International Business: World Trade Organisation Report Analysis

This report provides a comprehensive analysis of the World Trade Organisation (WTO), an international organization that governs trade rules among countries. It begins with an executive summary and an introduction, followed by a literature review exploring the motivations behind the WTO's formation, its key functions, and the challenges it faces in achieving its goals. The report examines the WTO's role in trade negotiations, dispute resolution, and maintaining stability in the global market. It also assesses the suitability of the WTO and the challenges it faces, such as institutional complexities and environmental sustainability concerns. The report applies theory to practice by providing examples of how specific organizations and industries are affected by WTO policies, including the agriculture and tobacco sectors. The analysis and discussion sections delve into the motivations behind the WTO, its key functions, and the challenges it faces in promoting trade. The report concludes with a summary of the key findings and a list of references. Overall, the report highlights the significance of the WTO in facilitating international trade and its impact on various industries, emphasizing the importance of adapting to its policies for business success. The report covers key aspects such as the motivation behind the WTO, key functions of WTO, challenges, and the impact of WTO policies on different industries.

International Business

EXECUTIVE SUMMARY
World trade Organisation (WTO) is only international firm that deals with trade rules among
countries. As their heart are WTO agreements, negotiated as well as signed through bulk of
world’ trading countries and ratified into its parliaments. The intent is to aids manufactures of
products and services, exporters and importers perform its business. Additionally, The main
motive behind formation of WTO is maintaining stability and provides assurance to different
countries to make business deal more effectively. Apart from this, it helps in lowering down the
trade barrier which often increases the purpose of WTO. In addition to this, Environment
sustainability is key thing which affect the standards of WTO to many businesses. The policies,
related to surroundings are very complex which create issue for plenty firms. The common
exchange within the policies in addition to pointers made by the WTO affect the modern
performance as it take time and resources to implement new structure in limited time period.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Demonstrate an understanding of the motivations behind the formation of the World Trade
Organisation (WTO)....................................................................................................................1
Demonstrate an understanding of the key functions of WTO.....................................................3
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 DISCUSSION...................................................................................................5
Demonstrate an understanding of the motivation behind the WTO............................................5
Explain the key function of WTO...............................................................................................5
Assess the suitability of WTO and the challenges face by the organization in achieving the
principles to encourage trade between countries.........................................................................6
Apply the theory of the assessment of WTO using different examples......................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International business is considered as the trade of products, facilities, technology, funds and
understandings across national borders as well as at international or transactional scale.
Moreover, this incorporates cross border products transactions among two or more countries. In
addition to this, it encompasses whole commercial practices which considers for promoting
transfer of products, services, individuals, ideas as well as technologies all over national
boundaries. This enhances competition in domestic markets as well as introduces new
opportunities for worldwide market (Buckley and Casson, 2021). For this report, the undertaken
company WTO is known as World Trade Organisation. It is an intergovernmental firm which
govern and facilities global trade among countries. Its headquarters is in Geneva, Switzerland.
Also, its key functions is to assure that the flows of trade as smoothly, anticipation and freely as
possible The topics which are going to be discussed in this report are motivation behind World
Trade Organisation formation, key function of WTO and challenges faced and suitability of
WTO. Moreover, Application of theory to practice in the assessment of WTO effectiveness using
relevant examples of how specific organisations or industries are affected by WTO policies is
also described. Apart from this analysis and discussed related to this are also explained in this
report.
LITERATURE REVIEW
Demonstrate an understanding of the motivations behind the formation of the World Trade
Organisation (WTO).
As per the Reem Heakal (2021), World Trade Organisation (WTO) is considered as the
multilateral organisation having headquarters is in Geneva, Switzerland. Moreover, this came
into existences on 1sts January, 1995, as successor to General Agreement upon Tariffs as well as
Trade (GATT). In addition to this, respective firm functions as central body which provides
international trade. Additionally, they render a common platform for negotiating trade
agreements among member countries as well as to solve any trade conflicts. Also, they manage
about 60 as well as in around 300 regional trade agreements. The agreements of 60 trades are
accorded global law status. It comprises of about 164 members states. Furthermore, their key
goal is to assure that flows of trade as smoothly as well as predictably as possible. World Trade
Organisation (WTO) was developed among General Agreement on Tariffs and Trade (GATT), it
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was a part of Bretton Woods encouraged family, that incorporates international monetary fund
(IMF) as well as World Bank. Moreover, a trade negotiations series, GATT round initiates at the
end of World War II and were intent at minimising tariffs for international trade facilitation.
