International Business Report: World Trade Organization Analysis

This report provides an in-depth analysis of the World Trade Organization (WTO) and its impact on international business. It begins with an executive summary and an introduction that emphasizes the importance of international business and the role of the WTO in managing global trade. The report then delves into a literature review, exploring the exchange of goods and services, trade barriers, and the WTO's role in resolving trade disputes. A critical discussion and analysis section examines the motivators behind the formation of the WTO, its functions (such as administering trade agreements, acting as a forum for negotiations, settling disputes, reviewing national trade policies, building trade capacity, and cooperating with other international firms), the suitability of the WTO, and the challenges faced in encouraging trade between countries. The report applies theory to practice by assessing the effectiveness of the WTO using relevant examples. The conclusion summarizes the key findings, emphasizing the WTO's role in promoting economic growth and managing trade relations. References are also provided.

International Business

EXECUTIVE SUMMARY
In this corporate sector, it is essential to focus on policies, practices so that business
activities are being carried out in appropriate way. WTO which is also known as World Trade
Organisation is responsible for managing of trade and barriers. This report gives a brief information
about the trade and processes. It is crucial to focus on the processes of trade activities so that
decisions are being undertaken in correct way. Furthermore, WTO is only organisation that deals in
executing of businesses and trade procedures.

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................2
INTRODUCTION................................................................................................................................4
MAIN BODY.......................................................................................................................................4
LITERATURE REVIEW.....................................................................................................................4
Critical discussion and analysis ...........................................................................................................6
Critically examine understanding of motivators behind formation of World Trade Organisation . 6
Analyse & execute the functions of WTO .................................................................................6
Access suitability of WTO & challenges facing the enterprise in achieving its principle aim of
encouraging trade between countries .........................................................................................8
Apply theory to practice in the assessment of WTO effectiveness using relevant examples of how
specific organisations or industries are affected by WTO policies. ...........................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Business is wider and broader which comprises or small, medium and large enterprises. It
is important to focus on market situations so that goals are accomplished. Main aim of this report is
to understand the importance of international business. Many organisation are there that deals in
international trade with aim of accessing to new opportunities. WTO which is also known as World
Trade Organisation headquartered in Switzerland. It is only organisation that deals with rule of trade
between nations. It was established in 1 January, 1995 and languages which are spoken are English,
French and Spanish. This report comprises of understanding of motivators behind formation of
WTO, functions of WTO, suitability and challenged faced in trade between countries and impact of
WTO as well as policies.
MAIN BODY
LITERATURE REVIEW
According to the viewpoint of (Abregom 2019) international business refers to exchange
of process of goods and products within foreign countries. The risk involved in international
business is high and it is crucial to be well aware about domestic as well as international market so
that strategies are implemented accordingly. Managing and maintaining trade relation is a time
consuming and important for business expansion which is to be done with proper considerations.
This is examined that with appropriate formation of WTO, it helps firm to make decisions and
execute their trade activities within proper manner. Problems & conflicts are about to occur when
business is being done at international level. It is necessary to have proper knowledge about these
trade barriers, so that further business procedures are executed appropriately. Moreover, with
accessing to trade barriers, it is easy for WTO to resolve problems & provide effective solutions to
international businesses.
A business and organisation is able to achieve profit as well as revenue when trade of
goods, products & services is done in proper manner. In this competitive era, many entities execute
trade activities in illegal manner with aim of achieving opportunities. It is seen that business which
execute their activities internationally often find it difficult to do trade in effective manner. Main
reason for international business is that it provide many new opportunities to organisation and it
also leads to development and growth (Ali, 2019). Trade is important for suppliers, manufacturers
and retailers on the basis of which they receive commission and profits at wider scale. With
formation of World Trade organisation, it become easier for entities to manage and maintain trade
relations between other countries. Also it is seen that they have been able to reducing many
problems and issues. In international business, information of market is required without which it is

not easier for entity to access resources in easy way.
With changing period of time, it has become essential to focus on how goods and products
are being exchanged. Moreover, many organisation faced problems within trade procedure and they
access to WTO to deal with such issues. The founders of this organisation were concerned about
how activities are being carried out within enterprises whether these are executed in fair way or not.
International business is a critical procedure which is to be done in most effective manner. It has
been stated that it is crucial for marketers to access information so that decisions are undertaken
accordingly. International trade and business require proper knowledge of market without which it
is not easy to do the trade in correct way or else complexities can occurred at larger level. It is
beneficial for entity to access to WTO as they will be able to manage trade relations & problems in
well organised way. GATT mainly focuses on trade in goods but WTO focuses on trade in services,
inventions & designs. There are several types of businesses that copy the deign or name of other
enterprises or make adapt the same business with similar name this often leads to conflicts. This is
main reason for formation of World Trade Organisation.
Suppliers, manufacturers, retailers and organisation are important and main ensure that trade
activities are done with proper considerations. Through managing of better trade relations, it is easy
to achieve goals & objectives within time period. Organisation scan the business environment and
on the basis of which they are able to access trade policies, agreements in effective manner. There
are different types of international business such as franchising, licensing, outpouring and
offshoring, joint ventures & strategic partnerships etc. It depends on organisation to chose the most
appropriate form for internationalising of business. Furthermore, it is too stated that work of WTO
revolves around across the world within trade area. The access to international business, leads to
use of resources at optimum level, hiring of skilled employees, etc. This is seen that World Trade
organisation main aim is to sort out trade problems through negotiations. With help of negotiation,
it is easy to understand the situation and point of view others. Main benefit of international trade &
businesses is that they increases the development and growth of country's economy at higher level.
Also, it is further stated that effective tactics are to be used so that benefits are achieved at every
aspects in most efficient manner. Trade relations mostly comprises of conflicting interests,
agreements that comes in line of WTO. Many policies, regulations, other systems were changed
with time period of business and other processes. It was necessary for every entity to have eye on
trade activities because problems can occur at any time and at any aspect. It is analysed that surveys
and interviews are also taken by World Trade Organisation in order to access the root cause of
problems in correct way.

