International Business: WTO Analysis Report, Level 5, Suffolk Uni

This report provides a comprehensive analysis of the World Trade Organization (WTO) and its role in international business. It begins with an executive summary and introduction, followed by a critical analysis of the WTO, examining its objectives, functions, and impact on global trade. The report explores how the WTO promotes global trade through its policies, including the standardization of customer processes, simplification of trade actions, and the removal of trade barriers. It discusses the WTO's influence on international business practices, including economic, financial, social, cultural, and political factors. The report also highlights the benefits of WTO membership, such as trade liberalization and the simplification of business processes, while also addressing the risks and challenges faced by developing nations in the global trade environment. The report concludes with a discussion of the WTO's role in the digital age and its impact on international business, global economics, and legal and political issues. The report references various sources to support its analysis and provides insights into market selection techniques and the impact of the WTO on country membership, risks, and challenges.

INTERNATIONAL BUSINESS

Executive summary
WTO (World Trade Organisation) was established to regulate the trade environment all over
the globe with an authorisation to comply with certain rules such as country`s commitments
on tariffs, liberalisation of the service market, and the agricultural subsidies (World trade
organisation, 2019). WTO has standardized and simplified customer process, centralised data
of the information, measures to simplify the trade actions, removal of red tape that is known
as the trade facilitation. It has become as one of the important subjects in the negotiations.

Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Critically analyse of World Trade Organisation....................................................................................3
Promoting global trade today with proper illustrations with WTO policies...........................................5
Conclusion...........................................................................................................................................10
References...........................................................................................................................................12

Introduction
This report will present an analysis on WTO`s assistance in promoting global business in
today`s era. This analysis will carry the relevance of practises related to international
business, reasoning behind the creation and establishment of WTO and also its role behind
promoting cross border globalisation (World trade organisation, 2018). This will analyse
recent patterns related to international trading and its investment that would also come up
with market selection techniques. The report consists of specific illustration as being how
organisation affects country`s membership related to WTO inclusive of risks and challenges
(World trade organisation, 2018).
Critically analyse of World Trade Organisation
WTO (world international organisation) is a renowned international institute who has the
purpose of promoting free trade with pursuing the organisation to remove import tariffs with
other barriers. It is closely related to globalisation. The main objectivity is to help the trade
flows fairly, smoothly and predictably (Weissman, 2017). Abolishment of discriminative
nature of business helped the emergence of WTO with few features. WTO promotes non-
discrimination, stability of the trading system, free trade, huge range of issues, decision
related to meeting at ministerial level, multilateral trading system, and promotion of fair
dealings in terms of competition (Javorcik, and Narciso, 2017). For the trade commodities,
easy market access was the main aim of associating with WTO and their ability to develop
the country`s exports and plan to sell it to the developed country. Another motivating factor
that WTO avails is current negotiation facility during the trade reformation that is the effect
of increased exposure to the competition on the resources for poor farmers. WTO was started
on 1 Jan 1995 after signed by 123 countries. WTO is a mutual agreement under Marrakesh

agreement by replacing general Agreement on trade and tariff (GATT) started in 1848. WTO
is a largest economic organisation at global level (World trade organisation, 2019).
Globalisation is the consequence of less restriction trading in terms of goods, technology,
capital, and services. It is seen that the organisation has been confronting various problems in
regards to the restriction of the growth related to trade barriers to international trade, piracy,
financial assistance, and breakdown of intellectual property rights. WTO avails global
platform for the signatory nations to combine and discuss upon the issue that can result into
generally accepted solutions for smooth transition for the free trading regimes (Javorcik, and
Narciso, 2017). WTO contributes to the development of bilateral agreements free goods,
services and the technology. Some of the main functions and reason for its establishment
related to look after the administration as signed at the Uruguay Round. WTO has
transformed the international business and practises which is being influenced by economic,
financial, social, cultural, political factors after collaborating with other business enterprises
(Bown, and Mavroidis, 2017). The main feature is to keep a check on implementation of
tariffs and reduction of the non-tariff measurements. The feature is to keep a check on foreign
trade policies of member nations where it is important to see policies complying with the
WTO guidelines. GATT was a temporary agreement that is needed to codify the rules and
regulations of emerging trading time and government and finally continuing with a most
significant minimising the effect of barriers for the trade (Javorcik, and Narciso, 2017). It
enacted some business principles with the understanding of non-discrimination, reciprocity,
transparency safety values, commitments to enforcement, and binding them. The main
objectivity to establish WTO is to set certain rules and regulations for internationalisation
trading, avail a forum of negotiating and checking the trade liberalisation, promote
transparency while making decision, cooperation with other international economic agenda,
and solve several trade disputes (World trade organisation, 2019). The functionality of WTO

