International Business: WTO and Global Trade Analysis Report

This report provides an executive summary of international business, focusing on the World Trade Organization (WTO). It defines international business as the global trade of goods, services, technology, and capital. The report discusses the motivations behind the WTO's formation, its functions, and the challenges it faces, including trade disputes and the impact of COVID-19. Key functions include administering trade agreements, settling disputes, and providing training. Challenges include handling disputes between countries and the impact of the pandemic on trade. The report also explores the WTO's effectiveness, particularly in dispute resolution, and offers recommendations to strengthen communication, improve efficiency, and enhance information sharing. The report concludes with a call for the WTO to take necessary steps to promote trade globally.

Module Title: International Business
Executive Summary
In this report international business is described and the role of world trade organization is discussed. WTO is an international
organization which trades in goods and services. It also helps in reducing and barrier, reduce and cost of production. The reason
behind the formation of world trade organization was discussed in the report. Different function of WTO is discussed. The
functions of world trade organization are global trade rules, trade negotiations, building trade capacity in developing economies,
Further, challenge that are faced by an organization in trading goods and services and achieving the principle of encouraging
trade between countries are described. The main challenge for an organization is to handle disputes. Due to disputes
organization are not able to trade properly and must face challenge to achieve their goal. The challenge are disputes between
countries and impact of covid-19 on production of goods and services, import and export of products and on the revenue of
organizations. Recommendation is provided and supply, improve like strengthen the process of communication, provide more
efficient mechanisms to much or balance demand and supply, improve usability of information sharing databases and world trade
organization need to take necessary steps to promote trade in the country.

Table of Contents
LITERATURE REVIEW....................................................................................................................................................................4
Motivations behind the formation of WTO....................................................................................................................................4
ANALYSIS AND DISCUSSION.......................................................................................................................................................8
International business practices ....................................................................................................................................................8
Concepts and theoretical framework to workplace experience .....................................................................................................9
Theory to practice in WTO effectiveness and how industries are affected by WTO policies......................................................11
CONCLUSIONS AND RECOMMENDATIONS............................................................................................................................12
REFERENCES .................................................................................................................................................................................14

INTRODUCTION
International business can be defined as trade of goods and services, technology, capital, and knowledge across national
borders and at global scale (Amadeo, 2021). It includes trading of good and services between two or more country. International
business can also be referring to as globalization. There are two factors of greater globalization, the first factor is eliminating
barriers and the second factor is technological change, generally development in transportation technology, communication.
World trade organization is only global international organization which deals with rules of trade between nations. The goal of
WTO is to help producers of goods and services exports, and importers. Official language used in WTO are English, French,
and Spanish. There are many advantages of World Trade Organization are it promotes free trade, provide legal framework for
negotiation of trade disputes, trade disputes, trade without discrimination, world trade organization is committed to protect fair
competition. In the report motivation behind the formation of world trade organization is discussed. Key function of WTO is
described – challenge face by WTO in achieving its principles and theory to practice in assessment of WTO effectiveness.

LITERATURE REVIEW
Motivations behind the formation of WTO
As per the view of Beugelsdijk., Kostova and Roth (2017) the main objective behind forming the world trade organization
is to make sure that trade flows are smooth and predictable. WTO was established to supervise world trade. There are some key
objectives for forming world trade organization are, to set and enforce rules for international trade, to monitor trade liberalization,
to resolve trade disputes, to increase the transparency of decision-making process, to cooperate with other institutions and to help
to develop countries. Members of WTO must grant equal access to the market. It is the only organizations that is dealing with
rules of trade between nations. Advantages of world trade are, it helps in increasing revenues, decreased competition, provides
easier cash flow management, helps in better risk management, disposal of surplus goods. On the other hand, Buckley and
Casson (2019) the reason behind formation of world trade organization is to operate in complex environment, for solving the
disputes and for smallest countries in global system. Many conflicts arise when one member accuses another member of
dumping. The role of WTO is maintaining balance between its member nations. By reducing the trade barriers or tariffs through
negations, the world trade organization breaks barriers between trading economies and peoples. The objective of world trade in
such a way that it will benefit every country. It helps in demolishing all the hurdles, proper utilization of resources. World trade
organization provides services all over the country.
Functions of WTO
According to Nielsen and Raswant (2018) there are various function performed by world tare organization are:

 It helps in administering trade agreements, it helps in soling and settling the trade disputes, cooperates with other
international organizations, reviewing national trade policies, provide training for developing economies, to lower trade
barriers, to help produce of goods and services to conduct their business.
 Global trade rules provide assurance and stability of global rules of trade. Usually, decisions in WTO are taken by the
consent of members and formal consent is done by parliament members. These global trade rules are the legal agreements
and contracts that gives trade rights to the members of WTO.
On the other hand, according to Buckley, Enderwick and Cross (2018) trade negotiations between general agreement on tariffs
and trade, aims at reducing tariff barriers. It includes agreements behind the border regulatory areas such as trade in services,
intellectual property, investment and trade facilitation measures and environmental issues. World trade organization rules are on
anti-dumping and subsides, issues faced by developing economies etc. Recently, world trade organization has entered into force
which provides affordable medicines to the poor economies. WTO intellectual property agreement makes medicines, and
distribute in poor economies area so that they can buy Building trade capacity in developing countries, WTO committee is
looking ahead at special need for developing economies.
It is the responsibility of world trade organisation to implement the agreements, technical assistance and increase
participation in global trade system. It helps in enhancing infrastructure and provide various opportunities in the global world.
WTO has set up standards and trade development facility which helps to develop economies in meeting the international
standards for food, safety, health, and global markets. There are some negative impacts of functions as global trade rules
agreements bind governments to keep their policies predictable which will be beneficial for everyone. The main objective behind
this is to improve the welfare of the people.

Suitability of WTO and Challenges faced by organisation in achieving its principles
In the opinion of Chi and et.al (2019) challenge faced by the organization in achieving its principles are, due to Covid-19 impact
companies are not able to trade properly. There is issue in importing and exporting of goods services. World trade organization
also not able to trade goods and services from one country to another country. So, it started providing medicines to suffer loss,
this is the negative impact of the challenge faced by the organizations. The main goal of WTO is to provide goods and services
and trade in this across all over the country. But in present situation they are not able to perform well. As the work will start only
then WTO can trade in goods and services across the country. It is the main challenge faced by WTO and they are finding the
solution. This a challenge for the organisation as they must deal with it and come out of this situation.
Disputes can be a biggest challenge faced by organisations in achieving their objectives. An example of disputes is between US
and China where both the countries are creating problems and world trade organisation has to solve the problem. It is a challenge
for the organisations to solve the issues and should focus on smooth working of the organisation. The WTO helps the
organisations in solving the disputes. Import and export of goods and services should be done properly. It is the duty of WTO to
reduce tariff barrier and focus on smooth working of the business. There are many challenges that are to be faced by the
organisations in achieving their goals and objectives. All the organisations should try to solve their issues or disputes. It is
important to face challenges in creative way so that business cannot be affected. Disputes between countries will not help the
organisation in achieving its goal of encouraging trade between countries.
Theory to practice in the assessment of WTO effectiveness
In accordance with Evenett (2019) effectiveness can be refer to as conceptual success which helps in achieving the objectives of
the dispute settlement under the three areas of WTO. The three areas include efficiency of dispute settlement, process of solving
the disputes and country participation with legal obligations. To solve or settle the disputes is especially important as it helps in

