Methods Of Dispute Resolution And World Trade Organization

Arbitration as a Method of Dispute Resolution

Discuss about the Global Innovation Crowdsourcing Work.

The distance between two countries increases with the distance in the culture, administrative and political distance and also geographical distance. Difference in language, religion, a lack in the social networks have an impact on the distance. There is also a distance growing in cases of difference in the political association between the two countries in question. The distance between the countries also has a direct bearing which makes the relation between the two countries hostile. Some countries have a strong financial background and some countries are lacking in their finances (Chua, Roth & Lemoine, 2015). Therefore, the financial status between the countries also create distance between them. Distance is important as it helps in the convergence of tastes and needs and different tastes help in the coming together of the countries. Companies in different countries are competing against each other and these come from the difference in the GDP, the wealth of the consumers and so on and so forth. These risks that arise are mostly due to the barriers that are created by distance. The distance also has a cultural impact along with economic impact. As the distance grows, the foreign markets also suffer and the markets become significantly less attractive.

The strategic alliance is the way of reaching out to a pool of customers. This helps in strategizing the economy and also gain finances (Zoogah, Noe & Shenkar, 2015). An example of strategic alliance will be Spotify and Uber. Uber and Spotify have come together to meet their target audience and have performed a strategic alliance. The customers can enjoy a varied range of services with the help of the strategic alliance. While customers book a car on Uber, they can listen to music of their choice and that is how Uber and Spotify have met together to match their finances and help earn profits (Albers, Wohlgezogen& Zajac, 2016). This is a good way of increasing the customer base and also it ensures that the strategic alliance is placed at the right place so that both the companies can enjoy profits.

Small business companies are growing and expanding themselves and placing themselves in the international arena. By expanding into global markets, there is a growing difference between the global and the international strategy employed by the companies (Cavusgil & Knight¸ 2015). The difference in the language, the cultural background also help in the expansion. The domestic strategy is different from the international strategy and the companies use these two strategies differently. The domestic strategy helps in the global markets and all these decisions are taken by the company at their headquarters. The multinational companies who have an international background have started to operate as companies that operate internationally (Rugman & Verbeke, 2017). The international market is different from the global market and these companies work towards strategizing their economy and finances. There is also a difference in the economic scale and the economic scope in both the strategies. The global business is a strategy to maximize the strategy to place the company in the international arena. The two strategies are different in the way they place their global and international demands. One strategy is a centralized controlled strategy whereas the other strategy is a top down strategy.

Role of World Trade Organization in International Trade Regulation

The increase in disruptive practices have created a trouble and an impediment to innovation. Innovation has become a problem due to the increase in the disruptive technologies. Due to globalization, different companies are coming in the market and they are creating a trouble in case of companies which are already in the market. The companies have to constantly work towards enhancing their competition and it can only be done with the help of re-inventing technologies and also investing in new technologies (Berzin, Singer & Chan, 2015). If the technologies do not change over time, it becomes very difficult to adapt to the new growth requirements. Companies are constantly working towards enhancing themselves and also devising new techniques and plans. There is a dump in the graph of success and also it is important to change according to the needs of the new innovation. The new companies are already in the market and they are posing a threat to the old companies and therefore they are posing a threat to the old companies that have been working for a long time in the market. The managers are suffering due to the new companies who are devising new technologies and as a result they are suffering economic setback.

Choice of Law in a jurisdiction lays emphasis on the obligations of a contract that states that the law the parties have chosen as their governing law. It is also important to state that when the parties have decided on a particular jurisdiction to be their law, the court is bound to take into account the governing law of the land. This is where the choice of law comes to play to state that even if the parties are not connected to the jurisdiction of the transaction but have selected the same as their governing law, the Court has to uphold the directions of the parties to be governed by those laws (Butler, 2016). The choice of law is concerned as the governing law and it is a procedural mandate which shall uphold the law provisions which are already mentioned in the contract. The parties have the right to choose a particular law in their contract. The reason for choosing a law or jurisdiction as per choice because that will favour them in their justice. The aim is to require or direct a court of one jurisdiction to ask or direct another court to apply the laws of the selected jurisdiction (Levin, 2016).