Therefore, the rationale for GTT was depends upon much favoured nation (MFN) clause that
when delegated to one nation through others, provides the chosen country which was privileged
rights of trading. As such, GATT intended to assists whole nation get MFN such status so not
any individuals country would hold trading benefits over other nation. Also, the World Trade
Organisation (WTO) replaced GATT as world’s international trading regulatory in year 1995 as
well s the present set of regulating rules stems from Uruguay round of GATT negotiations that
took place from year 1986 to 1994. In addition to it, GATT regulations of trading developed
among 1947 and 1994 which remain fundamental rule book for multilateral trades into products.
Additionally, the particular industry like agriculture has been addressed and problems for dealing
with anti dumping.
Regulating trade
The Uruguay round also laid foundations in order to regulates trades into services.
Moreover, the General Agreement upon trade in service (GATS) is the guidelines that direct
multilateral trades into services. In addition to this, intellectual property rights were addressed
into development of regulation that protects trade as well as investment of ideas, concepts,
patents, designs and many others (Nielsen, Eden and Verbeke, 2020). The key intent of World
trade Organisation (WTO) is to assure that international trade commences freely, smoothly as
well as predictably. Also, this forms as well as embodies rules of ground for international trade
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within member countries that offers system for global commerce. It objects to develop
economical peace as well as stability within would by multilateral system that depends upon
concerning states of members. Along with this, WTO has around 164 members which have
ratified their rules into its single countries also. It describes WTO becomes part of nation’s
domestic legal system. Additionally, rules therefore apply to local firms performing business
within worldwide arena. In case firm decide decided to invest into global nation through, such as
establishing office into those firm, WTO rules would regulates how that may be performed. In
theoretical way, in case particular country is member of WTO their local legislation cannot
contradict the rules as well as norms of WTO that recently regulated estimate 96.4% of whole
world trade (What Is the World Trade Organization?, 2021).
Demonstrate an understanding of the key functions of WTO.
According to Peterson (2020), World trade Organisation (WTO) is only international firm
that deals with trade rules among countries. As their heart are WTO agreements, negotiated as
well as signed through bulk of world’ trading countries and ratified into its parliaments. The
intent is to aids manufactures of products and services, exporters and importers perform its
business (Peterson, Arregle and Martin, 2020)
. Therefore, the functions of WTO are widely divided into some categorised which are
discussed below:
Trade negotiations: The World trade Organisation (WTO) provides negotiations of trade
within nations through facilitating a framework for structuring the agreements and rendering
conflicts resolution mechanisms (Functions of WTO, 2020). Additionally, this develops a global
legal framework which assures smooth exchange of products or services within member nations
(Cavusgil and et. al., 2020).
Assess the suitability of WTO and the challenges facing the organisation in achieving its
principle aim of encouraging trade between countries.
As per the Ferraro (2020), There are sure issues that are confronted by using the business
enterprise to comply with WTO principles are the institutional problem which might be greater
complex to apprehend the human beings. As extraordinary countries have their own rules and
law which desires to be maintained by using the company for longer time period. Apart from
this, it also essential that, it has loss of transparency in doing enterprise which influences the
enterprise at huge scale. Hence it's far important to keep the trade rules extra clean which assist
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in improving universal business respectively. There is special component like Digital trade it has
alternate the panorama of trading which much organisation fails to apprehend. Environment
sustainability is key thing which affect the standards of WTO to many businesses. The policies,
related to surroundings are very complex which create issue for plenty firms. The common
exchange within the policies in addition to pointers made by the WTO affect the modern
performance as it take time and resources to implement new structure in limited time period.
