Understanding the World Trade Organisation (WTO) in International Business

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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