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Applied management project - Dissertation Example

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Managing Director on WTO Impact and Helping Enter New Markets Executive Summary Companies nowadays are not contented with the local demand their countries have to offer. Likewise, companies should not be complacent in their home turfs since there may be foreign firms that can enter their territories and offer higher quality products at much lower costs…
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Download file to see previous pages Companies can try to capture market share from foreign shores in order to be able to expand without the fear of being discriminated against foreign or local counterparts (Hoekman 2001). Still, there remains considerable criticisms because of the lapses of the organisation have negatively impacted some developing nations. However, the magnitude of the global marketplace makes it very difficult to manage. With the opportunities presented by the WTO, the companies can then turn their sights on these markets and the possible entrenched competition that they may face. Hence, there is the urgency to be able to penetrate swiftly as well as to guide the product in this very critical stage (Robertson 1993). Also, companies would do well to be able to be able to innovate in such a way that they can capture and hold market share. To do so, it is shown in the paper that it is important to always consider the market when innovating their products (Karr and Gabrielson 2007). Background, Aims and Objectives The global economy has greatly benefited from the increased trading activities that have been fuelled by trade liberalization. Hence, there are many companies that have tried to take on the challenges and be able to get into the different countries and capture the demand of their respective domestic markets. This strengthening of the global trading system has further expanded the global marketplace where companies can have access to different areas where they can sell their wares as well as be able to enhance their production capabilities. It is important to note that this has been supported greatly by the anti-discrimination principles of the Most Favored Nation (MFN) rule as well as the National Treatment rule which has enabled the different companies from different countries to be able to have fair treatment (Hoekman 2001). Still, there are criticisms of the global trade organisation. In fact, Rose (2003) even alleges that the WTO does not really contribute to the growing trade between nations. Furthermore, there have also been allegations that the organisation is merely a pawn used by rich and powerful countries and companies to advance their self-serving interests and be able to take advantage of the resources from other countries. Also, there have also been conflicts that have come between policies from different nations with those of the WTO. Among these have been the labour policies and the now increasingly pressing environmental policies. Through the past decade, there has been increasing awareness of the effects of global warming. Hence, different countries have been growing more concerned about the need to protect the environment and mitigate the impact of pollution in the environment. Therefore, there have been increasing regulations that different companies must abide in order to reduce their carbon footprints. However, there is the risk that these policies may be interpreted as protectionist in nature rather than as a protection for nature. On the other hand, there have also been rulings in favour of trade that has earned the ire of environmentalist groups that have alleged that the organisation was favouring capitalism over the need to protect the environment. It is important to remember though that trade must be able to promote sustainability while countries must likewise ensure that they abide by the various agreements from the trade rounds that has ...Download file to see next pagesRead More
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