World Trade Organisation: Motives, Functions, and Challenges

INTERNATIONAL
BUSINESS

EXECUTIVE SUMMARY
This report contains various types of function that are related to the World trade
organisation. This report discuses about things that are motivating the WTO to work more and
more effectively. The formation of WTO happened so that all the trade practices that are being
used can be regulated. They are the one that will be maintaining peaceful trade relation in
between the countries and they will be the one who will be solving various types of dispute. The
report will also discuss about the views of various different author in relation to the international
trade that is being conducted by the WTO. There are various different types of function that are
related to the working of the WTO, as they are the one that will be managing the fund
requirement and the allotment of the funds to various different countries and they are also
responsible to formulation of the policy regard to the trade. This report will also throw some
light on the challenges and the issues faced by the WTO and what all theory are they using so as
to formulate policy.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Literature review.............................................................................................................................4
Determining motives behind formation of World Trade Organisation (WTO).....................4
Functions of World Trade Organisation ...............................................................................5
Suitability and challenges faced by World Trade Organisation for encouraging trade between
countries.................................................................................................................................6
Applying various Theories for effectiveness of WTO...........................................................7
Analysis and discussion..................................................................................................................8
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX...................................................................................................................................15

INTRODUCTION
World trade organisation(WTO) is the global organisation dealing in augmenting trade
practices between nations. It makes trading rules and agreements between which supports fair
means of trade practices, exports, imports. It ensures smooth trade means and businesses to
promote peace and harmony. Decision-making power is been authorised to the hands of member
of government (Aagaard, Aagaard and Harrison, 2019). World Trade Organisation formulates
and implements principles of trading system. It follows a hierarchical structure for making
decisions, all crucial and major decisions are been formulated in Ministerial Conference which is
a general meeting held at after every two years. Currently members at World Trade Organisation
includes above 160 members from different nations. For government to intervene in World trade
Organisation, it has to implement economic policies by negotiating with World Trade
Organisation rules and policies. The annual budget at World Trade Organisation is been driven
by members of different nation. World Trade Organisation groups frames all policies and terms
with the consent of different nations to promote international trade. World Trade Organisation
frames at making regulation regarding trade relations between nation and promotes to settle
trade disputes. It focuses at implementing decisions which promotes national and international
security and environment friendly laws. It takes proper measures to consider fair trade practices
and eliminating trade discrimination between nations.
Literature review
Determining motives behind formation of World Trade Organisation (WTO)
As per the study of Daniel Gay is mentioned by him that WTO agreements manges and
controls trade relations between different nations. It formulates all trade agreements and rules
which supports in trade settling disputes. It makes trade policies by consideration to the global
economic policies of different nations (Duz Tan and Tas, 2020). It ensures that there is a
smooth and transparent flow of information to make sure that all the decisions are made which
promotes fair trade practices. It ensures equality and justice in conducting trade operations
between nations. World Trade Organisation provides cooperation and coordination to the under
developed or developing countries. It renders a framework of the polices and objectives of
operations of Trade Agreements between nations. World Trade Organisation cooperates and
coordinates with international monetary fund and other different international banks to manage