International Business: Formation, Functions, and Impact of WTO

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Literature Review........................................................................................................................1
Analysis and discussions.............................................................................................................4
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
International business depict the sale of products and services, technology and knowledge
across the national borders. It undertake the cross border transactions of products among two or
more countries with the purpose of international production of physical products like banking,
finance, insurance and so on. International business leads to create opportunities for the
international business and also referred as globalisation as it takes place in market in which trade
barriers are fall and the preferences of buyers gets change (Cavusgil and et. al., 2020).
International business leads to serve effectively for both personally and professionally in terms
of moving beyond the industrial production. International business occur in various ways like the
movement of products from one to another country, contractual agreements that permit foreign
company to opt products and processes from other nations and formation of research and
development, sales, manufacturing and other facilities in foreign markets (Iammarino, McCann
and Ortega-Argilés, 2018).
To carry forward this report, World Trade Organisation is considered which is an
intergovernmental company as it is related with effective regulation of international trade among
nations. WTO is founded in January 1995 with the objective of eliminating tariffs and other
barriers of trade. The report tends to cover details regarding the understanding about the
motivation behind the formation and functions of company. It also assess the suitability of WTO
and its challenges and also apply suitable theories to practice that impact the policies of
company.
MAIN BODY
Literature Review
Motivations behind the formation of WTO
According to Amadeo, K., (2021), World trade organisation is the global membership
group that leads to promote and manage free trade in various ways like receiving most favoured
nation trading status and existing multinational trade agreements. For this, the overall purpose of
company is to effectively settle the trade disputes when conflict occur and also tends to export
goods at the lower price. Furthermore, World trade organisation also tends to manage ongoing
bargaining for the new trade agreements by focusing on the expansion of growth for developing
countries. WTO is developed of 164 member countries in order to deal with the suitable rules of
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trade nations and the objective of company is to make sure that trade flows effectively and
predictably as possible. WTO is began after the world war II with trade negotiations by focusing
over the elimination of tariffs and non-tariff measures. For this, company also tends to make
suitable agreement in order to promote trade within the telecommunication services among 69
countries (Peterson, Arregle and Martin, 2020). They also tends to eliminate tariffs on the
information technology and concerning products among the 40 members. It also tends to enhance
suitable trade for the insurance, banking, financial information and securities among 70 nations.
For this, the objective of WTO is to make sure suitable and smooth trade flow among various
countries as much as possible. Apart from this, WTO was born out of the General Agreement on
Tariffs and Trade which was founded in 1947 as if trade regarding conflicts occur than WTO
tends to work to resolve it. Along with this, WTO also tends to offer a common platform in terms
of eliminating trade agreements within their member nations in terms of eliminating any sort of
trade disputes. It also undertake observer states which is not signatories to the agreements of
WTO as they do not participate in free trade.
Key functions of WTO
According to Paine, J., (2018), WTO leads to negotiate and also tends to signed by the
bulk of the world's trading nations by undertaking the goal which is useful for the producers of
products and services, importers and exporters and so on in terms of conducting their business.
In regard of this, WTO tends to facilitate the effective execution of administration and operations
of the WTO trade agreements like multinational trade agreements. They also tends to offer forum
regarding the elimination among its members undertaking the multilateral trade relations and
also monitor national trade policies. WTO also offer training and technical help to their members
of developing countries. When the agreements are negotiated then the job of WTO is to make
sure that the signatory country adhere to its commitments in practice and also tends to produce
research that put major impact over the agreement on the economies of nations. Furthermore,
WTO also act as the settlement body of disputes when the trade conflict occur among its member
states (van Tulder, Verbeke and Piscitello, 2019). WTO also file complaint against other member
states when they get to know that the trade economic policies of country are quite divergent from
their commitments under the agreements of WTO. Company also run special program in terms
of supporting developing countries that help them by making them capable to participate in free
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