Understanding the World Trade Organisation (WTO) in International Business

This article provides an overview of the World Trade Organisation (WTO) and its role in international business. It discusses the motivations behind its formation, key functions, challenges faced by the WTO, and the assessment of its effectiveness. It also explores how organizations and industries are affected by WTO policies. The importance of WTO in international business and its role in global trade rules and negotiations are highlighted. The article concludes by discussing the WTO agreements and their impact on trade.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
understanding the motivations behind the formation of the World Trade Organisation (WTO).
.....................................................................................................................................................1
understanding the key functions of WTO..................................................................................2
Find out the WTO challenges facing the organisation in finding its principle ..........................2
theory to practice in the assessment of WTO effectiveness ......................................................3
how the organisations or industries are affected by WTO policies. .........................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The study of the international business involves in the analysis the effects of the activities
that have an impact on the domestic and foreign, companies and also on the individuals. The
successful international business helps to find out the diversity over the world, and also the
international business have the ability to cope up with the problems caused by uncertainties and
also various risks of doing business in the actively changing global market. The participation in
the international business is giving permission to the countries to get benefits from the other
regions in the context to access the affordable land, capital and labour (Acosta,Crespo).
International business also increased the competition in domestic market as well as find out the
new opportunities in the foreign market. And do motivates the companies to become more
innovative and being capable in the use of their resources effectively. In the terms of
international business, defining the, WTO is the one and only global international organisation
deals with the rules and regulations of trade between the nations. Now in the context of WTO,
analysis the causes of the formation of WTO, challenges faces by WTO, and the assessment of
WTO effectiveness and so on.
LITERATURE REVIEW
understanding the motivations behind the formation of the World Trade Organisation (WTO).
As per according to the viewpoint of Kimberly Amaded, 2021, the world trade
organisation is the global company that promotes the free trade. There are three ways for
managing the free trade first the WTO is administering the existing many-sided trade
agreements. Every members who are the member of the group is able to being receive the
information related to the to the highest degree favoured nations trading status. That means with
the help of WTO the members are receiving the lower tax for the exports and imports of the
company. Now the motivation behind its formation is the WTO is basically began from the trade
negotiations after the world war two ended. And when in 1948 the general assessment on tariffs
and trade is getting focused to decrease the tax, the reason behind WTO formation is the most
importantly that this will help to governs the world trade. And the intension of these negotiations
is to established the international trade organisation, this will not only manage the trade barriers,
but also other issues directly related to trade, investment in the trade, agreements of the business
as well as handling the restrictive business. One of the major purpose of the formation of WTO is
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the resolving the grievances barriers in between the trade as well maintaining the harmony and
peace of the organisations. As well as this also helps in the improvements of the rules to manage
the new areas like services trade and the trade related to intellectual property right.
understanding the key functions of WTO.
According to the view point of REEM HEAKAL, 2021The key functions of the WTO is to
improve the standard of living of the peoples in the group members of the country as well as to
make sure the full employment and also helps to increase the demand of the product in an
effective way and (Agudo 2018). WTO main functions is trade the remedy if a trade dispute
causes the WTO have the responsibilities to resolve the dispute and reached into the conclusion.
As for example if a country have the trade barriers because the custom duty against a specific
country or on a specific goods, the WTO also address the issues that is sanction due to violating
the countries. The WTO is also works to manage the conflicts and negotiations. The other
competitors also arguing from the WTO functions as the global power to manage the trade, as for
example, the rules and regulations every country wants to establish for protecting their
industry,workers, employees and and environments could be considers barriers, this is the reason
WTO decided to give this facility for free. As well as safeguarding the trading interest of
developing countries, there are some strict regulations innovated by WTO to protect the trading
interest of some of the developing countries. This supported each and every member of the
country to make the capabilities for maintaining the mandatory things of the organisation like
resolving the disputes, and also innovating the relevant standard of techniques for maintaining
the peace and harmony of the trade, and every worker of the organisation is accountable for their
particular given task.
