David and Goliath World Trade Organization Case Study

Topics: United States, Caribbean, International trade Pages: 4 (1141 words) Published: April 27, 2011
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, Steiner, 2009). The following case study analysis will describe the central issue of the case and the relevant facts, as well as the external operating environments that WSE had to contend with. Furthermore the paper will provide possible solutions for the matter in the short and long term. Central Issues and Relevant Facts

The primary issue seems to be that WSE was profiting from U.S. consumers and the U.S. government was not receiving any benefit. Sports organizations were upset and the country’s “social morality” was being attacked, or at least that was the opinion of the supporters of the Unlawful Internet Gambling Enforcement Act (EIGEA) of 2006. The bottom-line is that Mr. Cohen was not breaking any laws within the country that his business operated in. The U.S. clearly overstepped its bounds and did not conform to the General Agreement on Trade in Services (GATS) that all WTO organizations ratified in 1995 (Steiner, Steiner, 2009). The United States’ stand on gambling is hypocritical, many regions within the nation allow gambling, and the nation should not restrict gambling transactions with countries that it actively trades with, specifically members of the WTO. In the case between Antigua, Barbuda, and the United States...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • David and Goliath Case Study Essay
  • Benefits of the World Trade Organization Essay
  • Is the World Trade Organization Good? Essay
  • Case Study Analysis of the Offshore Internet Gambling and the Wto Case Study Analysis: Offshore Internet Gambling and the World Trade...
  • World Trade Center Case Study Essay
  • David Out Goliath Case Essay
  • E Trade Case Study Essay

Become a StudyMode Member

Sign Up - It's Free