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Global Institutions on the Way to Reformation In today world thr ar many issus in nd f rfr matin, n f which is international trad, this known as globalization. Although thr ar a grat dal f rul's, regulations, and prices ipod n international trad, th many in which ths rul's hav bn nord is a may cntrvrsy that sms t b scaling day by day. At th cntr f th cntrvrsy is th World Trad organization (WT). Th WT was stablish in 1995 in rdr t transfer th Gnral Agrmnt n Tariffs and Trad (GATT) int an norcal global commercial cd. Global trading has bn a part f th world sinc th 1940 s.
As trad btwn countries been t get s did th nd fr sm srt f international comic. In 1948, th International Trad organization (IT) was stablish, but fll through and trigger th creating f Gnral Agrmnt n Tariffs and Trad (GATT). GATT was card through several ngtiatins, known as rund's. Fr many yar's, Gatt's prices hld strong and for many countries the international support they needed to remain prosperous in global trade. Though, as time went on, certain trade policies established by GATT were being undermined by countries in order for them to continue conducting business. Gatt's rules and regulations were becoming obsolete in the rapid changing global economy.
By the early 1980 s the General Agreement was clearly no longer relevant to the realities of world trade as it had been in the 1940 s. For a start, world trade had become far more complex and important than 40 years before: the globalization of the world economy was underway, trade in services - not covered by GATT rules - was of major interest to more and more countries, and international investment had expanded (World Wide Web. web /about / facts 1. htm).
The eighth round (Uruguay Round 1986 - 1994) was the most recent and thorough of them all. The Uruguay Round had 125 countries participating; it is the largest trade negotiation to ever take place. Though this round was expected to fail from the start, it actually started some of the largest trade reforms since GATT and WWII. This round, lasting some 7 1 / 2 years, established the World Trade Organization (WTO) and a new set of agreements.
The World Trade Organization was enacted on January 1, 1995. The main function of the WTO is to ensure that trade flows as smoothly, predictably, and freely as possible. The main goals of WTO are to help trade flow as freely as possible, serve as a forum for trade negotiations, and deal with dispute settlements (Brecher, 1998). The WTO is also the international agency that oversees GATT.
The GATT was sign in 1947 and led to the decrease in trade restrictions. As of now, there are over 100 countries that participate in this agreement. Overseeing the GATT is just one of the many functions the WTO serves. The WTO is also determined in assuring the consumer and producers secure supplies, and more freedom in choosing the finished goods. The producers and exporters are given the assurance that their markers will remain open to them. As a result, the WTO ensures a more peaceful and accountable economic world.
The WTO along with GATT reduces trade barriers that in result break down barriers between peoples and nations. A unique aspect of the WTO is the fact that the decisions are made by a consensus or sometimes by way of a majority vote. There are many different levels and committees within the WTO with the Ministerial Conference being the top level decision making body (Nordquist, 1996). How the WTO remains so effective is by setting up universal guidelines for members to follow and enforcing them.
One of the most important changes made in WTO, is the addition of the trade rules regarding trade in intellectual property and services, as well as, products. Developing Countries comprise the majority of the membership of the World Trade Organization. On the other hand, the European Communities, the United States, and other industrialized countries enjoy the greatest shares of international trade (World Wide Web. web). The Dispute Settlement Body (DSB) is the law of the WTO. It is the body in the WTO that analyses the trade policies and interprets the rules regarding them.
Many changes are taking place for developing countries, and the way they are conducting their international business. For one, they are aborting many of their uses of tariffs on infant companies to try and support growth. Secondly, they are altering their management to make themselves more attractive to foreign investment, which in turn will increase foreign direct investment and help create more supportive trade balances. These developing nations are strongly advised to take part in the WTO, so they can reap the benefits it has to offer. The WTO, with its multilateral trade view, simply allows smaller economic powers to be more fairly involved in world trade without being victimized and taken advantage of by stronger economic powers in the old bilateral style of global trading (Kakazu, 1998).
