International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply is globalization of the world and enables countries to obtain products and Essay on Trade. Article shared by: ADVERTISEMENTS: Trade refers to the interchange of goods and services. Trade may be confined within a region or between the regions of a particular nation or between different countries of the world. When trade is confined within a region, it is called the regional trade; when it is within the regions of a nation, it is called national trade and when it is confined between the Estimated Reading Time: 4 mins Essay On Trade Secrets. Words6 Pages. TRADE SECRETS A trade secret is the legal term for confidential business information. It can include any information that is valuable to its owner and that the latter wants to keep secret. Trade secret may include customer lists, recipes and formulas, special processes, devices, methods, techniques, business plans, research and development information, etc
Essay on World Trade Organization (WTO)
Read this essay to learn about World Trade Organization WTO. After reading this essay you will learn about: 1. Introduction to World Trade Organization for International Business 2. Reasons to Join WTO for International Business 3. Functions 4. Decision Making 5. Essay on trade Structure 6. Principles of the Multilateral Trading System 7. The Deadlock 8.
Ministerial Conferences and Other Details. The World Trade Organization WTO is the only international organization that deals with global rules of trade between nations, essay on trade.
It provides a framework for conduct of international trade in goods and services. It lays down the rights and obligations of governments in the set of multilateral agreements.
In addition to goods and services, it also covers a wide range of issues related to international trade, such as protection of intellectual property rights and dispute settlement, and prescribes disciplines for governments in formulation of rules, procedures, and practices in these areas.
Moreover, it also imposes discipline at the firm level in certain areas, such as export pricing at unusually low prices. The basic objective of the rule-based system of international trade under the WTO is to ensure that international markets remain open and their access is not disrupted by the sudden and arbitrary imposition of import restrictions. Under the Uruguay Round, the national governments of all the member countries have negotiated improved access to the markets of the member countries so as to enable business enterprises to convert trade concessions into new business opportunities.
The emerging legal systems not only confer benefits on manufacturing industries and business enterprises but also create rights in their favour. The WTO also covers areas of interest to international business firms, such as customs valuation, essay on trade, pre-shipment inspection services, and import licensing procedures, wherein the emphasis has been laid on transparency of the procedures so as to restrain their use as non-tariff barriers.
The agreements also stipulate rights of exporters and domestic procedures to initiate actions against dumping of foreign goods. An international business manager needs to develop a thorough understanding of the new opportunities and challenges of the multilateral trading system under the WTO. The WTO came into existence on 1 January as a successor to the General Agreements on Tariffs and Trade GATT. Its genesis goes essay on trade to the post-Second- World-War period in the late s when economies of most European countries and the US were greatly disrupted following the war and the great depression of the s.
Consequently a United Nations Conference on Trade and Employment was convened at Havana in November It led to an international agreement called Havana Charter to create an International Trade Organization ITOa specialized agency of the United Nations to handle the trade side of international economic cooperation.
The draft ITO charter was ambitious and extended beyond world trade discipline to rules on employment, commodity agreements, restrictive business practices, international investment, and services.
However, the attempt to create the ITO was aborted as the US did not ratify it and other countries found it difficult to make it operational without US support.
The combined package of trade rules and tariff concessions negotiated and agreed by 23 countries out of 50 participating countries became known as General Essay on trade on Tariffs and Trade GATT : an effort to salvage from the aborted attempt to create the ITO.
India was also a founder member of GATT, a multilateral treaty aimed at trade liberalization. GATT provided a multilateral forum during to discuss the trade problems and reduction of trade barriers. World Trade Organization membership increased from 23 countries in to countries by GATT remained a provisional agreement and organization throughout these 47 years and facilitated considerably, essay on trade reduction. During its existence from toaverage tariffs on manufactured goods in developed countries declined essay on trade about 40 per cent to a mere 4 per cent.
It was only during the Kennedy round of negotiations inthat an anti-dumping agreement and a section of development under the GATT were introduced. The first major attempt to tackle non-tariff barriers was made during the Tokyo round. The eighth round of negotiations known as the Uruguay Round of was the most comprehensive of all and led to the creation of the WTO with a new set up of agreements, essay on trade.
Despite the disciplinary framework for conduct of international trade under the WTO, countries across the world including the developing countries were in a rush to join the pack. The WTO has nearly members, accounting for over 97 per cent of world trade. Presently, 34 governments hold observer status, essay on trade, out of which 31 are actively seeking accession, including large trading nations, such as Essay on trade and Taiwan.
Since each country needs to export its goods and services to receive foreign exchange for essential imports, such as capital goods, technology, fuel, essay on trade, and sometimes even food, it requires access to foreign markets.
But countries require permission for making their goods and services enter foreign countries. Thus countries need to have bilateral agreements with each other. By joining a multilateral framework like the WTO, the need to have individual bilateral agreements is obviated as the member countries are allowed to export and import goods and services among themselves. An individual country is unlikely to get a better deal in bilateral agreements than what it gets in a multilateral framework, essay on trade.
It has been observed that developing countries had to commit to a greater degree to developed countries in bilateral agreements than what is required under the WTO. A country can learn from the experiences of other countries, being part of the community of countries and influence the decision-making process in the WTO. The WTO provides some protection against subjective actions of other countries by way of its dispute settlement system essay on trade works as an in-built mechanism for enforcement of rights and obligations of member countries.