is to assist the goods and services producer to export, import, and conduct any other
businesses. US allocation is a strong-minded while pressing the country to finish the biased
trade practises and US is a most enthusiastic place to reduce the high tariffs conventionally.
The GATT was certainly a collapse with the unsuccessful diminishing the biased trade
business with no rulebook as found by global trade association. ITO contract finally agreed to
pass on to make approved ITO approval and character relating to the establishment as
departed with the interim name of GATT. GATT negotiating with tricky because of feeble
conditions of most war economy and the related BOP.
Promoting global trade today with proper illustrations with WTO policies
Domestic services can be favourably BOP issues that have separate barriers to import and
other rendering of open-minded trade policies. WTO is to lay down several methods for the
arrival of the harmonious solution in regards to the trade conflicts. WTO can also provide
required consultancy to the group members leading to the development of world economy.
This can avail global platform so that member nations can perpetually negotiate the exchange
of the transactions and its related concessions. Sustainable development and preservation of
the business nature are some of the fundamental objectives of WTO (Weissman, 2017). Its
objective is to reduce the trade barriers and reduce the discriminatory treatment in regards to
the international relations. Although, there is no special agreement dealing within the
environment under the WTO regulations and rules with the adoption of trade measures that
aimed to protect environment by applying numerous conditions while avoiding the misuse of
measures for the protectionist ending (Javorcik, and Narciso, 2017). Working in the world
trade organisation will regulate trade and environment committee where it is a standing
forum as being dedicated between the governments and the policies related to trade
(Weissman, 2017).

With recent developments, it is seen that digital technologies includes internet of things,
additive manufacturing, block chain, and artificial intelligence have achieved with the
exponential increase in its bandwidth, digital information, and the computing power. WTO
has found that digital technologies have reshaped the consumer habits by changing the
purchases online with the widespread use of the internet-enabled devices that can avail direct
access to the online markets.
WTO (world trade organisation) plays a crucial role in the international business, global
economics, legal, political issues due to globalisation. The benefit to countries as being the
member in WTO is the liberalisation of related barriers. Most of the benefit and essential
principles stay at the heart of system with simplifying the enterprises processes. For example-
Trade can allow division of labour between the nations in an efficient manner for production.
WTO`s trading system often offer more than this. It can enhance productivity while cutting
the costs as principle that is more important enshrined within the system as being designed to
create a life simpler. Another example implies that WTO coordinates different rules and
regulations of different custom duty rating for the imports for upcoming from varied trading
partners. If a company in one nation wants another country to import raw material and
components when copper for wire making or the touchscreen for the electronic equipment for
its production. It can not be enough for any organisation to look into prices as being offered
by the suppliers in the world. For example- imagination is needed when government
announces, as it will charge same duty rates for the imports from all the nations that will use
the same regulations for products by checking whether it is imported or locally manufactured.
Examples of non-discrimination while conducting the international transaction is seen as one
of the important principle by including transparency (concise data regarding the policies,
regulation, and rules), increased risk free environment regarding the trading conditions
(covering the commitments to enhance the other nations accessibility to one market that are