better working and more globalization. The world trade organisation dispute settlement is designed to solve the issues and
disputes.
As compare to Hajro and et.al (2021) General Agreement on Tariffs and Trade (GATT), the WTO dispute settlement provide
proper structure and formal process is followed with clearly defined goals and objectives. The legal disputes of WTO provides
Dispute Settlement Understanding (DSU) which provides principles and procedures by which members may bring their disputes
to the regime so that issues or disputes can be solved. The organisation gives platform that help in allowing members to negotiate
and resolve the issues or disputes. The World Trade Organisation focuses on providing free communication between members in
trade like, WTO has reduced trade barriers and increasing trade among countries.
The objectives of making these policies and understanding them is to increase the transparency and monitoring is done on regular
basis. It also helps in improving the quality of public debate on the issues. The members of world trade organisation encourage
government to follow the rules and policies to fulfil their commitment or promise. Agriculture agreement is also one of the
policies and rules of world trade organisation. The main aim of agriculture agreement is to reform trade (Hennart., 2019). It
makes policies according to more market focused. This means that after analysing the market needs and requirements, policies
are made so that it will be easy in importing and exporting.
The new rules and policies are applying to domestic support i.e., subsidies and other programmes that are beneficial for the
farmers. Developing countries must cut low subsidy and low tariff as compare to developed countries. Developing countries are
given extra time to complete obligations. Policies are made after doing market research and understanding the situations of the
market.
World trade organisation has to settle disputes between nations and its people. Dispute settlement is important for the smooth
functioning of the organisation and goods and services can also be delivered on time. There is particular process which is

followed for the settlement of disputes. There are various stages a dispute can pass through. At every stage, parties involved in
dispute are encouraged to interact with each other in order to settle the dispute. World trade organisations committees are
working specifically for development of economies (Kahiya., 2020).
ANALYSIS AND DISCUSSION
International business practices
WTO is an international organisation that is dealing in trade of goods and services with the global rules. The main purpose of
world trade organisation is to solve the disputes and issues. The WTO provides fair method to its members to solve the disputes
and they do not have to make big fights or war of small issues that can be solved. The main objective of word trade organisation
is to reduce the tariff barriers, to set rules and policies for international trade, it helps in providing a forum for negotiating and
make policies for further liberalization, it also provides solution to disputes as soon as possible (Buckley., Doh and Benischke.,
2017).
World trade organisation helps in increasing the decision-making process and it helps in cooperating with economic
developments. World trade organisation provides medicines to the lower part of the economy at affordable price or at low price.
It helps in promoting world trade by which every country is being benefited and disputes can be solved. The reason behind the
formation of world trade organisation is to survive in the complex environment and to solve the disputes. The organisations will
face many problems and they must solve the issues.
Appropriate methods of international market entry
World trade organisation helps to trade goods and services and importing and exporting of goods. It helps in reducing or lowering
the trade barriers between nations and people. It helps producers in providing goods and services available from other country for

the proper working of business and producers can conduct their work in systematic manner. All the activities are done by
following formal process (Witt., 2019).
Concepts and theoretical framework to workplace experience
World trade organisation applies the rule of non-discrimination, in which all the members are treated equally and there is no
discrimination based on gender, religion, caste or any other issue. This rule should be followed by every organisation so that
members enjoy doing their work and give their best. Lowering trade barriers helps in reducing the cost of production and also
reduced prices of finished goods and services (Michel, Tews and Allen, 2019).
Functions of WTO
There are many work that WTO performs they help in providing good services to the customers. They gather all the information
and provide relevant information to the customers. WTO make rules and policies to solve the issues and all can work properly.
All the workers are treated equally and they provide best services to people. Different services are provided by world trade
organisation like banks, telecommunication companies, insurance firms, transport companies, hotel chains and many others.
These principles will be appeared in General Agreement on Trade in Services (GATS).
World trade organisation helps in trade monitoring. The trade policy of WTO helps in creating a better understanding of policies
and procedures that are adopted by the members. The WTO measures or monitors daily working and global trades. After
monitoring they make changes in policies or adopt new policies for better trade. The main purpose of WTO to measure daily
performance is to implement trade facilitating and trade restricting measures (Wettstein and et.al., 2019).
World trade organisation helps in building trade capacity in developing economies as it is providing technical assistance and
training to the members for development of economies. The committee of trade and development focuses on special needs of

