Impact of European Union and World Trade Organization on Trade

This essay provides an overview of the European Union (EU) and the World Trade Organization (WTO) and their respective roles in international trade and business. It discusses the EU as an economic and political union of 27 member states, emphasizing its impact on trade, finance, and global politics, highlighting its goals of promoting human rights and facilitating free trade among its members. It also explains the WTO as an inter-governmental organization regulating international trade, focusing on its function in resolving trade conflicts, ensuring fair trade practices, and fostering economic growth through trade liberalization. The essay concludes by emphasizing the importance of both organizations in shaping global trade policies and practices.

Running head: International Business
International Business

International Business
1. European Union and its role in trade and
business
European Union is considered as an economic and politic union of 27 member states that
are situated in Europe. It is the society in which the individuals come together so that peace and
security can be maintained within the nations. It is an integration of the states that focuses on
various histories, economies, and political systems. In the recent scenario, it has been analyzed
that EU covers a majority of over 500 million populations. The creation of single currency
depends mainly on the unions to achieve success in the respective economies. There are also
many other nations who rely on the EU trade, finance and also investment. EU has a great force
on the global political arena. European Union was started on 1 November 1993 in Maastricht,
Netherlands (Hill & Vanhoonacker, 2017).
The European Unit was established with the motive to the aim of ending the frequent
and wars which take place between the neighbors and which resulted in the Second World War.
In 1950, it has been seen that European coal and steel community started to unite with the
European countries economically and also on a political basis so that peace can be maintained.
The motto of European Union is related with "Unity in Diversity". It first came in 2000. It shows
that how the Europeans came together in the form of EU and worked with peace and also it has
been enriched by the continents that consist of many different culture, traditions, and language.
The goal of the European Union is to promote the rights of the human both internally and
externally on a global basis. The values of the EU are related to the freedom, human dignity and
also respect for human rights (Greenwood, 2017).
The role of European Union in trade and business is related to the right to support to
export and import the products freely. The European Union focuses on business trading in which
the European economic area and turkey have the right to export and also import the overall
products or the goods. It has also been analyzed that European Union is considered as the biggest
trader in the world.
The basic principle of the EU is to conduct free trade among its members and also it is
linked with the committed liberalizing world. EU is the largest exporter of the manufactured
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goods and services and the products are imported over 1000 countries (Telo, 2016). It is also the
biggest single market area. Both the European and also international customers avail the benefit
of a simplified system in the area where individuals, products, and money can freely move. It has
been analyzed that EU negotiates the agreements with the help of a worldwide network of the
trade relations. There is partner involved with the help of free trade agreements. These
partnership helps to grow and also the jobs for the Europeans by focusing on the new market on
the global basis. The trade policy of EU helps to minimize the child and forced labor and also
the price volatility. The schemes help to ensure the overall transparency and also trace the overall
supply chains. The policy of EU focuses on combining the trade and development. It gives
assistance to the small export business and also advice in the overall improvement so that growth
can be achieved (Woolcock, 2016).
2. World trade organization
World Trade Organization is an inter-governmental company that regulated the
international trade. WTO trading system is the overall fact that boosts the growth of the economy
and also assists the countries to develop. Commerce and development are beneficial for each
other. It has been seen that the agreements of WTO are full of provisions that consider the
overall interest of the developing countries. World trade is founded on the overall rules that help
to consider that trade agreement and the overall obligations of the nations are fair and open
(Baldwin, 2016).
It has been evaluated that world trade organization has the responsibility to deal with the
rules of trade between the nations on a global basis. WTO assists to solve the conflicts between
the different nations and also offer forums for confirming the trade agreements and also their
implementation (World Trade Organization, 2017).
The main motive of WTO is to assist trade flow so that free trade conflicts can take place
with the objective related to legal and environmental aspects. The main function of the WTO is
to ensure that the international companies are dealing with the global rules of trade between the
nations. The role is to ensure the proper trade flow in a smooth and in a free manner. It helps in
trade between nations by focusing on trade without discrimination. It has been seen that under
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the agreement of WTO the countries are not able to discriminate between the partners related to
trading (Flento & Ponte, 2017).
The equality is maintained by the company so that trade can take place in a proper
manner. It has also seen that the products which are imported and produced locally are given
equal treatment and also the help is given to the new foreign good entered in the market. It has
also been analyzed that system helps to manage the disputes to be handled in a proper manner.
There could be trade liberalization and expansion but policies are implemented to manage the
conflicts. It has also been seen that WTO is only the company that offers global international
delaying by considering the rules related to trade between the countries.
The negotiation is done and also the rules are created. It ensures that global trade takes
place in a proper manner and also it helps to predict in a proper manner. The WTO creates and
considers the rules of global trade-related with the member of the nation. It also offers a system
for international commence (Matsushita, Schoenbaum, Mavroidis & Hahn, 2015). So, it can be
concluded that WTO is considered as a company that helps in conducting the trading between
the countries.
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References
Baldwin, R. (2016). The World Trade Organization and the future of multilateralism. Journal of
Economic Perspectives, 30(1), 95-116.
Flento, D., & Ponte, S. (2017). Least-developed countries in a world of global value chains: are
WTO trade negotiations helping?. World Development, 94, 366-374.
Greenwood, J. (2017). Interest representation in the European Union. Macmillan International
Higher Education.
Hill, C., & Vanhoonacker, S. (2017). International relations and the European Union. Oxford
University Press.
Matsushita, M., Schoenbaum, T. J., Mavroidis, P. C., & Hahn, M. (2015). The World Trade
Organization: law, practice, and policy. Oxford University Press.
Telo, M. (2016). Introduction: Globalization, new regionalism and the role of the European
Union. In European Union and New Regionalism (pp. 25-46). Routledge.
Woolcock, S. (2016). European Union economic diplomacy: the role of the EU in external
economic relations. Routledge.
World Trade Organization (Ed.). (2017). A Handbook on the WTO Dispute Settlement System.
Cambridge University Press.
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