International Business: Analyzing the World Trade Organization

This report provides a comprehensive overview of the World Trade Organization (WTO) and its pivotal role in international business. It delves into the WTO's core functions, including trade negotiation, dispute resolution, and the promotion of trade liberalization. The report examines the motives behind the WTO's establishment, highlighting its significance in fostering global trade and resolving conflicts among nations. It analyzes the effectiveness of WTO policies, particularly their impact on developing countries and various international organizations such as the ILO. The discussion encompasses the WTO's influence on trade agreements, economic growth, and employment opportunities, while also addressing the challenges it faces. The report emphasizes the importance of the WTO in creating a fair and stable international trading system, promoting economic cooperation, and contributing to global peace and prosperity. Furthermore, it explores the WTO's role in harmonizing trade measures and facilitating the expansion of trade, particularly for developing nations.

International business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................2
Understanding of motive behind World trade organisation........................................................2
Key functions of WTO................................................................................................................3
Assessment of WTO and its effectiveness...................................................................................4
Specific organisation affected by policy of WTO.......................................................................4
ANALYSIS AND DISCUSSION...................................................................................................5
CONCLUSION AND RECOMMENDATION..............................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
Present report has discussed about the various motives of World trade organisation. It has
been analysed in report that negotiation is one of the most important jewel which has been
followed by WTO. It has also been analysed that organisation has been involved in solving the
trade disputes. It has given rise to peace and better conditions related to trade in every country.
The policies which has been made by world trade organisation is mostly and really beneficial for
developing countries. They have been able to improvise economic condition of their country.
This has assisted them in making sure better business relationship is maintained in different parts
of country. It has also been analysed in report that the policies which has been made by WTO
affects various organisation such as ILO. In this the policies of labour department are being
designed according to WTO. Report has also provided details that the trade disputes between
countries has been reduced. It has also been analysed in report that by WTO policies has given
rise to equality in trade agreements. It has led to settling down of disputes and conflict in so
many of countries. It has led to economic growth of company and also because of this the
conditions of country have been improved.
INTRODUCTION
International business can be defined as the process of selling and purchasing goods
internationally. In this the trade of goods and services is being done and also technology, capital
and knowledge is being traded across borders. The services are being provided at global or
transnational scale. Present report will lay emphasis on World trade organisation. It is an
organisation who is been engaged in increasing liberalisation of trade and also increasing
flexibility of countries so that they can be engaged in doing international trading easily. It is
really useful for developing countries. Organisation is also being engaged in doing negotiation so
that the conflict faced by different countries in doing trade can be reduced and lowered down. It
has also been analysed that WTO is being involved in affecting the trade policies of different
countries which has assisted them in enhancing peace among them. Present report will lay
emphasis on Understanding of motive behind World trade organisation. It will also provide
details about Key functions of World trade organisation. Assignment will give details related to
Suitable of WTO and challenges facing the organisation.
1

LITERATURE REVIEW
Understanding of motive behind World trade organisation
In accordance with Bahoo, Alon and Paltrinieri, (2020) the world trade organisation is the
only one international organisation which deals with the work related to international trade. The
WTO is really essential as this firm is been engaged in assisting business so that they can operate
effectively in a complex environment. It is really useful in solving of disputes which can be
faced around the globe. It has also been analysed that the WTO objective is to provide assistance
to most vulnerable countries around the globe. It has also been analysed from the research that
WTO has objective to maintain world peace. They are being engaged in lowering down the trade
tensions between different countries which is really necessary to be done. Major function of
world trade organisation also includes doing negotiation so that trade tensions can be lowered
and reduced down. Research has provided the details that WTO has sole purpose of easing
liberalisation of trade in services so that the trade flexibilities of countries is been improved. This
organisation is really being useful for developing countries as they can easily export their goods
and services internationally. This has assisted so many developing countries in increasing their
economic capacity and they have also been able to grow with the help of this organisation. When
the economy of world was turmoil this organisation was build up so that better support can be
provided to trade related agreements. Essentially the reason for setting up of the World trade
organisation was different. One major reason was to avoid a repeat of destructive trade tension
before the World War 2. So many of the countries have been agreed to trade which are most
global now. It has been analysed that there are various rules and regulations related to trade
implemented by WTO. This is because going global means countries also wants their
counterparts to play by rules.
The role of global institutions in policy trade has assisted in promoting growth. It has been
analysed that WTO was being founded in year 1955 and it has about 150 countries participating
in trade policies. The negotiation made by WTO is ground rule for doing the international trade.
This organisation has assisted the countries in doing international trade and also because of this
company the knowledge of them to do the international trade has been increased. Various
countries have been agreed to trade policies such as tariffs. They have been able to create
equality in all the trade aspects which has been performed.
2

