Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Interantional Business - Essay Example

Comments (0) Cite this document
Facts: The judicial body of the court is the World Trade Organization (WTO) and its jurisdiction that spans through the practice of decision making by consensus followed under the GATT 1947 (August, 2004). Through the WTO and consensus, the WTO can make decision by votes if a consensus is not reached…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
Interantional Business
Read TextPreview

Extract of sample "Interantional Business"

Case 7-2: Japan-Taxes on Alcoholic Beverages Facts: The judicial body of the court is the World Trade Organization (WTO) and its jurisdiction that spans through the practice of decision making by consensus followed under the GATT 1947 (August, 2004). Through the WTO and consensus, the WTO can make decision by votes if a consensus is not reached. The countries involved, Canada, the European Union, The United States and Japan are members of the WTO. One of the structures of the WTO is in the dispute settlement body and trade policy review, as it would be applicable in this case. The dispute settlement body through a panel or "Dispute Settlement Panel" can monitor, implement rulings and make recommendations should a dispute arises. The panel should act objectively while conforming to the WTO agreements in finding a solution that would resolve the dispute (August 2004).
Procedure: The facts in this case arose from the World Trade Organization (WTO), Dispute Settlement Panel, in which several countries that included Canada, the European Union, and the United States alleges that Japan imposed lower taxes on shochu (locally produced alcoholic beverage) than other imported alcoholic beverage, like vodka in violation of Article III, paragraph 2, of the 1994 General Agreement on Tariffs and Trade (August, 2004). The case reached this point based on the report by the panel claiming that the GATT Article III.2 is inconsistent with the Japanese Liquor Tax. The GATT Article III.2 indicates that a product imported should be subject directly or indirectly to internal taxes or other internal charges in excess of those applied, like domestic products (August, 2004).
Issue(s): The legal issues surrounding this case begins with the recognition of the Article III.2 where it states, "so as to afford protection" as depicted in Article III.1 (August, 2004). Based on this argument, the panel made reference that according to "the aim and effect test" the complainant in this case has the burden of showing not only the effect of a particular measure but its aim. On the other hand, the United States referred to the "aim and affect" applicable to origin neutral measures, which the panel rejected since it is not included any of the Articles III.:1 or III.2. The panel decided that it would be up to the complainant to produce prima-facia evidence and have the defending party rebut the claim. The panel also realized that the term like products appears in various GATT provisions; therefore, agreeing that it should be interpreted on a case-by-case basis. In this case, the panel was able to find that shochu, vodka did share common physical characteristics, and that a previous decision had been made in a 1987 report. Furthermore, the panel proceeded to examine whether vodka is taxed in excess of the tax imposed on shochu under the Japanese liquor law (August 2004). According to the WTO, members are free to choose any system of taxation provided that they do not impose on foreign product taxes in excess of those imposed on domestic products.
Holding: The decision was that the tax imposed on vodka was in excess of the tax on shochu. Japan, therefore was in violation of its obligation under Article III.2. Also, the panel discovered that shochu along with whisky, brandy, rum and gin are directly competitive and since Japan is not taxing them they are in violation under Article III.2, the General Agreement on Tariffs and Trade 1994 (August, 2004). Since Japan was held accountable, they were instructed to bring the liquor tax law in conformity with the General Agreement on Tariffs and Trade 1994.
Reasoning: The rationale behind this decision by the WTO, "Dispute Settlement Panel" was due to the result of the testing where vodka was taxed at 3,777,230 yen per kiloliter and shochu at 155,700 yen per kiloliter, considerably higher. Also, the panel was following the benchmark in Article III.2 in the first sentence relating to internal taxes on a foreign product should not be imposed in excess of those imposed on a domestic product. The panel also noticed the argument made by Japan based on the methodology that vodka was tax higher based on the higher volume of alcohol than shochu. Although, the panel noticed Japan's problems and discrepancies in calculating such data, which makes the argument inconclusive in substantiating Japan's argument. The panel also noticed Japan's intention with their tax price ratio being much lower on domestic spirits, whisky and brandy; making it more difficult for cheaper imported brands such as whisky, brandy and spirit to enter the Japanese market and maintain a competitive advantage. Lastly, the panel looked at the contested legislation where there were no indication that the purpose was to maintain roughly constant tax price ratio and rather a rationalization act by Japan, in which they could not guarantee that the tax price ratio would be maintained.
Concurring/dissenting opinions: This case is important since it outlines the problems that could arise with an imported product and the internal taxes that could be imposed. Also, the decision by the WTO is significant in the international business and countries of the world, which are either part of the WTO or affiliated to abide by their decision making process. For a business manager, this is significant in case a rise on foreign tax could offset the market and revenue would decrease as a result. Also, as a business manager you could make reference to the judicial body that made the decision on a particular product that could be similar to other products being sold from the host country. Therefore, decisions made today on a particular case could be used as a case law for future dispute settlements.
Reference List
August, R. (2004). International Business Law: Text, Cases, and Readings (4th edition).
United States: Prentice Hall. Read More
Cite this document
  • APA
  • MLA
(“Interantional Business Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Interantional Business Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Interantional Business Essay Example | Topics and Well Written Essays - 500 Words)
Interantional Business Essay Example | Topics and Well Written Essays - 500 Words.
“Interantional Business Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Interantional Business