Critical discussion and analysis
Critically examine understanding of motivators behind formation of World Trade Organisation
WTO is an international entity that deals in global trade among different nations. It was
created in 1995. In this changing and global business, it is essential to analyse the trade is important
when business execute its activities and functions at global level. Any errors or problems that occur
within trade, WTO is ready to solve such problems in effective manner. It was born out of General
Agreement on Tariffs and Trade (GATT). The motivators formed the organisation to make ensure
that trade or exchange of goods is being done in proper manner (Andrews, Schank and Upward,
2017).
Before the creation of World Trade organisation, GATT was to be considered as only entity
that deals in governing the process and procedure of international trade. When WTO was created
and developed it took the major responsibility of managing trade relations, invent[ions etc.
Furthermore, this organisation has 164 member in countries, with Liberia and Afghanistan who
joined in July 2016 & 23 observer countries. This enterprise oversees and rules trade among
different nations, increases globalisation with positive as well as negative affects, provided line of
communication between international business & trade countries. The motivators who formed
enterprises focuses on managing barriers at international trade to improve positive relationship
between countries. In trade countries, like U.S, China, India, United Kingdom, it is difficult for
them to do supply of goods or products without use of negotiation as tool & with consideration of
WTO.
Thus, from above matter it is seen that formation of WTO has increased the importance of
trade and which is also beneficial for development of economy. It helps many entities to execute
their business activities on basis of foreign exchange is increasing at rapid scale.
Analyse & execute the functions of WTO
The formation of WTO has assisted many firms to develop their business activities at higher
scale. It is large firm and deals at both domestic and international level. The roles and
responsibilities of enterprise are wider as well as broader. Also, there are different types of functions
which are being performed by WTO and are discussed as follows-
 Administrating trade agreements- It is important function which is required to focused as
in this organisation aims at managing of trade agreements between two or more than two
countries. Through managing of trade agreements it is easy to resolve conflicts prior to the
occurring of problems. Supervisors in firm make assure that agreements are mutually
understood with proper considerations (Benz, Ferencz and Nordås, 2020).

 Acting as forum of trade negotiations- It is another crucial function which is to be
critically executed as in this WTO act as a mid party between trade enterprises and with help
of negotiation they solve the conflicts easily. Acting as forum trade negotiation leads to
accessing to root cause of problems in effective manner. With this function, it is easy to
execute the business activities in proper manner.
 Settling trade disputes- It is also another function in which is focused by entity as in this
main role of WTO is to settle up the trade disputes between entities, trade supervisors etc.
Through this function, it is easy to make decisions in effective manner. To manage this
function, chosen firm has high skilled employees who has capability to manage and solve
the issues in appropriate way (Besedeš and Cole, 2017).
 Reviewing national trade policies- It is essential function of WTO in which it focuses on
examining and analysing of national trade policies in proper manner so that all rules as well
regulations are properly adopted. In relation of World Trade Organisation, they too focuses
on national trade policies as it help in understanding of proper governmental rules.
 Building trade capacity of developing economies- In this function of World Trade
Organisation, main role of firm is to increase the capacity of developing countries by
accessing to trade business in proper manner. Moreover, it too helps in enhancing of
economy capacity at higher level.
 Cooperating with other international firm- It is too crucial function of WTO, in which it
states that WTO aims at development of cooperation and coordination between international
enterprise. With this function, organisation is able to improve their effectiveness in
international business when cooperation as well as coordination is rolled out. Cooperating
with other country is important when it comes to international business so that trade is
carried out in correct way (Beugelsdijk, Ambos and Nell, 2020).
Therefore, from above discussed function it is analysed that it is necessary to states about
roles and function of entity in proper manner so that goals and objectives are achieved in proper
manner. Furthermore, it is also seen that it is critically important to focus on such type of functions
so that everything is being done in proper manner. It is duty of manager as well as HR of firm to
make assure these functions are being appropriately used & applied in well organised way.
Access suitability of WTO & challenges facing the enterprise in achieving its principle aim of
encouraging trade between countries
WTO is international firm that aims at protecting of trade between foreign countries. It is
critically crucial to be well aware of suitability of WTO so that decisions are made properly. The
entity is easily accessible to every trade country on basis of which they ruled out their functions as

