Target has opened their first branch in Kuwait. While things are going very well, Target has run into a few issues. Target has always been a company that has supported causes related to the LGBTQ+ community. Prior to the legalization of gay marriage in the United States, Target was one of the first large companies to extend health care and other benefits to same sex domestic partners. The company would like to continue this practice for their employees in Kuwait, where there is no legal recognition of same sex relationships. Unfortunately, Kuwaiti law goes further than US law, which simply didn't grant same sex couples legal status. Kuwaiti law makes it illegal for any company or organization to recognize these relationships as well. It also legally prohibits companies from hiring any individual who would openly identify as homosexual.

Additionally, U.S. environmental law prohibits the use of factories that emit pollutants beyond a particular threshold. Target abides by these rules in the U.S., but has partnered with a Kuwaiti company for some manufacturing. Now, if Target imports goods from this manufacturer to the U.S., they can be subject to a new tariff that the U.S. Government has imposed on all goods produced in Kuwait at factories that exceed U.S. emissions standards. Kuwait has offered to object to the tariff at the WTO.

Lastly, Target is frustrated because the cost of internet access in Kuwait is much more expensive than they anticipated. The problem is that there is only one internet provider in Kuwait, Zain, and they can set the price because there is no competition. There used to be other companies, but Zain provided faster service for lower prices than their competition, and they eventually were able to completely dominate the market. Target feels that they are abusing their monopoly power, and that having a monopoly runs counter to the U.S. notion of competition.

1. Can Target justify hiring practices in Kuwait that would violate employment law in the U.S.? Can they be sued? What would the U.S. Courts say about the application of U.S. law outside the U.S.? What would the EEOC say?
2. Will Kuwait be successful in fighting the US Tariff on good produced in Kuwaiti factories? What factors will the WTO consider?
3. Can Target sue in US courts for antitrust violations in Kuwait? What would be required to prove that Zain is in violation of US law? What application would US law have on this issue in Kuwait?