Chapter 7 from international business law

Question one

The custom valuation code was implemented during the Uruguay round. It matches the system used by WTO counties to rate goods. The main aim of this rule is to provide equity in trade. Two types of methods are used to value the goods. These methods include primary and fallback. The primary method takes into account the transaction costs. When goods pass through the boundaries from one state to another, they incur tariff charges. In collecting the import tariff, state A will consider the transaction cost. The first step in accounting for these costs is to look at the actual price paid at the time of exporting. Other costs to be considered include commission fees, license fees, royalty charges and the packaging costs. If the state is not able to value this, then the fallback method can be applied.

Question two

The international laws have provisions for dumping. However in this scenario, state J is not dumping there goods in state K. Additionally, state J is not receiving any form of subsidies. State K can still conduct investigations to find out why there industries are not doing well. However, if the investigations do not show any form of dumping, then state K is banned from imposing anti-dumping duties by the law. A good option would be for the two states to hold a meeting to discuss the issues.

Question three

State D has established unjustifiable discriminations towards State V. Both states have the same circumstances of growing rice. The decision made by State D is unfair to its citizens and other nations. The law also forbids the implementation of laws that show favoritism against other countries. Any policies preventing citizens from consuming products from foreign countries is forbidden.

Question four

By using prison labor, State R is providing subsidies to the export industry. When taken before the Dispute Settlement Panel, the panel will recommend that state R should withdraw the subsidies. If State R fails to withdraw, State S is allowed to impose the countervailing duties to offset the subsidies.

Queen five

International laws have provisions for hygienic and phytosanitary measures. This clause allows members to protect animal, plant and human health. However, this cannot be done with the aim of hindering international trade. In order to implement this rule, a member should be able to produce scientific evidence. The producers in State F have been using the stimulants for a while and there is no evidence to prove that the stimulant has any effect. State E should therefore not impose any restrictions.

Question six

The countervailing duty against state H should be imposed. This is because the export manufacturers in state H are receiving subsidies from their government. The industries have taken advantage of the subsidies they received and decided to export to other countries. The industries in State I have incurred injury. These subsidies can be categorized as prohibited subsidies. To remedy this effect, the two states must first consult. If this consultation is fruitless, then the matter can be taken to the Dispute Settlement Board. The state will be required to withdraw the subsidy. If it fails to do so, then a countervailing duty can be imposed.


Question seven

The first step that state F should undertake is an investigation. This investigation is done to find out if State F has incurred injury from the sale of snicker doodles imported from state G. Furthermore, the snicker doodles are being sold at a low price. This is evidence of dumping. The international law allows state F to impose antidumping duties once the investigations show that these claims are true.

Question eight

International law forbids the exportation of artwork. Artwork falls under the category of cultural artifacts. Mrs.Yokum will not win the case. This is because she lacks the backing of the state concerning the export restrictions. Gotham city specified that the bidders should only be citizens.

Question nine

By state C charging a low nominal fee, it is subsidizing the lumber industry. The lumber industry in state U is experiencing injury because of the products being exported by state C. The law prohibits subsidies. State U is therefore entitled to pose countervailing duties against State C because of the injury suffered by the industry. The reason why the countervailing duties should be imposed is to counteract the effect of the subsidy.

Question ten

State Z has adopted a technical policy that affects other states. This policy prevents other states from exporting automobiles into their states. The technical barrier of trade prohibits state Z from adopting any policies that create pointless impediment. All products that come into state Z from other states should be accorded equal treatment. The law requires state Z to provide mechanical backing to the newly industrialized states.

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