Expando manufacturers Essay Example | Topics and Well Written Essays - 500 words

Expando manufacturers - Essay Example The situation was that the Expando Co. in State A received a wide variety of general subsidies from the State A government (including tax breaks, low interest financing, and technical assistance) that State A offers to all domestic enterprises within its territory. It is important to keep in mind that these breaks are offered in domestic situations. However, Expando manufactures began to market their wristwatch bands in State B and when this occurred the disagreement began.. The Flexo Co. in State B manufactures similar watchbands to those manufactured and marketed by Expando. Flexo Co. began to lose some of its market share to Expando and they became concerned over the loss. State A and State B are both WTO member states. While the market loss for Flexo ensued, there were some further issues that Flexo to take into consideration. Included was Their desire that State B impose a countervailing duty to offset the subsidies received by Expando from State A, and Flexo asked the State B Customs Service (which is responsible for imposing such duties) to do so. the reason that the question the question at hand was answered yes is because of the codes stipulating international business conduct for WTO members. According to these laws specifically Countervailing Duty Laws.