Business to Business Marketing

...?Business to Business Marketing Q Other than personal selling, analyse the other marketing communication tools that CCS can use in order to win new business. Recommended which communication tools are likely to be the most productive. Justify your answer. A.1 The process of marketing communication is considered as a tool which helps the different companies whether working on to market its products and services to both businesses and consumers. Moreover the tools of marketing of marketing communication helps the company to effectively communicate its brand and marketing ideology to a large number of consumers in both the existing and new markets. The company under question Cloud Creative Solutions Ltd. is found to work more based on the tool...
12 Pages(3000 words)Assignment

Business to Business

...?Business to Business Table of Contents Introduction 3 Relevant Literature 4 Discussion 10 Suggestions for future research 12 Conclusion 13 Reference14 Bibliography 15 Introduction Trade or business has always been one of the vital factors that have regulated the growth and development of any civilization. It has not only helped in the advancement of civilization but also been instrumental in the process of globalization. However, with the passage of time, the process of globalization and modernization has brought significant changes in the social, cultural and economic aspects of human race. The most significant change can be observed in the field of technology which has dramatically altered and influenced the business activities1...
9 Pages(2250 words)Assignment

Business to Business Marketing

...? Business To Business Marketing Introduction Business to Business, also popularly known as B2B, basically refers to the commercial transactions between two organizations. Business to Business marketing is concerned about selling or purchasing of goods or services with a motive to support the operations of other firm or to support production of other firms’ products or even for resale purposes. It is worth mentioning here that an organization which is involved in Business to Business operation produces goods that is further used as the raw materials or helps the other organizations (customers) in their manufacturing process. For instance, bottle manufacturing company supplying bottles to soft drink producing company which is further used...
4 Pages(1000 words)Term Paper

Business to Business Marketing

...? Business to Business Marketing Table of Content Answer1 3 A)Advantages and Disadvantages of trading block 3 Advantage 3 Disadvantage 4 B)Influence of trading bloc in B2B business 4 Answer2 5 A)Concept of added value in B2B market 5 B)Difference of B2B market and B2C market 7 C)Example of B2B and B2C market 9 Answer3 10 Difference of pricing strategy in B2B and B2C market 10 Supplier are the price makers in geographic market segmentation 12 Referencing 13 Answer1 A) Advantages and Disadvantages of trading block Advantage A trade block represents a group of countries who make an agreement among themselves that they will not trade with the countries except the member countries. It is an economic integration has some significant economic...
13 Pages(3250 words)Essay

Business to Business Technologies

...Business to Business Today, most of the established companies across the globe practice Business to Business (B2B) technologies with intent to enhance the speed and accuracy of their business transactions. In the opinion of Lytras et al (452), applications that modern businesses use involve B2B technologies like web services, integration brokers, and ESB’s. The following part of the paper will describe how B2B system can be effectively implemented in pastry business. The web services are widely used as a B2B method in modern business houses in order to take advantages of the highly developed technologies. The application of web services enables organizations to meet its various technical needs in the supply chain. It helps firms...
2 Pages(500 words)Essay