Key functions of WTO.
As per the view of Buckley and Casson, (2019) there are various functions which has been
performed by world trade organisation. The company is being engaged in settling disputes and
reducing tensions of trade. The settlement of disputes is being considered as jewel function of
WTO. The trade rules made has assisted in stabilising world policy. It has helped countries in
sustaining growth. After the world war 2 so many countries have negotiated on trade rules and
this has now been entrusted into World trade organisation. The WTO has most unique
contribution for settlement of disputes. Now so many countries have been engaged in doing the
global trade and increasing their GDP of countries. Evidence provides details that WTO is also
been engaged in following the two most fundamental principles of the trade policies. This has
assisted trade to flow smoothly and also providing countries a fair base so that they can fight
against disputes and negotiate on matters. The WTO has played most important and vital role in
making the trading system better. It has developed confidence of countries so that they can be
able to cooperate with each other and negotiate on trade agreements.
WTO has also assisted in cutting down the costs and making sure that living standards of
people are being increased. This is because trade system of WTO has lowered down trade
barriers with the help of negotiation and with the result of this they are been able to reduce cost
of living which was really necessary to be done. Trade opening since 1945 has boosted US
annual incomes by $1 trillion, or $9,000 per household, according to the US government.
Evidence has provided details that European union has taken the third major turn after the
liberalisation policy adopted by the WTO. It has also been analysed that major function of WTO
trade related agreement was to enhance economic growth and also to increase employment
opportunities. The main reason behind this was as organisation was going global they were able
to recruit more and more people by expanding their business opportunities. This has assisted in
increasing the economic growth of country.
It has also been analysed that by these trade agreements the country has been able to grow
and also they have been able to achieve me Suitable of WTO and challenges facing the
organisation. It has also been analysed that these trade agreements have assisted the firms in
expanding globally. The global trade agreement has provided benefits to various people. Because
of this they have been able to make their relationship with the people of other culture and
custom. This has assisted them in making sure that adequate profit is been earned. Negotiation is
3

being done by following trade agreements which has been made by World trade organisation.
This has made trading better and also because of this various rights of workers have also been
protected. They have been able to become part of fair trade agreement and conflict was also
being resolved with help of this.
Assessment of WTO and its effectiveness
In the opinion of Buckley, Enderwick and Cross, (2018) WTO plays a significant role in
international trade. It was formed to maintain and control trade at global level. It ensures that
trade flows smoothly as per rules and regulation formed by them. Besides that, the assessment of
WTO is that the various stakeholder related to government agencies as well as private sector use
WTO assessment needs. This is done to conduct a situation analysis and find out what are gap
occurring in their country and how it can be overcome. Thus, they use WTO trade facilitation
agreement to do so. Moreover, stakeholder find out special and differential treatment SDT in it.
In addition, WTO dispute settlement system is also effective. It is found that limited retaliatory
authority from developing countries might make complaints in case rules are not imposed in their
favour. Apart from it, small and developing countries workout self-constraint in their struggles in
order not to threaten the privileges that they rely on, including development aid and unilateral
trade preferences.
The effectiveness of WTO assessment is that it helps in ensuring that trade runs smooth
in both nations. In that members of WTO can engage and work as policy and plan. Also, if there
occurs dispute then it can be easily solved in effective way. In decision making the principles of
WTO is followed and also success of developed country is reviewed. The assessment takes
interest of all members in reaching settlement. This system is having a high success rate in
solving dispute than other association or organisation. The system works in a proper and ordered
way. The increase in participation especially of developing countries is also an effectiveness. By
that stakeholder are able to involve in developmental programs initiated. In this way trade
barriers are removed and structural changes are made.
Specific organisation affected by policy of WTO
In the opinion of Cherunilam, (2020) there are various organisations who are been affected
by policy of WTO. It has been analysed organisation such as international labour organisation,
International monetary fund, IPPC, ITC, WHO, WIPO etc. are been affected by the laws and
4

