The paper 'Judicial Function of the WTO, the Product Life Cycle Theory " is an outstanding example of a business assignment. WTO normally provides integrated dispute settlement systems whereby disputes regarding the trade of services or products or the trade of intellectual property protection follow the same procedure. Therefore, this ensures that the multilateral trading system is not only secure but predictable. WTO requires that countries comply with every obligation under a WTO agreement. If for instance, a county believes that another member country is not doing so it invokes the dispute settlement procedures to help.
WTO, therefore, ensures that the proper channel is followed and implemented. This is ensuring that the two countries enter into consultation within 60 days after submitting a notice to the dispute settlement body. The dispute settlement body comprises of all member of WTO and whose sole objective is to establish a panel to listen to cases presented to it. Additionally, the dispute settlement body can also dismiss the findings of the panel or accept the findings. In addition to these, the body is also tasked with the responsibility of ensuring that countries adhere to the rulings of the panels.
However, for countries that fail to adhere to the rulings the dispute settlement body may enforce retaliation. If for example, the parties in a conflict do not reach consultation within 60 days then the WTO offers the good office of the director-general. The dispute settlement body is sometimes responsible for establishing the panel to hear the disputes. This occurs in case the parties, for instance, fail to reach a consultation and do not require the good offices of the Director-General.
Where conflicting parties fail to compose members of a panel within 20 days, the WTO through the director-general may appoint an individual to serve in the panel. This application is normally made by either party in the conflict. The Secretariat, therefore, provides secretarial services and legal advice to the board. The WTO through the panel ensures that proper procedures are followed. This is the submission of written arguments and reports preparation. Conflicting parties are the first to be issued with the final report relating to their dispute before the report is issued to another member of WTO.
Sometimes the WTO's Appellate body is asked to examine the report, this arises when for instance the parties to a conflict are not satisfied and have made an appeal. The dispute settlement body is responsible for ensuring that the losing party adheres to the decisions made by the board and the appellate body. However, trade sanctions could be imposed by the dispute settlement body, where no decision in relation to the conflict was reached. 2. The Product Life Cycle Theory tries to explain the effect of various factors such as innovation, uncertainties and economies of scale can have on foreign investments and trade in general.
The product life-cycle theory states that as a product moves through its life cycle a company is capable of engaging in direct foreign investments, shifting from exportation of its products. This is witnessed in the three stages of the product life cycle, which are; new product stage, maturing product stage, and standardized product stage. Under the new product stage, a product is produced domestically as a result of uncertainty in demand.
The maturing stage is characterised by instances whereby the company invest in facilities to be used for production. This scenario arises out of the fact that demand is sufficient to sustain the company. This theory emphasises that as export strength of a country grows, foreign production starts taking place. However, it reaches a point that the export becomes quite competitive, thus leading to importation which is equally competitive.