International Business Report: WTO, Trade, and Global Markets

This report provides a comprehensive analysis of the World Trade Organization (WTO) within the context of international business. It begins with an introduction to international business, defining its scope and significance. The main body of the report includes a literature review that explores the motivations behind the WTO's formation, its key functions, and an assessment of its suitability and challenges in encouraging trade between countries. The report delves into the historical context, outlining the evolution from GATT to WTO, and emphasizing the organization's goals of facilitating smooth and predictable trade. It examines the WTO's role in regulating trade in services, protecting intellectual property rights, and promoting economic stability. The report further assesses the challenges faced by the WTO, such as non-tariff barriers, agricultural protectionism, and the impact on developing countries. It applies theory to practice by examining how specific organizations or industries are affected by WTO policies, supported by relevant examples. The analysis includes discussions on the impact of international relations and international law on business compliance and growth. The report concludes with recommendations and a decision based on the analysis, highlighting the WTO's impact on the international business landscape.

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
1

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
2

also made all the rules that need to be processor in the future and increase the level of
effectiveness in the business. To handle trade in the business world trade organisation increase
the level of effectiveness and growth in the market so that effective outcome can be achieved and
growth of the business in multinational organisation could be done in effective manner. It also
monitor national trade policy that have an impact on the growth and achievement of the business
in the future foreign market.
It also provide training and development to the member country so that effective growth
of the economy can be measure. The developing country get assessment from the world trade
organisation in order to gain effective outcome and growth of the business through the foreign
exchange investment. It function form the various organisation form the overall world that
increase the level of effectiveness in the business and ensure the growth of economic
development. Providing companies rules and regulation that impact the level of effectiveness of
business growth and achievement of the objective can be achieved through the investment in the
multinational country. The aim of the world trade organisation is to make effective growth of
global economy and development of the countries so that they can help in the development and
growth. The main objective is to achieve sustainability in the business and increase the level of
effectiveness in the market for the better growth and development. The trade rules of the
members increase the level of effectiveness processor and judgement. Intellectual property rights
rules by the world trade organisation are established under the separate agreements and this
impact the level of efficiency and growth of the international trade goods.
Assess the suitability of WTO and the challenges facing the organisation in achieving its
principle aim of encouraging trade between countries.
As per the viewpoint of Tripti., 2021. there are various challenges that world trade
organisation face in order to gain effective trade between the various countries. Also the
organisation face many failures in order to sustain the market and growth of the business. The
major challenge that organisation face is to decrease the level non traffic barriers such as anti
dumping measures allows against developing countries. They also face challenge while
providing the safety to the high protection of agriculture in developed countries. This develop
high profession by providing pressed to the open market and growth in the business. Whereas
many developing countries do not have negotiations and participation actively in the
international trade and ensuring the safety of the business become challenge for the countries and
3

this impact the processing of world trade organisation and its growth in the global markets. The
sustainable growth of the economy could affect the level of utilization of technology country
does in order to make business effective and worth keeping. World trade organisation also face
challenges while provide growth to the labour rights and corporation of the services in the
market.
The world trade organisation also face criticism of destroying environment and growth of
the business in the market. That affect the entry and develop various barriers and growth of
developing countries in the international market. They element of national environment
protection was destroying by the world trade organisation. This challenges face by the
organisation that affect the growth and development of developing countries, maintaining the
level of effectiveness in the market and also affect the level of growth in the market. High
protection of agriculture may have impact on the growth and challenge for the businesses in
international market.
Apply theory to practice in the assessment of WTO effectiveness using relevant examples of how
specific organisations or industries are affected by WTO policies.
As per the viewpoint of Krishnamurthy., 2021. the study of international relation and
international law affect the level of growth and effectiveness. There are two dominate theories
that have emerge to explain international legal compliance: enforcement approach which say that
implementation failures occurs due to the gross costs and compliance. Second is management
school which say that states prefer compliance but are hidden by the domestic measures of the
business. These predominate theories explain that study say that world trade organisation
compliance as they guide legal structure and growth of the developing countries that have an
impact on the growth and proficiently.
International compliance theory:
this theory explain that collaboration between international relations and international law
has build an interdisciplinary research agenda(Chari, Christiano, and Kehoe, 2020). The joint
research has flourished around dialogue concerting the dispute resolution and interactional legal
compliance. This theory explain the interrelation between the growth of developing country and
the growth of economy in order to enhance the level of effectiveness in the business and its
growth. The theory explain the relation and international law, prominent use of the theory helps
4

