Question

Rodrik highlights the fact that intellectual property rights enforcement has been a large part of recent trade agreements. What do you think is one positive and one negative associated with increased intellectual property rights enforcement across borders?

Answer 1

The intellectual property rights across boarder will protect the inventions of domestic companies. Most of the intellectual property rights are automatic without any need of formal applications before the protection. For example, the copy right protection is automatic in nature. But on the other side, patent and trademark protection involve formal and complex in nature.

One of the most important advantage of the intellectual property right is it will increase the export opportunities. In international trade, every company and countries tried to increase their production through increasing the level of export. This will also increase the competition in global economy. The high level of exports will increase national output and employment opportunities. There is easily market availability in the foreign market. The companies which have property rights can use design to market goods internationally. This will also increase the profit level of the country and the domestic industry.

Among the advantage, this intellectual property right will increase the cost. It makes additional cost in the production process. Protecting this rights need a lot of money. If the product is more complex and highly designed need more money to protect their rights. So the company need more several patent applications to protect the product. There is a high payment for the fees and costs associated with the patent application process. This all cost will reduce the level of profit of the domestic company.