Hence, this makes predominant difficulty via tons business enterprise to comply with ideas for
positive time scale (Cherunilam, 2020). In addition to this, there are special regions which might
be left out by the WTO like fishery and agriculture which at once impact the company who're
associated with the unique industry.
Apply theory to practice in the assessment of WTO effectiveness using relevant examples of how
specific organisations or industries are affected by WTO policies
According to Cherunilam (2021), WTO develops number of right for running commercial
enterprise at global stage. The policies are progressed on the idea of business environment and
essential goal is to promote healthy and honest exchange. For example the agriculture enterprise
is at once stricken by the WTO decision and impact the overall commercial enterprise. If the
rules concerning certain fertilizers are made that it influences the whole industry. Apart from
this, it is vital for the organisation to comply with all of the regulations as in step with the WTO
tips which leaders to evolved monetary and make business profitable. Another instance, ITC
have direct effect on polices made with the aid of the world exchange business enterprise and
also ensure decision which are top for positive business (Sharma and et. al., 2020). WTO is
seizing the brand new tobacco business which reduces the dearth of business for many human
beings. Hence, it is crucial to make one of a kind element which is crucial to ensure business
successfully. The simplification and standardization is made to purchaser technique and the
elimination of description to boom the general presence of commercial enterprise (Cuypers and
et. al., 2020). Apart from this, regulations are made by having global alternate regulations which
bog down the effectiveness of business enterprise. Hence, the finding states that, it is essential
for WTO to take decision which benefit whole commercial enterprise efficiently.
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ANALYSIS AND DISCUSSION
Demonstrate an understanding of the motivation behind the WTO
From the finding it has been analysed that, World trade organization (WTO) is formed to
by the different countries for trade effective at international level. It us the part of organization
which is made up by 164 countries which deal regarding trades at make policies for development
and growth. Beside this, it helps in ensuring smooth functioning of trade and predictably as
possible. It replaces GATT as the world trading body in year 1995 for better performance of
trading at global level. The main motive behind formation of WTO is maintaining stability and
provides assurance to different countries to make business deal more effectively. Apart from this,
it helps in lowering down the trade barrier which often increases the purpose of WTO. The
reason is to settle down dispute and reduce all kind of risk which can affect the growth of the
country (Eden and et. al., 2020). It is operated as the multilevel trading system with large
majority and increase the overall performance at international level. Beside this, it facilitates its
citizen to have transparent framework at the single table.
Explain the key function of WTO
From the above research this has interpreted that, WTO have several key functions like,
maintaining Global trade with various countries. It is important for having a trade body which
help in reducing the monopoly in the market and also level the pricing at the international level.
Hence, this leads to peaceful and accountable economic for many nations and also assists in
developing sustainable future (Srivastava, Singh and Dhir, 2020). Apart from this, it is also used
for the trade negotiation which plays a major role in growth of any nation. This is followed by
the series of deals made by the government of particular nation help under GATT. It takes
several decisions on agriculture reforms and dealing with globalization effectively.
In the finding it is discussed that, WTO major role is to build trade capacity which help in
delivering a developed economy. All the agreement are made to have special provision like
contracting long term agreement which help in supporting the infrastructure and allow to make
better world (Ferraro, 2021). Hence, this improves the market and also helps in increasing the
trade at international level. Along with this, another function of WTO is to settle the trade
dispute which is help many countries to reach a certain point and make progress in future. The
important role which WTO plays is to review the national trade policy which help in providing
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overall better business model through improvisation. The main motive being forming world trade
organization is to make nation a developed economy. At last, it is essential for firm to increase
the presence and cooperate with the international organization which increases the market
effectively.
Assess the suitability of WTO and the challenges face by the organization in achieving the
principles to encourage trade between countries.
There are certain issues which are faced by the company to follow WTO principles are the
institutional issue which are more complicated to understand the people. As different countries
have their own rules and regulation which needs to be maintained by the organization for longer
time period. Apart from this, it also important that, it has lack of transparency in doing business
which affects the business at large scale (Ghauri, Strange and Cooke, 2021). Hence it is essential
to maintain the trade policies more clear which help in improving overall business respectively.
