International Business: Role of World Trade Organization

Module Title: International Business
Executive Summary
In this report international business is described and the role of world trade organization is discussed. WTO is an international
organization which trades in goods and services. It also helps in reducing and barrier, reduce and cost of production. The reason
behind the formation of world trade organization was discussed in the report. Different function of WTO is discussed. The
functions of world trade organization are global trade rules, trade negotiations, building trade capacity in developing economies,
Further, challenge that are faced by an organization in trading goods and services and achieving the principle of encouraging
trade between countries are described. The main challenge for an organization is to handle disputes. Due to disputes
organization are not able to trade properly and must face challenge to achieve their goal. The challenge are disputes between
countries and impact of covid-19 on production of goods and services, import and export of products and on the revenue of
organizations. Recommendation is provided and supply, improve like strengthen the process of communication, provide more
efficient mechanisms to much or balance demand and supply, improve usability of information sharing databases and world trade
organization need to take necessary steps to promote trade in the country.

Table of Contents
LITERATURE REVIEW....................................................................................................................................................................4
Motivations behind the formation of WTO....................................................................................................................................4
ANALYSIS AND DISCUSSION.......................................................................................................................................................8
International business practices ....................................................................................................................................................8
Concepts and theoretical framework to workplace experience .....................................................................................................9
Theory to practice in WTO effectiveness and how industries are affected by WTO policies......................................................11
CONCLUSIONS AND RECOMMENDATIONS............................................................................................................................12
REFERENCES .................................................................................................................................................................................14

INTRODUCTION
International business can be defined as trade of goods and services, technology, capital, and knowledge across national
borders and at global scale (Amadeo, 2021). It includes trading of good and services between two or more country. International
business can also be referring to as globalization. There are two factors of greater globalization, the first factor is eliminating
barriers and the second factor is technological change, generally development in transportation technology, communication.
World trade organization is only global international organization which deals with rules of trade between nations. The goal of
WTO is to help producers of goods and services exports, and importers. Official language used in WTO are English, French,
and Spanish. There are many advantages of World Trade Organization are it promotes free trade, provide legal framework for
negotiation of trade disputes, trade disputes, trade without discrimination, world trade organization is committed to protect fair
competition. In the report motivation behind the formation of world trade organization is discussed. Key function of WTO is
described – challenge face by WTO in achieving its principles and theory to practice in assessment of WTO effectiveness.

LITERATURE REVIEW
Motivations behind the formation of WTO
As per the view of Beugelsdijk., Kostova and Roth (2017) the main objective behind forming the world trade organization
is to make sure that trade flows are smooth and predictable. WTO was established to supervise world trade. There are some key
objectives for forming world trade organization are, to set and enforce rules for international trade, to monitor trade liberalization,
to resolve trade disputes, to increase the transparency of decision-making process, to cooperate with other institutions and to help
to develop countries. Members of WTO must grant equal access to the market. It is the only organizations that is dealing with
rules of trade between nations. Advantages of world trade are, it helps in increasing revenues, decreased competition, provides
easier cash flow management, helps in better risk management, disposal of surplus goods. On the other hand, Buckley and
Casson (2019) the reason behind formation of world trade organization is to operate in complex environment, for solving the
disputes and for smallest countries in global system. Many conflicts arise when one member accuses another member of
dumping. The role of WTO is maintaining balance between its member nations. By reducing the trade barriers or tariffs through
negations, the world trade organization breaks barriers between trading economies and peoples. The objective of world trade in
such a way that it will benefit every country. It helps in demolishing all the hurdles, proper utilization of resources. World trade
organization provides services all over the country.
Functions of WTO
According to Nielsen and Raswant (2018) there are various function performed by world tare organization are: