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Topic Selection and Rationale (Attempt 1 ) - Essay Example

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Intellectual property was selected as the highlight for this project due to the complexities within the WTO that often lead to stalemates or general indecision. Based on the case study, it appears that the World Trade Organization fails to meet consensus about key issues that…
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Topic Selection and Rationale (Attempt 1 )
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Topic Selection and Rationale (Attempt 1 )

Download file to see previous pages... The ability to properly define and/or guarantee protections for unique works or concepts could easily lead to stalemate if the intellectual property is governed domestically yet regulated abroad when doing business in foreign nations.
In microeconomics, comparative advantage could explain a potential stalemate when it comes to intellectual property protection. This is when a firm has the ability to produce a work or product at a lower opportunity cost than competition. An opportunity cost is when the highest valued alternative must be sacrificed to select another strategy. If one business operates in a market where there are many competitors, and are able to experience lower cost in the action, competition may be more adamant about protecting their intellectual property as a competitive tool. Because the WTO acts as an agency and forum for these discussions, it is likely that the WTO will become engaged in trying to settle the dispute. A competing company might have very high cost objectives, however they cannot lower their opportunity costs to seek a special project or product innovation. Animosities between the rival companies could cause conflict with the membership of the WTO, based on the high cost of doing business against a competing product able to avoid high opportunity costs.
In macroeconomics, inflation could also lead to problems with intellectual property rights disagreements that will ultimately involve the WTO. This is when the price of goods and services rises due to supply, finance, or money supply. Companies that are unable to compete effectively against another company that enjoys comparative advantage may also have inflationary issues arising from the cost of doing business which, in turn, affects overhead costs and production costs. The company could, at the same time, be impacted by inflation associated with international distribution. ...Download file to see next pagesRead More
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