It would be odd to remain out of WTO framework for conducting international trade that has been in existence for about six decades and accounts for over 97 per cent of world trade. It may even be viewed as suspicious by others. The major function of the WTO is to ensure the flow of international trade as smoothly, predictably, and freely as possible. This is a multilateral trade organization aimed at evolving a liberalized trade regime under a rule-based system.
To provide a forum for further negotiations among member countries on matters covered by the agreements as well as on new issues falling within its mandate. To assist developing countries in trade policy issues, through technical assistance and training programmes.
WTO is a member-driven consensus-based organization. All major decisions in the WTO are made by its members as a whole, either by ministers who meet at least once every two years or by their ambassadors who meet regularly in Geneva.
In essay on trade of the complexities involved in multilateral negotiations among member countries with diverse resource capabilities, areas of special interest, and geo-political powers, decision-making through consensus is highly challenging.
Developed countries with much greater economic and political strengths often employ pressure tactics over developing and least developed countries in building up a consensus.
This has led to considerable networking among the member countries and evolving of several country groups as shown in Exhibit 5. The rules are enforced by the members themselves under agreed procedures that they negotiated, including the possibility of trade sanctions. The sanctions too are imposed by member countries, and authorized by the membership as a whole.
The organizational structure of WTO as summarized in Fig. The Ministerial Conference is the topmost decision-making body of the WTO, which has to meet at least once every two years. Day-to-day work in between the Ministerial Conferences is handled by the following three bodies:.
In fact, all these three bodies consist of all WTO members and report to the Ministerial Conference, although they meet under different terms of reference. There are three more councils, each handling a different broad area of trade, reporting to the General Council.
Each of these councils essay on trade of all WTO members and is responsible for the working of the WTO agreements dealing with their respective areas of trade. These three also have subsidiary bodies. Six other bodies, called committees, essay on trade, also report to the General Council, essay on trade, since their scope is smaller.
They cover issues, such as trade and development, the environment, regional trading arrangements, essay on trade, and administrative issues. The Singapore Ministerial Conference in December decided to create new working groups to look at investment and competition policy, transparency in government procurement, and trade facilitation. It has 11 committees dealing with specific subjects, such as agriculture, essay on trade, market access, subsidies, anti-dumping measures, etc.
The subsidiary bodies of the Services Council deal with financial services, domestic services, GATS rules, and specific commitments. It has two subsidiaries, i. Formally all of these councils and committees consist of the full membership of the WTO.
But that does not mean they are the same, or that the distinctions are purely bureaucratic. In practice, essay on trade people participating in the various councils and committees are different because different levels of seniority and different areas of expertise are needed, essay on trade. Heads of missions in Geneva usually ambassadors normally represent their countries at the General Council level. Some of the committees can be highly specialized and sometimes governments send expert officials from their countries to participate in these meetings.
Even at the level of the Goods, Services, and TRIPS councils, many delegations assign different officials to cover different meetings. All WTO members may participate in all councils, etc. The WTO has a permanent Secretariat based in Geneva, with a staff of around and is headed by the Director-General.
It does not have branch offices outside Geneva. Since decisions are taken by the members themselves, the Secretariat does not have the decision-making role those other international bureaucracies are given. The Secretariat also provides some forms of legal assistance in the dispute settlement process and advises governments wishing to become members of the WTO.
For an international business manager, it is difficult to go through the whole of the WTO agreements which are lengthy and complex being legal texts covering a wide range of activities. The agreements deal with a wide range of subjects related to international trade, such as agriculture, essay on trade, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, and intellectual property.
However, a manager dealing in international markets needs to have an understanding of the basic principles of WTO which form the foundation of the multilateral trading system. Under the WTO principles, a country cannot discriminate between its trading partners and products and services of its own and foreign origin.
Under WTO agreements, countries cannot normally discriminate between their trading partners. In case a country grants someone a special favour such as a essay on trade rate of customs for one of their productsthen it has to do the same for all other WTO members. The principle is known as Essay on trade nation MFN treatment. This clause is so important that it is the first article of the General Agreement on Tariffs and Trade GATTessay on trade, which governs trade in goods.
MFN is also a priority in the General Agreement on Trade in Services GATS, essay on trade, Article 2 and the Agreement on Trade-Related Aspects of Intellectual Property Rights TRIPS, Article 4although in each agreement, essay on trade, the principle is handled slightly differently. Countries can set up a free trade agreement that applies only to goods traded within the group—discriminating against goods from outside.
A country can raise barriers against products that are considered to be traded unfairly from specific countries. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners—whether rich or poor, essay on trade, weak or strong.
The WTO agreements stipulate that imported and locally- produced goods should be treated equally—at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.
World Civ A Unit 3 Live Class Trade Essay
, time: 11:18International Trade Essays: Examples, Topics, Titles, & Outlines
International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply is globalization of the world and enables countries to obtain products and Essay on Trade. Article shared by: ADVERTISEMENTS: Trade refers to the interchange of goods and services. Trade may be confined within a region or between the regions of a particular nation or between different countries of the world. When trade is confined within a region, it is called the regional trade; when it is within the regions of a nation, it is called national trade and when it is confined between the Estimated Reading Time: 4 mins Essay On Trade Secrets. Words6 Pages. TRADE SECRETS A trade secret is the legal term for confidential business information. It can include any information that is valuable to its owner and that the latter wants to keep secret. Trade secret may include customer lists, recipes and formulas, special processes, devices, methods, techniques, business plans, research and development information, etc
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