legally blind to the lower trade barriers). The saving can be streamlined as procedures can be
near to two to 15 percent of value of the goods being traded as per the estimates by the
(OECD) organisation for the economic cooperation and development. The World Bank says
that while supporting the facilitation reform in the developing and developed countries there
is a greater chance of economic benefits $70. Africa has been experiencing improvements in
regards to the investment related to border crossing slashes from the three crucial days and
hours that might allow the goods to move much faster between two places (Kolk, 2016).
Developing nations faced numerous risks that are linked to trade. The other important
disturbing conditions of trade matters where the global prices of the goods will be exported as
they are inclined to decrease in case of excess family members engaged in it (Kugler, 2017).
There is a difficulty regarding the instability of the prices that are strong minded in the
market beyond the impact of poor countries (Kolk, 2016). Most importantly, farmers of
underdeveloped country are easily stuck by the natural calamities, as they do not have
adequate resource and finance. Therefore, they are the price takers as bring dominated by the
developed nations streamlining the international market with the national trade (Pauwelyn,
2016). These small economies cannot affect the world prices of the market as they contribute
to the relative market size of market. A subject has been increasingly tendency the changes
that are dramatic and unforeseen for multinational organisations in order to capture the
benefits and comparative advantages with the virtue in regards to the monopoly location.
Either changes worldwide trading will result into food safety directly or indirectly
(Khoshnood et al., 2015). The belongingness of the previous revealing liberalisation
occurring the identical time that can push it in either same direction or the other (Zhao, and
Lazor, 2019). Changes with the worldwide trading rule as either being resulting into food
safety directly or indirectly, which will lead to affect local dealings (Grima, Winczewski,
Mizzi, Grech, Cauchi, Gatt, Attard, Wojciechowski, and Rybicki, 2015). This is standardised

through structure as being flanked by a person and above the marketplace (Khoshnood et al.,
2015). The collision of liberalisation with the country`s trading policy in regards to foodstuff
safety that is probably stable in regards to international trade policy (Khoshnood et al., 2015).
Liberalisation occurs at identical times as other things changed that will finally push in either
same or different direction (Grima, Winczewski, Mizzi, Grech, Cauchi, Gatt, Attard,
Wojciechowski, and Rybicki, 2015). Domestic monopoly will mute the transmission
regarding any price signals when rural infrastructure has been degraded with a transaction
cost exceeding the price marks (Bown, and Reynolds, 2017). Government act in a consistent
manner where it is quite difficult to decide and perceive to what extent liberalisation will
happen (Khoshnood et al., 2015). Once tariffs are applied to bound the rates, which are
detailed in regards to food security and it still impact the tariff like taxes such as the special
duties will finally apply to it with the help of principle (Bown, and Reynolds, 2017). If the
tariffs rates are applied once below the bounding rate as frequently being raised and lowered
with the results of doubts on the traders with their performance that is an important in the
entire part of their belongingness regarding the first liberalisation (Bown, and Reynolds,
2017). The foundation of agriculture avails with extreme support and the incentive for the
trade barriers, which not at all an instrument of protection. If the rich nations subsidise the
food policies for its consumers and also import food with an presumption that it could meet
the requirements of people (Ever, Caseload, Pauwelyn, Broos, Trebilcock, Tax, Beyer, Kim,
Sauve, and Duran, 2018).
WTO might experience unfavourable conditions in various different ways as it can pressurise
people. Decision made by the consensus and with the agreement are approached by all the
union members (Kolk, 2016). The reason and approach behind negotiation is its accessibility
of power in the decision-making (Staiger, and Sykes, 2017). Moreover, this agreement
certainly apply to all the nations (members) (Bhagwati, 2017). Rich and poor countries

