David and Goliath World Trade Organization Case Study Essay

1151 Words May 7th, 2011 5 Pages
David and Goliath World Trade Organization Case Study
Assignment 4-3

Prepared for
Prof. Stephen Millett
MBA 711, H4FF
Fall 2010

Prepared by
Gary Cooper

December 2, 2010

David and Goliath World Trade Organization Case Study
Jay Cohen and two friends established an online gaming site on the islands of Antigua and Barbuda; they named the organization World Sports Exchange (WSE). Mr. Cohen was prosecuted by the U.S. government; his conviction resulted in a battle between the U.S. and the two small Caribbean islands of Barbuda and Antigua. The epic battle of David and Goliath was mediated by the World Trade Organization (WTO) and raised a lot of interesting questions about international trade and internet gaming (Steiner,
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Governmental Environment The case had a high level of government involvement. The United States held the position that online gambling had a significant impact on the moral fiber of the country, particularly with the younger generation. This is a big issue for WSE because most of the companies’ customers live in the United States, so naturally the U.S. believed it had to intervene. WSE did not consider the U.S. position because its offices where not located on U.S. soil. Another government factor is the trade agreements made between the members of the WTO. The WTO’s purpose is to assist with such disputes but the process does not work when parties refuse to comply. When operating in the world market a company needs to understand fully the potential risk that lies in foreign markets, particularly with powerful nations like the United States.
Cultural Environment
The main cultural issues in this case stem from the morale view on gambling and the role that that a sovereign nation plays in regulating gaming activities. Cultural view points between the Caribbean countries and the U.S differed significantly. In addition the U.S. has created a culture that provides its people with a sense of entitlement and the country often polices the rest of the world, but in this situation the nation showed that it

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