David and Goliath World Trade Organization Case Study Essay

1149 Words Apr 20th, 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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In regards to online gaming, horse racing is a legal sporting event where betting is allowed to take place online and across state lines. That fact alone makes the U.S. government’s argument of morality null and void. There is no difference between gambling on a horse race and betting on a sporting event. Legislation that attempts to control individual choice is an infringement on civil liberties and has not proven successful in the past, particularly with prohibition on gambling and alcohol. Mr. Cohen lost a significant amount of his life because he was convicted on a ridiculous charge. Where is the morality in that? Gambling continues to gain in popularity and many states are embracing the industry in order to boost tourism, increase revenue, and create jobs. This trend will probably continue as people begin to realize that the government should not decide whether or not a person can gamble. This is a prime example of too much government; the country has more pressing issues to deal with and should focus on problems that truly affect the American people.
Technological Environment Technology is a huge factor in this case because all WSE’s transactions where conducted online, telephonic, or via wire transfer. The online forum is specifically the issue that the U.S. government had with WSE’s profits generated from U.S. consumers. The country’s position was that Mr. Cohen was in violation of the Wire

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