Find out the WTO challenges facing the organisation in finding its principle
According to the view point of tripti, 2021 as the world trade organisation is the most powerful
legislative and the judicial body in the world. By encouraging the free agenda to the
multinational corporations because of the interest of the local bodies, working labours families
and the WTO helps the democracy to manage over the world in a systematic way. The WTO has
not only increased the uncertainty of the economic (Agbim, and Eluka 2018). As well as the
challenges face by WTO is the lack of transparency, there is the problem in the negotiations as
when no one is agreed by the definition of what constitutes a developed country or the country
that is developing. The second challenges is related to the agriculture and the development,
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agreement on the agriculture targets helps to side the high trade barriers, which resolve the issues
of agriculture trade, although agreement also facing the issues because of the scarcity of the food
and also some development is necessary for the developing countries of India. And the third
challenges for the WTO is the e-commerce and digitalization trade in 1998 the e-commerce is
realizing that this plays a very important role in the global economy, WTO group members
established the WTO e-commerce moratorium to examine the all the issues that is related to the
trade, this is more important that in covid-19 pandemic situation accelerates to shift to the e-
commerce, and to handle the rules and regulations online but this will only related to goods and
services.
theory to practice in the assessment of WTO effectiveness
According to the view point of pavan s. krishnamurthy, 2021 in the study of the relations and the
international laws there is two major theories have to explained the international legal: first the
enforcement approach- this approach is discussed about the initiative and failures is being occurs
due the total gross costs of the compliance. But getting into the problem by domestic
administrative problems and issues (Chari, Christiano, and Kehoe 2021). These theories have
specified impacts in the study. Because this is the legal guide and structure of the policy
decisions. For testing these theories these do the influence of the interest groups of the domestic
structure explains the ability to compare the members to the settlements of the decisions.
International compliance theory: the multi collaborations between the authors relations and the
international laws has make the research agenda. This research has concerned with the dispute
resolution and also have to handle the international compliance related to the trades,
international laws has developed this framework to explain the implications related to the
international law (Prud’homme, 2019). There is the two dominants theories of the compliance
now emerges from the initial topics, and this is also to be noted in the global value chain this led
to develop the very creative methodology strategies to optimise the interest of the groups and and
also helps to influence the workers. As well as this theory also helps to resolve the grievances of
workers related to labour law, salary and negotiations, with the help of trade unions they can
easily resolve the problems and finds out the way to overcome from the situations.
how the organisations or industries are affected by WTO policies.
According to the view point of Mario larch, 2019 from over the assessment of last past decades
has constantly developed the (Cooley, and Hansen 2021) The factors that are behind this that
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encouraging the multinational trades and also elaborating the multi trading systems. The decision
of the GATT in 1947 after nearly formation of the WTO in 1995 and had established the rules
and regulations that covers the agriculture and manufacturing goods, services and also protects
the intellectual property right . But after this also there is the effect of the controversy and effects
on the trade policy because the trade policy have the link to the debate related to the empirical
proof that get affected the membership of the international trade. As well as some economic
theories telling that this has a positive impact on the membership of the WTO.
Analysis and discussion
as the study of the world trade organisation has a very important role in the international trade
organisation. This also deals with the economic, legal, and political issues these issues are
increasing due to globalisation. The world trade organisation has replaced general agreements of
tariffs and trades which was innovated in the year 1948 (Rouwenhorst, 2021). the general goal
and objectives of the WTO is to help and build the platform for their group members to
providing the services of exports, imports, and try to operate their business in a proper manner
(Cooley, and Prescott, 2021) There are many advantages to the countries who are already the
members of WTO because this can be helpful in providing the lower trades and also try to
resolve the barriers in between them. Mostly every industrial and agriculture companies are
affected by the trade barriers between the two nations. USA is always being considered a free
trade country from starting because they are facing very less numbers of trade barriers for their
importing goods.
Importance of WTO in the international business.
 WTO provides and implement the administration and helps to smooth their operations in
trade agreement and barriers between the two countries.
 Resolving the disputes and also help in the trade negotiations between their members of
the country
 this operates with the international monitory fund and get attached with the terms of
making global economic rules and regulations.
Therefore, WTO has established to play a very important role in the world of economics for
settling the relationship between the trades related grievances through applying the rules,
regulations and also have to manage the mechanisms that will protect the trade wars in between
the two powerful countries (Dima, Dima and Mahagaonkar, 2018). Because of resolving the
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trade disputes in the timely manner the WTO has got the power to maintain the world peace and
harmony and have the multi relation between their group members through various negotiations,
consultations, and also from the meditations. Now the discussion is about global trade rules of
the WTO.
Global trade rules: Global trade rules gives the assurance and as well as stability to the traders.