in the understanding of international relation and growth of the business in the market.
Theoretical development within international market can be achieved with the use of specific
growth and development within international business(Cooley, and Hansen, 2021). This
structure of the organisation explain the growth of world trade organisation and its effectiveness
in the market. This provide insight about the international relation and growth of the market so
that business can achieve success in the foreign market.
Thus, from the above decision it can be understand that there are various factors that have
international business and its growth in the market. Also this theory explain the relationship
between the business and its effectiveness in the market. The internation business use the data
that can helps in the better understanding about the growth and proficiently.
Analysis and decision:
World trade organization is an international institution that oversees the global trade rules
and regulation that have an impact on the international business and its growth. It superseded the
1927 GATT( General agreement on traffics and trades). It is the agreement that was signed by
the majority of the world leading nations(Cooley, and Prescott, 2021). The main function of the
organisation is to attract the business to increase the level of international trade and growth of
trade market. It support the growth of international economy in the over all world. Trade
organisation ensure that there should be an increasing number of forging exchange so that the
business can gain efficiency and growth in the market. The world trade organisation is principal
body that have an impact on the growth and effectiveness of the international trade so that
business can enhance the level of trade agreements and growth in international market.
The main objectives of World trade organisation:
Enhancing the level of standard living: It is main objective of the world trade
organisation to provide effective business development so that the standard of income, full
employment and growth to the country through the development of the national and international
economy growth. The optimum utilization of the resources can help the businesses to have
effective growth and proficiency in the market(Dima, Dima and Mahagaonkar, 2018). The
optimum utilization of world's resources help the business to gain effective growth and
proficiency. It increase the level of development of developing country and provide them
effective growth and level of efficiency. The increasing number of world trade business can help
international development of human beings and their living standard. Thus, world trade
5

organisation helps the business and developing country to have effective growth and proficiency
in the market. Also this provide the betterment and future growth to the businesses.
Introducing sustainable development: the world trade organisation focus on the
development of the growth and sustainability in the business and economy so that it can help in
effective outcome and growth in the business(Gray, 2019). The developing countries can get
effective treatment from the national growth and efficiency so that they can enhance the level of
business growth. Sustainable development of the national and international economy that have
an impact on the growth and sustainable development of the businesses. World trade take
initiative to take step towards the development of the nation so that people can use both national
and international resources in order to provide prominent use of the national resources. World
trade organisation focus on the development of least developed country and that have an impact
on the growth and effectiveness of the business in the international market.
Taking positive steps: the world trade organisation ensure that they provide effective
growth to the developing and least developed country so that they can enhance the level of
effectiveness and growth(Greenwood, Rogerson, and Wright, 2021). Taking good steps towards
the development and growth can enhance the level of effectiveness of the business in the
international market. The WTO focus on sustainability and development of national and
international economy of that it can enhance the level of protection of agricultural and other
departments. The level of effective use of resource increase when the businesses use their
product and services in most effective manner and this can helps the level of business growth and
effectiveness. World trade also ensure that they provide employment in the national and
international business so that effective growth can be achieved and the future growth of the
population can be developed in the future(Oviatt, Maksimov, and McDougall, 2021). They
protect environment that helps the business and its growth in the market so that it can provide
effective growth in the market. The protection of the environment helps the countries to increase
the level of effectiveness and growth in the market. They develop policy and development in the
nation that have an effective management of growth international market.
Advantages of world trade organisation:
Lower price for customers: Removing traffics enables the people to buy the product
and services at lower cost. Increase in the competition level an impact the level of effectiveness
and growth helps In the business growth and effectiveness(Prud’homme, 2019). Increase on the
6

international business increase the level of product and services in the international market and it
has impact on the price and growth business. It able the business provide product at lower cost so
that business can attract higher customer base and growth in the market. Lower cost enhance the
profitability in the business by the increase in sale of product and services at national and
international market.
Free trade encourage greater competitiveness: This helps the business to increase the
level of effectiveness and growth in the international market. Through the free trade firms face
higher initiative to cut the cost of production and price of product that enhance the level of
business growth and effectiveness in the market(Rouwenhorst, 2021). Monopoly market may
face the high level of competition in the market and this helps the level of effectiveness and high
level of cost of production and growth in the market. Increase in the competition helps the
customers to have effective price of product and services that can help the future growth and
efficiency. Companies can gain competitive advantages by the use of various product and
services in the national and international market. Free trade services enhance the level of
effective growth and proficiency in the market.
The law of comparative advantages: the world trade organisation is able to increase the
level of welfare of the economic growth and effectively(Studlar, 2019). This is because country
can specialize their product and services so that effective growth in the international market can
be achieved. Good have lower cost and effectiveness in the market so that it can enhance the
level of business growth and efficiency. Enhancement product and services can help the business
to gain effective growth and proficiency in the market. It encourage the level of business growth
and effective growth in the market. The business can enhance the level of business growth in the
market.
Thus, from the above information it can be understand that world trade organisation help
the businesses and growth in the market. It enhance the level of economy growth and
development in the market. Also world trade organisation help the business to enhance level of
growth in the market. World trade organisation helps the countries to develop and enhance the
level of international business and growth in the market. Also it helps to gain effective outcome
and growth in the market.
7