challenge each on the part of liberalisation that remained a challenge in WTO`s dispute
settlement processes. In several approaches, it is seen that small countries often enjoy free
trade while imposing the increased bargaining power of powerful economies (Zhao, and
Lazor, 2019). These strong countries are free to impose unilateral rules and regulations on the
small trading organisation (Davis, and Wilf, 2017). Small companies deal with major
economic power and authorities (Ryu, and Stone, 2018). These less empowered countries
face less use of opportunities with the formation of alliances and thinking of pooling
resources on the other hand, there are matching benefits to the larger countries (Zhao, and
Lazor, 2019). There are major single forum of WTO, who can negotiate with its trading
partners especially when it is a difficult bilateral negotiation with different complication
ending up with only importers and exporters (Staiger, and Sykes, 2017). Although, the
principle of non-discrimination can build into a WTO agreements while avoiding the level of
complication in regards to the trade regime. Protection is quite expensive when it leads to
increase in prices (Ryu, and Stone, 2018). WTO globalised system lowers the trade barriers
with negotiation and on the other hand applying the core prinjciple of non-discrimination
(Zhao, and Lazor, 2019). This has lastly resulted into reduced prices of the finished products
and services leading to low cost of living (Staiger, and Sykes, 2017). There are several
studies, which can show the impact of protectionism with free trade (Gysi, Voigt, Miranda
Fragoso, Almaas, and Nowick, 2018). For example- important barriers with the high custom
duties have combined while raising US textiles and its relative clothing prices by 58 percent
in 1980s (Pauwelyn, 2016). The consumers of UK are estimated to pay more each year £500
clothing as due to this restriction for the Canadian bill round of 780 million dollars on the
annual basis when it had not been minimised in 1980s and 1990s (Bown, and Mavroidis,
2017). The clothing trade and the textile trade has been going a great reform as this
programme includes reducing certain restriction on the import quantity (Ryu, and Stone,

2018). Recent research has led to production of few correct data where economist can
estimate trade barriers (Davis, and Wilf, 2017). Economists will estimate cutting of the trade
barriers in several sectors such as manufacturing, services and agriculture from which one-
third of the economy will boost by $615 billion adding to the size of Canada`s world
economy (Zhao, and Lazor, 2019). Trade will considerably boost the income level as trade
will poses severe challenges and threat as being faced by the domestic producers by facing
the level of competition from import level (Staiger, and Sykes, 2017). There is always an
additional income possessed by the government in order to redistribute the advantages and
benefits from the assets of the nation (Gelaidan, and Abdullateef, 2017). For instance- while
helping the organisations and the workers adapting to become more competitive and
productive where they are already going and switching the activities (Bown, and Mavroidis,
2017). For example- if the domestic production is less leading to together increase in the
demands. There is a proper issue and relative power of questions with respect to different
factors and the institutional aspects of other more countries. The concept of import, export,
joint venture, and franchising was introduced due to shortfall in the domestic production and
creation (Pauwelyn, 2016). After WTO, it ensures that the commodity that is being imported
does not compete the local farmers and the local production and to increase the imports do
not pose any threat. WTO lays that small farmers can also start competing on the
international level in the liberalised market where there is a need to retain a level of
protection (Ever, Caseload, Pauwelyn, Broos, Trebilcock, Tax, Beyer, Kim, Sauve, and
Duran, 2018).
Before the establishment of WTO and its related rules and regulations. It is seen that there is
an assessment of imports that could represent unfair competition with the domestic producers
and leading to spoil the economy of the nation (Bown, and Mavroidis, 2017). The given
example shows the establishment of WTO polices has protected the interest of both local and

domestic producers. For instance- united republic retains average tariffs of nearly 20 percent
on the food imports and this was later changed after 1990s (Ever, Caseload, Pauwelyn, Broos,
Trebilcock, Tax, Beyer, Kim, Sauve, and Duran, 2018).
Conclusion
From the above discussion, it can be seen that there is an apparent relation established
between the developing nations and the trade policies. It is quite viable to say that domestic
policy of each country and their way of achieving developed economy differs from the
country with which it is going to deal in a transaction. The country may think that it can be
benefited from the lower food prices by importing the goods. One will need to assess the
imports that will actually present the unfair competition with the domestic level of
competition.

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