Motivations and Functions of World Trade Organisation (WTO)

International Business

EXECUTIVE SUMMARY
World trade Organisation (WTO) is only international firm that deals with trade rules among
countries. As their heart are WTO agreements, negotiated as well as signed through bulk of
world’ trading countries and ratified into its parliaments. The intent is to aids manufactures of
products and services, exporters and importers perform its business. Additionally, The main
motive behind formation of WTO is maintaining stability and provides assurance to different
countries to make business deal more effectively. Apart from this, it helps in lowering down the
trade barrier which often increases the purpose of WTO. In addition to this, Environment
sustainability is key thing which affect the standards of WTO to many businesses. The policies,
related to surroundings are very complex which create issue for plenty firms. The common
exchange within the policies in addition to pointers made by the WTO affect the modern
performance as it take time and resources to implement new structure in limited time period.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Demonstrate an understanding of the motivations behind the formation of the World Trade
Organisation (WTO)....................................................................................................................1
Demonstrate an understanding of the key functions of WTO.....................................................3
Assess the suitability of WTO and the challenges facing the organisation in achieving its
principle aim of encouraging trade between countries................................................................3
Apply theory to practice in the assessment of WTO effectiveness using relevant examples of
how specific organisations or industries are affected by WTO policies.....................................4
ANALYSIS AND DISCUSSION...................................................................................................5
Demonstrate an understanding of the motivation behind the WTO............................................5
Explain the key function of WTO...............................................................................................5
Assess the suitability of WTO and the challenges face by the organization in achieving the
principles to encourage trade between countries.........................................................................6
Apply the theory of the assessment of WTO using different examples......................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International business is considered as the trade of products, facilities, technology, funds and
understandings across national borders as well as at international or transactional scale.
Moreover, this incorporates cross border products transactions among two or more countries. In
addition to this, it encompasses whole commercial practices which considers for promoting
transfer of products, services, individuals, ideas as well as technologies all over national
boundaries. This enhances competition in domestic markets as well as introduces new
opportunities for worldwide market (Buckley and Casson, 2021). For this report, the undertaken
company WTO is known as World Trade Organisation. It is an intergovernmental firm which
govern and facilities global trade among countries. Its headquarters is in Geneva, Switzerland.
Also, its key functions is to assure that the flows of trade as smoothly, anticipation and freely as
possible The topics which are going to be discussed in this report are motivation behind World
Trade Organisation formation, key function of WTO and challenges faced and suitability of
WTO. Moreover, Application of theory to practice in the assessment of WTO effectiveness using
relevant examples of how specific organisations or industries are affected by WTO policies is
also described. Apart from this analysis and discussed related to this are also explained in this
report.
LITERATURE REVIEW
Demonstrate an understanding of the motivations behind the formation of the World Trade
Organisation (WTO).
As per the Reem Heakal (2021), World Trade Organisation (WTO) is considered as the
multilateral organisation having headquarters is in Geneva, Switzerland. Moreover, this came
into existences on 1sts January, 1995, as successor to General Agreement upon Tariffs as well as
Trade (GATT). In addition to this, respective firm functions as central body which provides
international trade. Additionally, they render a common platform for negotiating trade
agreements among member countries as well as to solve any trade conflicts. Also, they manage
about 60 as well as in around 300 regional trade agreements. The agreements of 60 trades are
accorded global law status. It comprises of about 164 members states. Furthermore, their key
goal is to assure that flows of trade as smoothly as well as predictably as possible. World Trade
Organisation (WTO) was developed among General Agreement on Tariffs and Trade (GATT), it
1