Business to business marketing

...?Running Head: Business-to-Business Marketing Business-to-Business Marketing [Institute’s Business-to-Business Marketing MARKETING COMMUNICATION TOOLS The business world employs a diverse range of marketing tools to promote their company and products and now this section will include discussion of a few to allow CCS to select the best out of them. These may include use of websites, brochures, and mailing (Armstrong & Kotler, pp. 23-29, 2008). The basic aim of using these marketing techniques is to achieve higher and higher sales, thus, making it all the more important for company’s success. This also emphasizes the importance of communication techniques, so much, so that the researches show that a good product can miserably fail...
12 Pages(3000 words)Essay

Business to Business

...Business to Business Assignment 1 Introduction Business to business or simply B2B indicates a commerce system where transactions take place between business houses. Under a B2B system, parties involved can be a manufacturer and a wholesaler or a retailer and a wholesaler. As compared to business-to-consumer and business-to-government transactions, the volume of B2B transactions is very high. Evidently, the fast growing e-business sector has increased the volume and significance of B2B e-business transactions. With the fast growth of internet, many world’s leading business organizations have begun to engage in B2B transactions online., the world’s largest online retailer, has developed improved mechanisms for promoting its B2B e...
8 Pages(2000 words)Essay

Business to business marketing

...? BUSINESS TO BUSINESS MARKETING Table of Contents Introduction 3 The Sales Force and Value creation 4 Retention Engagement Theory (RET) 5 Service Dominant Logic 5 Construal-level theory 6 Cultural models of value perception and experiences 6 Conclusion 11 References 13 Introduction Business is an integral part of life since it ensures that customers obtain the services and products they want and need. To diversify the means of ensuring that they can be able to provide the goods and services that are not within their reach so as to retain their customers, businesses had to device ways to meet their objectives and goals, thus business to business marketing emerged as a classic method to meet this. Blocker et al., (2012) asserts...
11 Pages(2750 words)Essay

Business to Business Marketing

...Business to Business Marketing and Section # of QUESTION Personal selling is one of the tools used in the promotion mix which is used by the organizations in their marketing campaign. Sales force is employed by the organization to sell its goods and services to the business customers as well as the end consumers. Ariel Plumbing Services (APS) has decided to use sales force for the promotion of their plumbing services in the eastern region. The intention of the directors of APS is to personally communicate their services to the prospective corporate customers through employing the sales force. The sales force acts as a critical connection between the organization and its customers that is why APS should also employ sales force...
9 Pages(2250 words)Assignment

Business-to-Business Marketing

... SID: COMPANY OF REPORT Contents 0 Business to business Marketing…………………………………………………………….4 2.0 Introduction: 4 2.0 Marketing communication tools:  4 2.6 Conclusion: 6 Introduction: 7 3.3 Conclusion: 10 Introduction: 10 4.0 Relationship variables and business networks 11 5.0 Conclusion 14 Bibliography 15 Business to business relationships, 2000, retrieved on May 2, 2011, from 15 ‘Choose and manage an advertising agency’, n.d. retrieved on May 2, 2011, from 15 Debra, 2007, ‘Marketing for B2B vs. B2C – Similar but Different’, Masterful Marketing, retrieved on May 2, 2011, from http...
11 Pages(2750 words)Case Study

Internal and External Environmental Analysis for the Bakery Business

Liberalization of foreign investment and technology policy of the government is supportive of establishing industrial units in the country.

Threat: The UK food regulatory authority is planning to enforce the EC Regulations relating to food labeling. The labeling requirements under the new regulations will affect the food industry as the suppliers will be legally obliged to disclose the GM content of foods to the caterers. Thus business firms in the bakery industry also will be effected through the exclusion of flexible manner of labeling arrangements in the case of flour confectionery involving GM Soya or maize. (Genetically modified and novel foods (labeling) (England) regulations, 2000).