The question to be considered is when a judgment of country be applied or recognized by another country and how are foreign judgments decided. Taking the example of a contract between an Irish company and a US company and how the judgment can be enforced. There shall be several issues if foreign judgments were not recognized by the countries who are part of the contract (Whytock, 2016). The most problematic situations arise when compensation judgments are not recognized and the domestic courts fail to apply such judgments passed by foreign courts (. The domestic judgments are mostly related to mortgage, receiver and therefore it is essential that those judgments be applied. There are certain ways of applying foreign judgments:

Garnishee is a method of applying foreign judgments that states that it is a way of deducing the wages and it is done so until the total compensation is paid. Another method is Judgment Mortgage which states that in cases when the person does not get any payment then he can go to court and also get a mortgage placed on his assets. This can be done until the entire security is fully paid off.

Contracts are generally paid fully and they sometimes reach an impasse and therefore alternative dispute resolution methods are applied which are less expensive and also they are lengthy disputes (Redfern, 2015). There are some different dispute resolution method processes that need to be planned in advance and therefore it has become very important to use commercial contracts. Arbitration is one of the different ways of dispute resolution. International commercial arbitration is a different approach of dispute resolution and the party in dispute shall refer to a third party to successfully resolve the dispute. The independent third party is called the arbitrator and he is unbiased and takes charge of the agreement and respect the terms of the agreement. The parties in a conflict submit to arbitration and the process becomes very consensual. In international commercial arbitration, the parties have the right to refer to the arbitrator and they also have the choice regarding who the judge will be. The judge who presides over the arbitration is expected to have great knowledge and skill. The process is not an expensive process and it also offers finality, that is, it helps in receiving a final decision on the conflict.

World Trade Organization started in the year 1995 and it began under the Marrakesh Agreement which replaced the GATT agreement. The World Trade Organization is termed as the biggest reform in the history of international trade and it has helped in the regulation of international trade. GATT has played a very important role in the regulation of international trade and the interests of the contracting parties have been preserved with the help of GATT. GATT has successfully implemented its role of reducing tariffs and all other trades that have been to trade (Tangermano, 2017). This has helped in the reduction of tariffs and has also liberated trade in the international forum. The guidelines that have been set by GATT have been utilized mostly, like the clause of Most Favored National and National Treatment are important which have been vital in promoting non-discrimination.

Reference

Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An organization design perspective. Journal of Management, 42(3), 582-614

Berzin, S. C., Singer, J., & Chan, C. (2015). Practice innovation through technology in the digital age: A grand challenge for social work. Grand Challenge 9: Harness Technology for Social Good.

Butler, P. (2016). Choice of Law (pp. 1025-1086). Nomos Verlagsgesellschaft mbH & Co. KG.

Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16.

Chua, R. Y., Roth, Y., & Lemoine, J. F. (2015). The impact of culture on creativity: How cultural tightness and cultural distance affect global innovation crowdsourcing work. Administrative Science Quarterly, 60(2), 189-227.

Jervis, R. (2017). Perception and Misperception in International Politics: New Edition. Princeton University Press.

Levin, J. (2016). The Hague Principles on Choice of Law in International Commercial Contracts: Enhancing Party Autonomy in a Globalized Market. NYUJL & Bus., 13, 271.

Redfern, A. (2015). Redfern and Hunter: Law and Practice of International Commercial Arbitration. Oxford University Press.

Rugman, A., & Verbeke, A. (2017). Global corporate strategy and trade policy. Routledge.

Tangermann, S. (2017). Multilateral rules for agriculture: From GATT to WTO. Handbook of International Food and Agricultural Policies, 3.

Whytock, C. A. (2016). Toward a New Dialogue Between Conflict of Laws and International Law. AJIL Unbound, 110, 150-154.

Zoogah, D. B., Noe, R. A., & Shenkar, O. (2015). Shared mental model, team communication and collective self-efficacy: an investigation of strategic alliance team effectiveness. International Journal of Strategic Business Alliances, 4(4), 244-270.