Topic Selection and Rationale (Attempt 1 ) - Essay Example

RUNNING HEADER: Intellectual Property Rights Intellectual Property Rights BY YOU Intellectual Property Rights 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 impact domestic and international businesspersons. Intellectual property is best defined as proprietary rights allowing a creator of an invention or concept the ability to reap financial benefit from their unique works, copyrights, trademarks, or patents (WIPO, 2008).

Intellectual property rights protect the original user from having their work duplicated and sold/exploited for profit. 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. In this case, if the business feels a threat to its intellectual property while also facing inflationary environments, the WTO might be coerced to examine tariffs, cost reduction for mutual product exchanges between countries, or other trade-related agreements. A business impacted by inflation has lower comparative advantage, even if the products are sold in similar markets, when they experience progressive increases in the price of manufacture or sales.

In this case, the WTO could lead to a stalemate if membership is unable to achieve mutual agreement about methods to reduce inflationary costs and also appease the party seeking intellectual property protection. The WTO must ensure that trade moves predictably and smoothly (WTO, 2009).ReferencesDeardorff, Alan V. (1997). “Benefits and Cost of Following Comparative Advantage”, The University of Michigan. Retrieved July 15, 2012 from http://www.fordschool.umich.edu/rsie/workingpapers/Papers401-425/r423.PDFWIPO. (2008).

“What is Intellectual Property?”, World Intellectual Property Organization. Retrieved July 16, 2012 from www.zis.gov.rs/upload/documents/pdf_en/pdf/What%2520is%2520IP_WIPO.pdf+%22intellectual+property%22+pdf&hl=en&gl=us&pid=bl&srcid=ADGEESiDXktmYKHvuqSxMghXec-28pxGnDGhZiPTSSQYTsDvECuuKyeEQlG8I7K0blRcwiQxRTixWyyXBJXbE_vRqpeRL25gXa6vXqhsenV6GUdhUY7VHhxAzyhbe7cl3zL1hNv9G92O&sig=AHIEtbQ2qjxL0nId3cAFHfdt4Jpu-rPVIAWTO. (2009). “The World Trade Organization – The Multilateral Trading System”.

Retrieved July 16, 2012 from www.wto.org/english/res_e/doload_e/inbr_e.pdf+%22intellectual+property%22+WTO+pdf&hl=en&gl=us&pid=bl&srcid=ADGEESicxUe93dCiESJ0mwJLdnIn1DqVGXtvsvpfgLB71Tr_k9pZJquZiE_DdVraRwAPIhkymRJFVWgU6M5_02GyW5eWTrWQKKiVEyRJkF6GmB4lmmCiVbwWgwkUj8y9kt-AGNa2WbQP&sig=AHIEtbQDCmBv9xchH75PBU1wE0DtC_g4FQ