Your firm is a U.S. manufacturer of optic transistors (OTs) for use in robotic applications. A few

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Your firm is a U.S. manufacturer of optic transistors (OTs) for use in robotic applications. A few years ago, the United States entered into an OT trade agreement with Asian countries reducing tariffs on most OTs made worldwide. Over the past two years, foreign imports of OTs have risen by over $100 million per year, and now account for 60 percent of the U.S. market. During this time you noticed a drop in your firm's share of the U.S. market for OTs from more than 25 percent to less than 20 percent. In addition, your firm's total sales are in decline, its inventories are at their highest levels, and you have had to postpone hiring new employees. One of your better customers informs you that it can purchase comparable OTs for 25 percent less than yours from a supplier in Taiwan. Furthermore, you learn that the government of Taiwan assists OT manufacturers by rebating taxes on the value of OTs they export. To complicate your problems, you have been experiencing difficulty cracking export markets, and countries where robots are assembled, such as Korea, Singapore, and Taiwan, have been restricting your firm's imports through a maze of complex regulations. Also, to receive import licenses, these regulations require you to disclose important manufacturing and design techniques. You are also concerned that your design patents will not be protected there, because there is no enforcement of Korean patent protection laws. Korea has imposed quotas on OTs that make it virtually impossible to export to that market.
Considering your work in the last three chapters, what remedies are available to your firm under U.S. law that would help protect its U.S. market? What are the available remedies that the U.S. government has to help improve market access to your customers who manufacture robots in Asia? What factors (economic, political, or other) will affect the outcome of the case? How might these legal implications affect your global business strategy? Discuss.
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International Business Law And Its Environment

ISBN: 9781305972599

10th Edition

Authors: Richard Schaffer, Filiberto Agusti, Lucien J. Dhooge

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