well as operations. Encouraging trade between countries is not easy and which require proper
knowledge of countries and their market. Furthermore, it is too stated that WTO scan environment
ans then strategies are used to encourage trade relations between countries. Developing trade
between countries is to be considered as primary principle of selected entity. There are various type
of challenges that are being faced by World Trade Organisation and are further mentioned as
follows-
 China's state capitalism- It is first most issues which is being faced by WTO at current
point because China's state owner entity present a big challenge to free market global
trading system. Also, the set of rulebook of WTO does not fit into China's standards &
policies.
 E-commerce and digital trade- With rapid changing of trade as well as business sector, the
rule & regulations of chosen firm is unable to keep up their speed appropriately. Further, it is
too analysed that with e-commerce and digital trade is become important to focus on
because they are being at trending point & every business is linked with digital as well as
technology. The rise of e-commerce & digital trade is impacting upon international business
at wider scale (Hannibal and Knight, 2018).
 Agriculture and development- Agriculture trade is too focused by WTO. The issues is
faced due to food security & development requirements for developing countries like India.
So, it is major issue which is faced by selected entity when comes to development of trade
relations. Moreover, it is not possible for organisation to fulfil all the requirements of
agriculture development as it require huge investment and source of funds. So, in context of
chosen firm they focus on this function in well organised way.
 Environment sustainability- This is too major issue encountered by WTO in which UN
SDGS & Paris Agreement Climate Goals play important role in development of
environment sustainability. It makes it difficult for WTO to apply their rules into protecting
of environment.
Thus, explained functions states it is essential for World Trade Organisation to focus on
accessing to their roles and responsibilities in such a way that positive outcomes are achieved &
issues are resolved in most efficient way. Due to flexible market situations, it is becoming difficult
for WTO to access all changes in proper manner (Heuser and Mattoo, 2017).
Apply theory to practice in the assessment of WTO effectiveness using relevant examples of how
specific organisations or industries are affected by WTO policies.
The WTO focuses on trading within product, services as well as intellectual property between
participating nations by offering a framework that help in negotiating trade agreement that usually

focuses on reducing trade barrier as well as restrictions. In these process. There are different kind of
agreement given by representative of government and as well as rectified by legislation. The WTO
also focuses on administrating Independent resolution of dispute and forcing adherence of
participant related to trade agreement and resolving different kind of trade connected disputes.
Therefore, it is assess that WTO impose positive effect on the International Organisation. Also the
focus is on prohibiting discrimination among partner of trading but offer protection of atmosphere
security as well as other important or significant goal (Martinović and Matana, 2017). Therefore the
main purpose of WTO is to decrease trade barriers that help in conducting different task and
activities in an appropriate manner. It is also helpful in achieving goal as well as objective in timely
manner. Therefore the WTO focuses on conducting every activity and function of International
Organisation in an appropriate manner. It is also helpful in accomplishing goals as well as objective
in timely manner. Apart from this, here in the management team of International Organisation
focuses on reducing trade barrier that help in performing different functions of Organisation in
proper way. It is also helpful in attracting large number of user towards their product and services
across the world. It is also helpful in increasing profit margin of company which will be helpful in
future period of time.
Therefore, there are different kind of WTO policy which impose positive effect on operation
and functions of business organisation and the International Organisation focuses on implementing
different task and activity in such a manner that help in attracting ample of user at Marketplace.
Therefore it is necessary to consider WTO policy for the smooth running of business organization.
In assistance of this, it helps in increasing experience level of user towards product and services
provided by business organization. That WTO focuses on making appropriate agreement with
international organization for executing different task in proper way. The policies of WTO are
essential and it is important to focus on these policies so that proper trade activities are being
carried out. It is also seen that it is necessary to states about rules and regulations in proper manner
so that organisation is is able to execute their business activities in proper manner. Furthermore, it is
responsibility of manager to make assure that policies are regulated (Nambisan, Zahra and Luo,
2019).
CONCLUSION
After a brief analysis of above report, it has been concluded that it is important to focus on
trade and barriers when it comes to international business. It is crucial to be well aware about
different market situations so that it is easy to achieve objectives. So, discussions have been about
WTO and international business, formation of organisation, functions of WTO, challenges faced by
WTO and theories as well as practices affected by WTO policies. This has been evaluated that it is

necessary for firm to have positive relations so that trade is done in proper manner. In this
competitive market, it is important to focus on these aspects of trade so that objectives are
achieved.
REFERENCES
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database and composite indices. The World Economy. 43(11). pp.2860-2879.
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gravity” model. Review of International Economics. 25(1). pp.148-164.
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international business theories. Journal of International Business Studies. 50(9). pp.1464-
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Reiter, J. and Joosub, S., 2017. Democratizing trade, breaking down barriers with digital
technology. In International Trade Forum (No. 4, pp. 18-19). International Trade Centre.
Shaheer, N.A., 2019. Reappraising International Business in a Digital Arena: Barriers, Strategies,
and Context for Internationalization of Digital Innovations.