not government subsidised, nor are they dumping their cars at below cost. Assume that both countries are members of the WTO Discuss any remedies for Country 8 under the GATT (10 points). Would your answer be different if Country A's automobile industry is subsidised by its govemment? Explain your answer using GATT principles (5 points). Would your answer be different if Country B imposes quantitative restrictions on Country A's car exports to Country B? Explain your answer using GATT principles (5 points) He5015 Legal Aspects of Intemational Trade and Enteprise Fnal Examinon (Trimester 12017) 26/

Answer 1

1) For country B, the only remedy is to manufacture cars at a lower cost and better quality in comparison to cars being manufactured by Country A's manufacturers. Since country A's manufacturers are neither enjoying any government subsidies nor are they manipulating there price so as to be termed as unfair market practice therefore country B do not have many remedies against country A as both are the members of World Trade Organization.

It is clear from the case study that company A is simply enjoying the competitive edge over country B within all its legal limits. Country B should either provide certain government subsidies to its car manufacturers or else the car manufacturers must themselves try to improve there manufacturing process so as to improve there pricing in comparison to country A's car manufacturers.

One other way to cater this issue is that country B can employ a quota restriction on country A car manufacturers. This would restrict country A to export only a limited number of cars per year to country B. However, even though country B is within its right to employ such quota but it should be avoided as this could lead to a trade war between both countries as country A can similarly employ such restrictions on Country B's other products which have a competitive edge over country A's products.