policies passed by WTO. For example, the ILO standards has made according to policies
designed by WTO.
ANALYSIS AND DISCUSSION
It has been analysed from the above discussion and review of literature that WTO is been
engaged in making various global policies. So many of the countries have been agreed to trade
which are most global now. It has been analysed that there are various rules and regulations
related to trade implemented by WTO. It has also been analysed that this organisation is been
engaged in solving trade disputes. The WTO has most unique contribution for settlement of
disputes. Now so many countries have been engaged in doing the global trade and increasing
their GDP of countries (Nambisan, Zahra and Luo, 2019). This is the main function of this firm.
It has assisted in making trading relationship of countries better which is really necessary and
essential to be done. There is various organisation with whom the cooperation of world trade
company is really necessary. It includes food and agriculture organisation (FAO).
These are being affected by the rules and regulations which is been made by WTO. The
agreement of WTO has comprised of to harmonise sanitary as well as phytosanitary measures on
the international trade agreement. The standard and trade development facilities is the joint
initiatives which is been taken by WTO and FAO. In this the developing countries are bound to
develop SPS standards so that they can ensure health and protection for animals when the trades
are being expanded.
The World trade organisation secretary is being engaged in maintaining and laying emphasis
on the technical exchanges by working collectively with the International labour law
organisation. This has assisted in making better policies related to labour practices and specially
in the developing countries. It has assisted in making sure that the laws which are been
implemented has helped in increasing satisfaction level of labours and they work with more
productivity (Sharma and et.al., 2020). This has also supported many countries in lowering down
trade disputes which has been faced by them. The disputes with labour has also been solved
through it, which was necessary. In decision making the principles of WTO is followed and also
success of developed country is reviewed.
The organisation for economic cooperation and development also cooperates and work with
world trade organisation. In this the main level of cooperation takes into consideration the trades
based on agriculture exports, fisheries and other subsidies. In this the WTO is been engaged in
5

reviewing the trade policies so many times so that they can be able to perform their duties
adequately. This has assisted them in taking all the exports credits and making the exports better
and adequate. Trade related technical assistance is also being provided world trade organisation.
It has assisted in monitoring and enhancing process of trade. It has also been analysed that world
trade organisation is also being engaged in making use and doing the agreement with public
health departments. They have made trade policies in which the organisation has been making
emphasis on making sure that there are no health related issues which is been faced by workers
during the time of doing the exports in trades. All these policies are being made by world trade
organisation in favour of public. They have been engaged in serving public from starting. There
main purpose is to make sure that equality exists in doing all the type of trade related
agreements. The policies have assisted in helping various developing nations. The effectiveness
of WTO assessment is that it helps in ensuring that trade runs smooth in both nations. In that
members of WTO can engage and work as policy and plan. Also, if there occurs dispute then it
can be easily solved in effective way
The analysis of world trade organisation has also provided details that global policies are
been made by them. It has also been evaluated that in framing these policies related to trade
various issues are also been faced by them. They are being engaged in finding out solution to
global issues of trade so that better trading agreements existed between countries. The
developing nations have been able to go global because of this and also they have been able to
increase their business revenue by engaged in doing global trade.
The role of global institutions in policy trade has assisted in promoting growth. There are
various global organisations who has been engaged in making use of the policies which has been
implemented by world trade company. It has assisted in making the trading part really easy.
There are also various challenges which has been faced by the WTO in order to maintain their
principle aim of making sure that the trade done is better. It has also been analysed that so many
of the organisations because of the COVID-19 pandemic is facing severe challenges. They are
asking for negotiation with WTO so that they can liberalise trade agreements. It has been
analysed that monitoring the trade agreements and lowering down the disputes between 164
countries is also really challenging for world trade organisation. It has been evaluated that the
trade tensions have increased economic challenges between the countries too during these tough
6