developing economies. For developments they are providing e- learning courses and medicines during the covid-19. The aim of
WTO behind giving training to participants is to make them understand about rules and agreements.
WTO needs to perform many functions for the betterment of the country. They are adopting new policies and making changes in
the agreements so that organisations can work properly. Trade organisations help in reducing trade barrier by applying
negotiations. Trade negotiation is an agreement between trade and tariffs .
Challenges faced by the organisation
The organisations must face many challenges in achieving its objective of encouraging trade between countries. Due to covid-19
there are lot of problems that must be faced by the organisations. During the lock down period, importing and exporting of goods
and services were stopped and there was no production of goods and services. This affect the organisations very much as they are
not able to earn revenue and they must manage all the expenses that are fixed.
As organisation wants to encourage trade between countries but this was not possible during lock down time. Now, it will take
time in proper working of the production process. Organisations have to make changes in policies and work according to that. In
this situation, world trade organisation has started supplying medicines to backward areas at affordable prices. This was one of
the biggest challenges for the organisations and they have to find solutions to face this problem or issue (Nambisan., Zahra and
Luo., 2019). As situation will become better than organisation can start importing and exporting of goods and services. The aim
of the organisation is to encourage trade between countries and revenue can also be increased. World trade organisation helps in
trading and reducing tariff barriers and helps in trade between countries by import and export of goods. Another challenge that
is faced by the organisations is disputes between countries. There are many countries that are having issues from another country.
For example, China and US, India and Pakistan and many other countries that are having disputes. So, the companies are not able
to trade between countries due to the issues or disputes. It is also a difficulty which is faced by the companies in trading. These

disputes restrict organisation in importing and exporting goods and services. World trade organisation try to solve the disputes
between countries and encourage trading system (Child,and et.al., 2017).
There are many problems and challenges that organisation will face in achieving its objectives and encouraging trade between
countries as there are disputes among different countries which need to be solve soon to achieve the objective.
Theory to practice in WTO effectiveness and how industries are affected by WTO policies
The world trade organisation must conduct daily review of policies of individual country. Intellectual property which lead
to protection and enforcement. In today's world, innovation and creativity change the pattern of international trade (Kingsley.,
Noordewier and Bergh., 2017). In this digital world people want new, innovative and creative products. Importing and exporting
of goods and services is done so that different products can be received from another country. People get new and innovative
product from other country. Companies are affected by WTO policies as they have to work according to the instructions given
by WTO. World trade organization is is made for the welfare of the people so all the companies have to follow rules made by
WTO. In this fast moving world there is lot of competition in the market so companies should make innovative products to attract
more customers. WTO provide guidance to the organisation like how they have to work, what rules they have to made and which
is followed by everyone.
The objectives of making these policies and understanding them is to increase the transparency and monitoring is done on regular
basis. It also helps in improving the quality of public debate on the issues. The members of world trade organisation encourage
government to follow the rules and policies to fulfil their commitment or promise. Agriculture agreement is also one of the
policies and rules of world trade organisation. The main aim of agriculture agreement is to reform trade (Hennart., 2019). It

makes policies according to more market focused. This means that after analysing the market needs and requirements, policies
are made so that it will be easy in importing and exporting.
The new rules and policies are applying to domestic support i.e., subsidies and other programmes that are beneficial for the
farmers. Developing countries have to cut low subsidy and low tariff as compare to developed countries. Developing countries
are given extra time to complete obligations. Policies are made after doing market research and understanding the situations of
the market.
World trade organisation has to settle disputes between nations and its people. Dispute settlement is important for the smooth
functioning of the organisation and goods and services can also be delivered on time. There is particular process which is
followed for the settlement of disputes. There are various stages a dispute can pass through. At every stage, parties involved in
dispute are encouraged to interact with each other in order to settle the dispute. World trade organisations committees are
working specifically for development of economies (Kahiya., 2020).
CONCLUSIONS AND RECOMMENDATIONS
From the report it can be concluded that, world trade organisation helps in trading of goods and services in all over the country.
WTO provide free trade through reduction of tariffs, provide legal framework of trade disputes. Proper formal process is
followed and policies are made for trade disputes. It encourages trade without any discrimination by avoiding preferential
agreements. The reasons behind the formation of world trade organisation is discussed. Key functions of WTO are described.