Trend: The new subs...
6 Pages(1500 words)Case Study

Evandale's Business Plan

Evandale’s mission would have a strong impact on the company’s later brand development.
When a company determines its mission and its vision, it needed to determine its objectives to accomplish that vision. I did not see the objectives—where the company was heading through in the presentation. A clear objective would have enabled me, as an audience to also picture where the company would want to go and would serve as the benchmark for me to assess the later strategic choices the company would state in the presentation.
According to the slides, the potential demand for caviar and the sturgeon products are “100x” bigger than the current supply. I would have wanted to see a reliable source for...
7 Pages(1750 words)Case Study

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages(1500 words)Coursework

Business Etquette for Business Communications Course

Who wants to give a guess? How about you (pointing at someone in the audience), yes, what is your name? Adam? What do you think, Adam – Money, Machines, Management, and Manpower? Why do you think so? And how about you, ma’am (someone else in the audience) – do you agree with him?

I think we are all in agreement: you could have Money, Machines and Management, but without Manpower, you cannot have a business. And unless you have good Manpower working well together, you cannot have a successful business.

Do people work well together naturally? Those of you who are familiar with office politics will say, “Of course not!” You are right: left to themselves, few people work well toget...
7 Pages(1750 words)Speech or Presentation

Business Information Systems

...Club IT - Part Three of Phoenix BIS 219 Introduction to Business Information Systems Club IT – Part Three _________ _________ DATE ________ Table of Contents Table of Contents 2 Abstract 3 Overview 3 Business background 4 Current Technology Structure of Club IT 5 Problem Assessment 5 Club IT Business Goal and Strategy 6 Assessment of Needs 7 IT Solutions for Club IT 8 Decision Support Systems/ DSS 8 Customer Information System 8 Data Mining for Business Performance 9 Enterprise Resource Planning 10 Supply Chain Management 11 Customer Relationship Management 11 Conclusion 11 Bibliography 12 Abstract Club IT is a nightclub that is currently operating with the traditional technology structure. Club IT nightclub is most popular club in its...
8 Pages(2000 words)Case Study

Business Administration

...Master Business Administration – Pre Admission Essay Please describe your main interests and leisure activities, and any other experiences or involvement that has significantly influenced your career or personal development. 100 Words I was born in India where Cricket is played across the country. I received my inspiration and motivation to play this game after India won the 1983 World Cup Championship. I have played this game representing my school and college in various tournaments. During my leisure time I watch the television. The channels that I generally watch are the sports, movies, and entertainment ones. I also have an interest in the technological gadgets. During my childhood, computers were the only gadgets which influenced me...
6 Pages(1500 words)Essay

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages(3000 words)Business Plan

The Main Threat to Small Business

When it comes to reliability factor big businesses are able to sustain because of their track record. Big businesses are able to pacify their customers using their past successful track records.
Nowadays most of the business opportunities and orders are posted online. This means that business providers need to be well integrated with supplier systems through online facilities. The infrastructure of the business model needs to be updated. But this is not an easy task for small businesses. E-based procurement is possible only with a well-maintained network on the internet. This requires a lot of financial and technical necessities which could not be supported by small businesses. On the other hand, Big businesses are well equip...
8 Pages(2000 words)Assignment

Business Sustainability and Society: Coca-Cola Company

...Running Head: Business Sustainability & Society Business Sustainability & Society [Institute’s Business Sustainability & Society Introduction Since centuries, ethics has been a crucial and significant component of the human societies that contributed enormously in the creation of norms and values through religious influences, as well as through contribution of intellectuals and philosophers in the society. Unfortunately, nowadays, it is an observation that individuals, organizations, and even nations have commenced to overlook the phenomenon of ethics in their practices, specifically in the business sector that has become the major stakeholder confronting criticisms related to ethical practices. Critics (Crane, pp. 23-29, 2007) argue...
10 Pages(2500 words)Case Study

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages(1750 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Interantional Business for FREE!

Contact Us