The power of the General Agreement on Tariffs and Trade (GATT) to ...

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The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from the World Trade Organization (WTO).
 
  Indicate whether the statement is true or false

Question 2

Describe six unique qualities shared by all cross-border contractual relationships.
 
  What will be an ideal response?

[coreycathey]

Answer to Question 1

This forum is amazing.

Answer to Question 2

Cross-border contractual relationships have six unique characteristics:
 First, they are governed by a contract that provides the focal firm a moderate level of control over the foreign partner.
 Second, the relationships typically involve the exchange of intangibles (intellectual property) and services.
 Third, contractual relationships can be pursued independently or in conjunction with other foreign market entry strategies. Their use is context specific; that is, a focal firm may pursue a contractual relationship with certain customers, countries, or products, but not others.
 Fourth, cross-border contractual relationships provide for a dynamic, flexible choice. Over time, the focal firm may switch to another way of servicing foreign markets.
 Fifth, the relationships often reduce local perceptions of the focal firm as a foreign enterprise. Since the focal firm partners with a local firm, it may be able to shield some of the criticism directed towards MNEs.
 Finally, cross-border contractual relationships generate a predictable level of earnings from foreign operations. In comparison to FDI, contractual relationships imply reduced volatility and risk.