International Business Enviroment - Essay Example

International Business Organization Inserts His/Her Inserts Grade Inserts August 6,2008 Contents Introduction2 History3 Evolution...4 Roles..5 Analysis- WTO and Asia.6 WTO and the World Bank .8 Works Cited.10 Introduction: This paper discusses one of the two world organizations- World Trade Organization. It starts off with a brief introduction about its history and evolution and then explains what roles the WTO plays overall. The paper then talks about its chosen policies and how they have affected the trade scenario etc of the entire world wherever they have been put to effect. This can be both negative and positive. In conclusion, the paper highlights the inter-relationships between International Monetary Fund and the World Trade Organization. It also talks about what relationship other organizations like The World Bank have in common with the WTO. This basically will form the conclusion part of this paper. Evolution: Before WTO was formed, there was another trade organization in working. This was called GATT or the General Agreement on Tariffs and Trade. This organization was also responsible to look after trade issues occurring throughout the world. However, it did not much relate itself to other things like environmental concerns, consumer protection etc which now WTO does. GATT made available rules and guidelines that were basic to the trade system and hence there were many agreements that took place because of the help of GATT. However, the evolution of GATT several times, made way to the birth of a new and improved "GATT version" of a trade organization called the World Trade Organization. GATT used to deal and address all issues related to the trade of goods only or tangible items. WTO, however as a trade organization looks after all sorts of trade commodities that include tangible items and services. Even intellectual property, like logos, inventions, creations, concepts, designs etc are things that WTO now handles which GATT never did. This evolution of a trade organization from GATT to WTO in 1995 was important and has helped the trade scenario by immense ratios. (Press Release- World Trade Organization Web site, 1997) History: The World Trade Organization started off in 1995. WTO is basically a set of principles which govern how trade is done throughout the world. Many countries settle their arguments and reach agreements through consensus through the forum that is provided by this organization. This basically helps in reducing and even eliminating completely any obstacles that come when countries are interacting to do trade with each other. Before WTO, there was GATT another free trade organization but this was more temporary than WTO. GATT was established during the Second World War and many tariff reductions etc are said to be the result of GATT. However, eventually due to a few shortcomings, GATT was replaced with WTO. (Pascal Lamy's Speech, 31 May 2007). The world trade organization is one of the newest organizations that function on an international level. (World Trade Organization Web site, 2005) Roles: There are many roles and duties this organization carries out for the benefit of the entire world's trade related issues and functioning. First and foremost, WTO is a trade organization and hence is responsible for reducing any trade barriers that can make countries do less trade with each other. Boost of trade hence can be said to be the biggest role of the World Trade Organization. It carries out The WTO functions as the principal international body concerned with joint discussions to reduce trade barriers and to make sure negotiations take place so that there is healthy competition throughout the world. Liberalization of trade and world trade in specific is its basic aim, so that there is economic development and prosperity through trade throughout. (FAS Web site, 2004). Other roles besides the facilitation of trade by WTO are also present and are prominent things as its duties. These include environmental concerns and protection f consumer rights even. The WTO makes ground-level rules for conduction of trade in the world. It helps producers sell their products and buyers buy them through the forum that this organization itself provides. The WTO runs on the basic philosophy that trade should take place smoothly without any obstacles and WTO erases any hindrances if they occur to make sure the former happens. There are many arguments that take place almost regularly between countries and trade parties. WTO helps solve these disagreements and settles disputes in between them. Often, a compromise is reached with government's legal binding rules that are set by WTO to facilitate trade and hence development. (World Trade Organization Web site, 2005) WTO Policies and Their Effects on Asia: Today Asia has a lot to offer to the world in terms of services, designs, IT, software development, agricultural precuts and what not. The aim of WTO as aforementioned is to make sure that everything takes place smoothly and a boost in trade takes place. WTO has brought a lot of globalization's positive effects on the whole