Recommendation:
From the above information it can be recommended to the world trade organisation that
enhancement in the security issues and solve those issues can help the business of the
organisation to increase the level of world trade businesses and international business so that
global economy can be developed and growth of the developing countries can be achieved in the
market. Also enhancement in the rules and regulation can help in better growth and efficiency of
market growth and businesses in the market.
CONCLUSION
From the above information it can be conclude that there are various functions and roles
that world trade organisation play in order to provide effective growth and sustainability to the
national and international businesses. Also various roles and responsibilities that world trade
organisation play so that effective growth of economy can be done. They work for the betterment
of success of business and increase in the standard of living. Various functions world trade
organisation that work for the better growth and achievement of business in the market.
8

REFERENCES
Books and Journals
Acosta, A.S., Crespo, Á.H. and Agudo, J.C., 2018. Effect of market orientation, network
capability and entrepreneurial orientation on international performance of small and medium
enterprises (SMEs). International Business Review, 27(6), pp.1128-1140.
Agbim, K.C. and Eluka, J., 2018. Social network and family business internationalization in
South Eastern Nigeria. Journal of Accounting, Business and Finance Research, 3(2),
pp.64-74.
Chari, V.V., Christiano, L.J. and Kehoe, P.J., 2021. 12 Policy Analysis in Business Cycle
Models. In Frontiers of business cycle research (pp. 357-392). Princeton University
Press.
Cooley, T.F. and Hansen, G.D., 2021. 7 Money and the Business Cycle. In Frontiers of business
cycle research (pp. 175-216). Princeton University Press.
Cooley, T.F. and Prescott, E.C., 2021. 1. Economic Growth and Business Cycles. In Frontiers of
business cycle research (pp. 1-38). Princeton University Press.
Dima, A.M., Dima and Mahagaonkar, 2018. Doing Business in Europe. Springer.
Gonzalez-Perez, M.A., Lynden, K. and Taras, V. eds., 2019. The Palgrave handbook of learning
and teaching international business and management. Switzerland: Palgrave Macmillan.
Gray, D.E., 2019. Doing research in the business world. Sage.
Greenwood, J., Rogerson, R. and Wright, R., 2021. 6. Household Production in Real Business
Cycle Theory (pp. 157-174). Princeton University Press.
Oviatt, B.M., Maksimov, V.R. and McDougall, P.P., 2021. International entrepreneurship.
In World encyclopedia of entrepreneurship. Edward Elgar Publishing.
Prud’homme, D., 2019. Re-conceptualizing intellectual property regimes in international
business research: Foreign-friendliness paradoxes facing MNCs in China. Journal of
World Business, 54(4), pp.399-419.
Rouwenhorst, K.G., 2021. 10 Asset Pricing Implications of Equilibrium Business Cycle
Models (pp. 294-330). Princeton University Press.
Studlar, D.T., 2019. Tobacco control. University of Toronto Press.
Takino, M., 2020. Power in international business communication and linguistic competence:
Analyzing the experiences of nonnative business people who use English as a business
lingua franca (BELF). International Journal of Business Communication, 57(4), pp.517-
544.
Xu, K., Hitt, M.A. and Miller, S.R., 2020. The ownership structure contingency in the sequential
international entry mode decision process: Family owners and institutional investors in
family-dominant versus family-influenced firms. Journal of International Business
Studies, 51(2), pp.151-171.
Online sources.
Reem Heakal., 2021., understanding of the motivations behind the formation of the World trade
organization. Available through: <https://www.investopedia.com/investing/what-is-the-
world-trade-organization/>
Kym Anderson., 2021., Demonstrate an understanding of the key functions of WTO. Available
through: <https://www.britannica.com/topic/World-Trade-Organization >
9

Krishnamurthy. p.,2021. To enforce or mange: An analysis of WTO compliance. [Online]
available through:<https://law.emory.edu/eilr/content/volume-32/issue-3/articles/
enforce-manage-analysis-wto-compliance.html>.
Tripti., 2021., WTO and the challenges facing the organisation in achieving its principle aim of
encouraging trade between countries. Available through:
<http://www.legalservicesindia.com/article/1320/Successes-and-failures-of-the-World-
Trade-Organisation.html>
10