INTERNATIONAL LAW Essay Example | Topics and Well Written Essays - 2500 words

INTERNATIONAL LAW - Essay Example World Trade Organization (WTO) Agreement of Subsidies and Countervailing Measures (ASCM) is a practical example of hard instrument model of international laws directed at regulation of subsides. A subsidy has been defined concretely to include financial support as well as price support extended by a government that creates an advantageous situation for certain industries. Alturai and Benares are neighbouring countries and currently both hold membership in World Trade Organisation. Alturai is facing recession in its steel industry so consequently, the government has formulated new economic policies. For instance, the government has extended and assured constant supply of iron that is the primary raw material for manufacturing steel. The stable and consistent supply of raw material will enable the steel industry to boost production. Additionally, the implementation of price ceiling is a significant incentive as suppliers will be able to reap the maximum possible profits. The element of increased profit will induce new suppliers to join the industry, prevent the steel industry from crashing, and ensue in more employment opportunities. The policies will also accelerate exports as the government has sanctioned to give credit equivalent to payment of custom duty for exports of steel. Lastly, the government being well aware of the need for innovation and cost competitiveness in the globalized market, has granted monetary assistance equivalent to 1% of sales value to be invested in research and development. Investment in research and development is imperative to ensure survival in today’s volatile, consumer oriented and globalised markets. Firms no longer have to only deal with domestic competition but also take on international competitors. Therefore, it is integral to explore technological opportunities. Foreign exchange earnings from exports are one of the fundamental macro-economic aims of a country. Hence, escalating exportation is not only fruitful for dom estic industry but for foreign exchange reserves as well. According to WTO SCM agreement, a subsidy encompasses three basic elements: a monetary contribution, by a government or public organization and provides a benefit. All of the stated criteria must be met for any financial contribution to be deemed as subsidy (International Trade Centre, 2009 b). Although various kinds of government incentives that do not actually involve financial contributions being made, however these can be thought as subsidies as they undermine competition. The US-Softwood Lumber IV case clearly states in its judgement that subsidies can be direct as well as passed indirectly in order to benefit certain parties. However, the SCM agreement demands that a financial contribution is a prerequisite for subsidy such as grants, loans, guarantees, fiscal incentives. Secondly, the contribution has to be made by or at the order of the government or a public entity within the country. Obviously, a subsidy must prove beneficial for the interest of the recipient; sometimes the benefit is easily identifiable whereas in other instances, it can be complicated (Macrory, Appleton, & Plummer, 2005). The EC-DRAMs Chips case is a clear reminder that a subsidy passed to only 6 out of 200 firms is enough to be labelled as a subsidy established under specificity. Article 1 of ASCM lays down the definition of a subsidy, clause1.1 states (WTO, 1995): â€Å"

History Essay Example | Topics and Well Written Essays - 1000 words - 17

History - Essay Example The era of the Southern Reagan Democrat was ushered in by racist attitudes that perpetuated the stereotypes about race, poverty, and the deterioration of the inner city. The conservative movement of the last half of the 20th century was based on reactionary politics against the social movements that sought a redistribution of legitimate political power. To a large extent the polarization of the political movements have been an ongoing struggle based on the politics of fear brought on by the Cold War in the 1940s and 1950s. All social movements, whether pro-labor or public health care, were labeled as communist inspired socialist programs. The Vietnam War became a significant factor in further defining the conservative movement. According to Meagher (2009), "their most notorious role in the development of the conservative coalition was to devise a post-Vietnam foreign policy in response to the perceived failures of Democrats to confront communism" (p.261). In this way, the conservative movement was able to turn the battle against liberal social programs into a front for the Cold War. The Vietnam War was also instrumental in forming a common cause base, which several other social groups utilized to form coalitions in an effort to solidify voting blocs. Identity politics, the Black Panthers, Civil Rights, feminism, and the environmental movement all fell under the anti-war umbrella. The left viewed Vietnam as a symptom of worldwide oppression. Though this was a worldwide war being waged by the left against imperialism in all its forms, political and economic, the Left was able to be translated it into the broader issues of community and neighborhood problems of housing, jobs, and education (Nakanishi and Lai, 2003, p.172). Social progress was viewed as redistribution of wealth and progressive programs were labeled as socialism. The conservative movement continued to