of Asia specifically Southeast Asia. This has led to a greater interaction of it with the rest of the world. Also, this has led to increased positive growth in most of the countries situated in Asia. Because of the increased globalization effects specifically after the entrance and establishment of the internet, Asia has really opened up a lot of its routes to the entire world. This has made it prosper also, as this is what trade liberalisation basically means. There is a greater inclination towards the agricultural goods that Asia provides to the entire world through the policies that are set by WTO. Doha has even extended the time for the least developed countries like Africa etc. Minor adjustments are however, always underway to have continuous improvements instilled into the system of trade. Usually, what happens is that rich countries shield themselves from negative things by putting up problems for less developed countered or poor countries. This is also done through the reduction of agricultural subsidies to open new big markets. Henceforth, all agreements turn up usually in favor of these big countries with rich resources. WTO on the other hand focuses on poverty reduction; it strives for a better trade future in the world. Hence, it is flexible in forming its policies and in implementation it does not overlook poor countries like those situated in Asia example, Pakistan and Bangladesh. Due to these policies adopted by the World Trade Organization, a lot of employment opportunities are also created bringing the countries a lot of wealth from abroad also. Asia in specific has been of great benefit from the policies of WTO. WTO focuses on global economy and individual economy both. Even though it sets trade policies boasting liberalization, it doesn't not let Asian countries gets tuck in any turmoil's related to poverty. It formulates and has formulated such trade structures that are careful of negative effects on Asian countries in specific. These pro-poor trade dealings have led to direct reductions in poverty levels in Asia also just like any other poor country. (Fr. J. Felix Raj, SJ., December 7, 2004). WTO and the World Bank World Bank is also an organization that functions on an international level. Its main aim is however not to liberalize and boost trade opportunities, rather to reduce poverty in the whole world. There has been a great collaboration between WTO and the World Bank. These two have worked together to bring the world into peace through establishing such policies that do not harm those who are poor. The World Bank aims cover this gap between the rich countries and the poor ones by allocating resources of those rich countries to the poor nations so that the latter experience growth. This reduction in poverty levels and erasable all are roles that the WTO also is responsible for, as aforementioned. According to an old report, full liberalization of trade has been the motive of both by offering technical and financial help. However, this happens in between IMF and the World Bank and WTO claims this to be a political tool to have more stops taken towards a development agenda. Coming back to WTO and World Bank, their collaboration has been still quite commendable. Both have created such policies as to have positive effects on other counties that are not part them directly. Both the organizations aim to strengthen their collaboration and cooperation. Firstly and foremost, this collaboration aims to provide a forum collectively that so that all issues are solved with both their expertise jointly. Secondly, another aim is to improve communication and boost sharing of information with the help of sharing of each other databases even. Another joint aim is to make sure that both can also attend each others meetings to keep a check on the newest policies on poverty reduction etc. this is all there to make sure that development in the world takes place effectively and prosperity happens throughout. (Press Release- World Trade Organization Web site, 1997). Works Cited "WTO". Press Release. (1997). WTO and World Bank sign cooperation agreement. Retrieved August 5th, 2008, from World Trade Organization Web site: http://www.wto.org/english/news_e/pres97_e/pr72_e.htm "WTO". Press Release. (1997). What is the World Trade Organization. Retrieved August 5th, 2008, from World Trade Organization Web site: http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact1_e.htm Pascal Lamy's Speech. (31 May 2007). A brief history of the world trade organization. Retrieved August 5th, 2008, from voaNews Web site: http://www.voanews.com/specialenglish/archive/2007-05/2007-05-31-voa2.cfmCFID=21679432&CFTOKEN=97679177 "WTO". (2005). The multilateral trading system-past, present and future. Retrieved August 5th, 2008, from World Trade Organization Web site: http://www.wto.org/english/theWTO_e/whatis_e/inbrief_e/inbr01_e.htm "FAS". (2004). The World Trade Organization and Agriculture. Retrieved August 5th, 2008, from FAS Web site: http://www.fas.usda.gov/info/factsheets/wto.html Fr. J. Felix Raj, SJ. (December 7, 2004). WTO and Asia. 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