times. The growth of economy has been lowered down because of the pandemic situation. It is
becoming tough for WTO to manage it.
It has also been analysed that there are also various other issues and challenges which is
been faced by world trade organisation. The one of the major problem is institutional issues. In
this there are various crisis situation related to negotiation which has been faced by the world
trade organisation. There has been no breakdown related to the function of negotiation. It has
also been analysed from the review of literature that there is also lack of transparency in the
negotiation which has been done by the WTO (Doh and et.al., 2017). In this the complaints are
being filed by the developing nations related to lack of transparency. They have provided the
details that world trade organisation is not been involved in making them see about practices
which has been followed and done by them. So many of the company are growing their market
through online means, so the way of working has been changed and WTO has not kept pace with
it. It has also been analysed that this organisation is been involved in following all the old rules
and regulations only. They are not being involved in updating the trade procedures which has
appear has the biggest challenge. Also it can be said that policies which are been made by the
WTO are not suitable for so many nations. They are also not being engaged in finding any
solution related to it.
There are also various challenges which has been analysed and faced by world trade
organisation. Members can currently self-designate as developing countries to receive ‘special
and differential treatment’ (Chi and et.al., 2019). It has been analysed that because of pandemic
situation everything has been shifted to online so the rules related to trading online is also one of
the challenge which has been faced by world trade organisation. They have been unable to make
better rules. It has also been analysed that agriculture and other type of development issues is
also being faced by world trade organisation. The agreement related to agriculture has targeted
the reforms which are really high in form. The agriculture department is facing issues because of
high food security and mainly developing countries are being suffering because of it. For
overcoming these issues, the WTO must be involved in making new trade rules. They should
also be engaged in considering the trade through digital trade and e-commerce. It has also been
analysed that this will assist the organisation in overcoming the challenges which is been faced
by them and also it will assist them in making trade at peace.
7

CONCLUSION AND RECOMMENDATION
From the above study it has been summarised that world trade organisation has been
engaged in engaged in doing negotiation so that the conflict faced by different countries in doing
trade can be reduced and lowered down. It has also been analysed that this has assisted
developing nations in enhancing their trade agreements and also now they have been able to
expand their company globally. It has also been analysed that there are so many countries whose
trade disputes has been solved because of the world trade organisation rules and regulations. This
has assisted them in enhancing trade relationships with other countries. The trade policies have
helped in solving the disputes between them which was really necessary to be done.
The suggestion to world trade organisation is that they can also be engaged in making sure
that equal rules and regulations is been made for every developing country. This will assist them
in making sure that no disputes exist and also it will assist in improvising economic conditions of
the developing nations. This will assist them in growing and their business transactions will be
improved. This will also assist developing nations in enhancing and improvising their
relationship with other countries and nations.
8

REFERENCES
Books and Journals
Bahoo, S., Alon, I. and Paltrinieri, A., 2020. Corruption in international business: A review and
research agenda. International Business Review, 29(4), p.101660.
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies, 50(8), pp.1424-1439.
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chi, T. and et.al., 2019. Real options theory in international business. Journal of International
Business Studies, 50(4), pp.525-553.
Doh, J. and et.al., 2017. International business responses to institutional voids.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for
international business theories. Journal of International Business Studies, 50(9), pp.1464-
1486.
Sharma, P. and et.al., 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research, 116, pp.188-192.
9