There is different aspect like Digital trade it has change the landscape of trading which much
organization fails to understand. Environment sustainability is key factor which affect the
principles of WTO to many companies. The policies, related to environment are very complex
which create issue for many firms. The frequent change in the rules as well as guidelines made
by the WTO affect the current performance as it take time and resources to implement new
structure in limited time period. Hence, this makes major issue by much organization to follow
principles for certain time scale. In addition to this, there are different areas which are neglected
by the WTO like fishery and agriculture which directly impact the organization who are
associated with the particular industry.
Apply the theory of the assessment of WTO using different examples
From the finding it has been figure out that, WTO develops number of right for operating
business at international level. The rules are improved on the basis of business environment and
main objective is to promote healthy and fair trade. For example the agriculture industry is
directly affected by the WTO decision and impact the overall business. If the policies regarding
certain fertilizers are made that it affects the entire industry. Apart from this, it is essential for the
organization to follow all the rules as per the WTO guidelines which leaders to developed
economic and make business profitable. Another example, ITC have direct impact on polices
made by the world trade organization and also make certain decision which are good for certain
business. WTO is seizing the new tobacco business which reduces the lack of business for many
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people. Hence, it is essential to make different aspect which is essential to make certain business
effectively. The simplification and standardization is made to customer procedure and the
removal of description to increase the overall presence of business (Luo, 2020). Apart from this,
policies are made by having international trade policies which hamper the effectiveness of
organization. Hence, the finding states that, it is essential for WTO to take decision which benefit
entire business effectively.
CONCLUSION
As per the above report, this has been concluded that international business plays essential
role within economical and firm growth as it encompasses whole commercial practices which
considers for promoting transfer of products, services, individuals, ideas as well as technologies
all over national boundaries. This enhances competition in domestic markets as well as
introduces new opportunities for worldwide market. In addition to this, from above discussion, it
has been summarised that the main motive behind formation of WTO is maintaining stability and
provides assurance to different countries to make business deal more effectively. Apart from this,
it helps in lowering down the trade barrier which often increases the purpose of WTO.
Additionally, the important role which WTO plays is to review the national trade policy which
help in providing overall better business model through improvisation. The main motive being
forming world trade organization is to make nation a developed economy. Along with this,
Environment sustainability is key factor which affect the principles of WTO to many companies.
The policies, related to environment are very complex which create issue for many firms. The
frequent change in the rules as well as guidelines made by the WTO affect the current
performance as it take time and resources to implement new structure in limited time period.
Apart from this, policies are made by having international trade policies which hamper the
effectiveness of organization. Hence, the finding states that, it is essential for WTO to take
decision which benefit entire business effectively.
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REFERENCES
Books and Journal
Buckley, P.J. and Casson, M., 2021. Thirty years of International Business Review and
international business research. International Business Review, p.101795.
Cavusgil, S.T. and et. al., 2020. Risk in international business and its mitigation. Journal of
World Business, 55(2), p.101078.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Cuypers, I.R., and et. al., 2020. Making connections: Social networks in international business.
Eden, L., and et. al., 2020. Research methods in international business. Palgrave Macmillan.
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, p.101794.
Luo, Y., 2020. Adaptive learning in international business. Journal of International Business
Studies, pp.1-21.
Nielsen, B.B., Eden, L. and Verbeke, A., 2020. Research methods in international business:
Challenges and advances. In Research methods in international business (pp. 3-41).
Palgrave Macmillan, Cham.
Peterson, M.F., Arregle, J.L. and Martin, X., 2020. Multilevel models in international business
research. In Research Methods in International Business (pp. 417-432). Palgrave
Macmillan, Cham.
Sharma, P., and et. al., 2020. Managing uncertainty during a global pandemic: An international
business perspective. Journal of business research, 116, pp.188-192.
Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: A
review and research agenda. International Business Review, p.101709.
Online
What Is the World Trade Organization?. 2021. [Online]. Available through:<
https://www.investopedia.com/investing/what-is-the-world-trade-organization/>.
Functions of WTO, 2020. [Online]. Available through:<
https://corporatefinanceinstitute.com/resources/knowledge/economics/world-trade-
organization-wto/>.
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