Importance of World Trade Organisation in International Business

International business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature review..............................................................................................................................1
Demonstrate an understanding of the motivations behind the formation of the World trade
organization.................................................................................................................................1
Demonstrate an understanding of the key functions of WTO.....................................................2
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 decision:.................................................................................................................5
Recommendation:............................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International business refer to trad of goods and services, capital, technology, knowledge
across the borders. It also involve cross border transactions of product and services in two or
more countries (Acosta, Crespo, and Agudo, 2018). International business can expand the level
of diversity and the growth of business in the other countries. This help in producing higher
quality of goods at lower prices so that margin in business can be increases. Also it assist
business towards earning of high profit and growth in the market. World trade organisation, is an
intergovernmental organisation that regulate and facilitates international trade between nations. It
officially commerced operations on 1st January, 1995 and pursuant to the 1994 international trade
between nations. The WTO is facilitate trade in goods and worlds largest economic organisation,
164 member states representing over 96% of global trade of gross domestic product. Below
report is based on information about the importance of world trade organisation and its motives.
Also its include various challenges that organisation is facing in order to achieve its principles.
Also it include understanding about the key functions of organisation, and theory and practice in
the assessment of world trade organisation. In the last it include examples of how organisation or
industries are affected by world trade organisation policies.
MAIN BODY
Literature review
Demonstrate an understanding of the motivations behind the formation of the World trade
organization.
As per the viewpoint of Reem Heakal., 2021. world trade organisation is a global
organisation that made up 164 members countries that deal with the rules and trades between
nations. The main motive of world trade organisation is to ensure that trade flows smoothly and
predictably as possible. The WTO was made out of general agreement on traffics and trade
which was established in 1947. the world trade organisation replaced with GATT as worlds
global organization trading body in 1995, and current set of government rules stems from the
very negotiation and gather information. For regulating trade in services has impact on the
growth trade services. Intellectual property right were establish for the regulation protecting the
trade investment of ideas, design, patents, concepts etc. the main purpose of the WTO is to
ensure that all the global trade business run in effective manner and provide effective growth to
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the world trade businesses. World trade organisation aims to create economical peace and
stability in the all over the world through the multilateral system based on consenting member
states.
World trade organisation become part of the countries legal system, all the rules apply to
local companies conducting business in the international market and increase the level of
effectiveness in the future economy. If the company decide the invest in global market than
business has to follow rules and regulation of the world trade organisation. If the company is a
part of world trade organisation its law and regulation can not contradict world trade
organisation's rules and regulation, which currently approximately 96.4% of all world trade. The
current director general of the world trade organisation is Ngozi Okonjolweala form Nigeria.
Decision was made based on the voting and also rule. There are also goods council, services
council and intellectual property rights. The main motive of the WTO is to provide effective
growth and fulfilment of needs of rules and regulation in the business so that effective outcome
can be received. World trade organization's motive set and enforce rules for internation trade, to
provide a forum for negotiating and monitoring further trade liberalization. Also it helps to
increase the transparency of decision making process. Also it helps to compare with other major
international economic.
Thus, form the above information its can be understand that world trade organisation play
an important role in better growth of country economy and foreign to increase the level of
effective decision making. It enhance the trade between national and international business of
that effective growth can be achieved and it can enhance the level of effectiveness. World trade
organisation make rule and regulation that have an impact on the foreign market of business also
effectively work on the efficiency.
Demonstrate an understanding of the key functions of WTO.
As per the viewpoint of Kym Anderson., 2021. the international organisation world trade
is the successor to the GATT, which was created in 1947 in the expectation that it would soon be
convert by a specialization agency of untied nations to be called international trade organisation.
The main function of the organisation is to facilitate implications, administration, and operations
of world trade agreements. Such as multilateral trade agreements, plurilateral trade agreements.
It also provide negotiations among the members concerting their multilateral trade relation. It
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