The consumers and the producers can take advantages and can enjoy and they have many options
to choose the finished products and also the raw materials and services they are using. This is the
reason for a more prosperous, peaceful, and responsible for managing the economies of the
world (Gonzalez-Perez, Lynden, and Taras, 2019). Decisions of the WTO are generally taken
by the group members of the WTO, as well as the trade frictions helps in the dispute settlement
process of the WTO, where they are focused on analysing the agreements and also do focus on
the commitments and to make sure the members and the WTO policies are with them. In this
way the risk of disputes is getting lower in the organisations. This agreement will give a secure
and the better framework to giving the advantages to the producers of the goods and services,
exporters and importers can run their business easily. And the goal is to improve the welfare of
the members who are the part of the WTO. Now we will discuss further about trade
negotiations.
Trade negotiations:as everyone is aware from the world trade organisation has came into
the process in 1955. this is the one of the newest international organisation. And over the past 70
years we have seen that there is very least growth in the world trade. The growth and
development of the trade is very powerful way for the whole expansion on the trade will be more
than 1.5 times. And the no. of exports also increased by 250 times in the comparison of 1948.
with the help of GATT and the WTO helps to build a strong image of the trading system,
because they are contributing in making the unpredictable growth. This system will be develop
in the sequence and series of the trade negotiations and also this has been conducted many
rounds, this system has done under the GATT. The round first is dealing with the reduction of
tariffs but after that negotiations has also included the different areas like anti dumping and non-
tariff measures. In the year 2000 the different discussion was started on the subject of agriculture
and other services (Gray, 2019) As well as the new programme also induce the negotiations and
the different types of work on non- agricultural tariffs, business and the environment, also the
intellectual property and their reach of the issues is increased by developing economies as the
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problems they are facing in innovating the WTO agreements. Now the further discussion is about
the WTO agreements.
WTO agreements: it is used for making sure that the trade is fair enough or not for
thinking about the betterment of the organisation. In 1986-94 Uruguay has established for the
betterment in the revision of the original general agreement on tariffs and trade of the
organisations (Greenwood, Rogerson, and Wright, 2021). The Uruguay is innovated because it
helps to create the new rules for handling, the trade, services and intellectual property and the
new process of resolving the disputes and grievances settlement. The complete rules of dispute
settling comes with the 30,000 pages that consists of 30 agreements with different statements.
With the help of these agreements, the WTO groups members can direct a non-discriminatory
system of trading that helps to out the rights and the obligations of the trade. Every member of
the group conferred the assurance that their export will be conducted fair manner. This system
will also helps to make the developing economy for their commitment regarding the boost in
economy. So we will further discuss about the important areas that will be focused:
Goods: this all started with the trade in goods. From the year 1947 to 1994, the GATT
has the power of negotiation of the lower tariffs and the other conflicts of the trade. This
agreement is started for managing the WTO that is included in the modified GATT, this has
become the umbrella of WTO agreements process. This is dealing in the important sectors
related to goods, such as agriculture, and also dealt with the some problem related to the goods
and agriculture, and capable to handle as for example product standards, subsidies, and actions
taken regarding dumping the goods.
Services:all the banks, insurance company, telecommunications company, hotel chains
and also the transport companies all are in waiting to do the business from outside the town.
They are likely to do investments in abroad, and the peoples are more likely to enjoy the exact
principles for more applying the more open trade that is applied for doing trades in goods
(Oviatt, Maksimov,and McDougall, 2021). These principles are visible in the general
assessments that will help the trade system for providing the proper services.
Intellectual property:the intellectual property deals with the agreements that include the
rules and creative ideas . This rules represents that how the copyrights, patents, trademarks,
geographical names are used to get recognise the products, industrial infrastructures,and the
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information that is not disclosed such as secrets of trade protected by the intellectual property
right.
Trade monitoring:the WTO policy of the trade represents the system that is designed to
improve the trading system, to give the greater knowledge and understanding of the trade polices
that is adopted by the WTO members and also helps to analyse their impact on the trade.
CONCLUSION
From the above assessment the conclusion of the topic is likely to say that as the study of the
international business, involves in the analysis that the effects and activities that have the direct
impact on domestic and foreign trade business. Now as per the viewpoints of the authors the
world trade organisation is the global organisation that promotes the free trade, as well as this
also helps in innovating the rules and regulations for the improvement and wellness of the
international trade, and now according to the viewpoint of second author this also improves the
standard of living of the peoples as well as also increases the full employment due to effectively
increasing the demand and supply of goods and services. Now according to the viewpoint of
third author the world trade organisation is the most powerful organisation related to judicial and
legislative over the world. And also the WTO always try to resolve the grievances and conflicts
between the trade and helps the organisation to focus on their trade, and sometimes helps in the
settling down of the disputes and guide the trade unions to manage the conflicts between the
workers.
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REFERENCES
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ONLINE
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