Organizations like the WTO, EU, and NAFTA certainly have a positive influence on agricultural trade internationally. The United States has always traded internationally in the area of agriculture. U. S.
AG Trading has resulting in almost $ 50. 9 billion being exported and $ 38. 9 billion being imported. Some of the organizations listed above have been successful in ensuring economic and social progress as a result of agricultural trade. One positive influence on agricultural trade internationally has been the EU, which stands for The European Union. The EU is also known as the European Community, Common Market, European Economic Community, and the European Monetary Union. The EU is a direct result of cooperation and integration, which began in 1951 between six countries (Belgium, Germany, France, Italy, Luxembourg, and the Netherlands).
Today, the EU has 15 th member states. The objective of the EU is to organize relations between the member states of the EU, and between their peoples (Westlake, 1999). The EU is concerned with asserting the existence of the EU internationally through humanitarian aid to non-EU countries, promoting economic and social progress through promoting a single currency, and the introduce an area of freedom, security and justice. There are many advantages of the EU. First, they have set up trading blocks, limited tariffs, and created an easier way to travel that eliminates the need for passports. Europe has the European Community, and in the United States, we have NAFTA.
NAFTA stands for the North American Free Trade Agreement. The main function of NAFTA is the elimination of tariffs between Canada, United States, and Mexico. This encourages the cross border movement of goods and services. Also, it promotes the fair competition in the free trade area and ensures property rights in each partys territories. The NAFTA has been a positive agreement because it allowed Mexican markets to be built by increasing wages, and increased exports to Mexico and Canada.
In other words, it was a cheap and easy. Products could now be made at a more affordable rate, and could be traded at a lower margin. However, some companies moved to Mexico, but didnt stay because of several problems they faced. Replacement parts were hard to find, the financial system was not as good as it was in the U. S. , and the mode of transportation was not ideal. Some downfalls of these organizations that relate to trade is the fact that it seems to cater to the needs of the more industrialized countries.
Third world and developing countries seemed to have had greater difficulty in gaining market access. To cater to the needs of the developing countries, the WTO had extended the transitional periods curtailed in certain agreements as well as providing technical assistance. Also, measures have been taken to increase trading opportunities. Also, th WTO organize around 100 technical cooperation missions to developing countries annually. Various seminars and training course ar provide for countries that ar had toward markt condoms. Th creation of several organizations and agrmnt's btwn th US and various othr countries has truly had a positive impact on international trad.
Th limitation of trade restrictions have also had a somewhat negative impact by creating more competition between homeland farmers, and has led to some American companies to pull out of foreign lands such as Mexico. However, it seems that the benefits have outweighed the risks. For example, the WTO has allowed food to be produced at a lower cost to the consumer. Foods are produced cheaper since the imports used in production are also cheaper, which in turn lowers the cost of goods and services and the overall cost of living (George, 2000).
Trade also allows a division of labour within a country that creates jobs for people living within the country. Also, with international trade, it allows consumers to have products that we wouldnt normally have. Items such as Japanese motorcycles and out of season fruit and vegetables would not be a simple commodity that we enjoy without trade. Critics of th WTO say that instead of bing run democratically and in th interest of member countries, it has bcom th nforce of corporate manage trad.
A system whos this ar not in favor of th public interest, instead th focus has shift to larg corporations and making mony. Profit is th motivating factor being decisions mad by th WTO (Korten, 1995). By looking at international trad from th rational proactiv, th WTO has not only find to product consumers, work, and th nvironmnt, it has also acquired a number of opponents and prostores. Another prominent is concerning th WTO is organically product foods, which hav bcom a highly demand product in th last fw yar's.
Countries tak part in distributing and manufacturing foods because it has ld to an increase amount of trad (increasing xforms and minimizing imports). Th parti's that hav befits most from organically product foods ar farmers and agricultural business in othr countries. But a native impact would b increase competition among business. This reprints a rational point of view. Competitors ar only concerns with the own with and distinction. Th company and its wll-bing is the slf interest.
The primary goal is success. Business xp othr business, along with th customers, to show odin (Klein, 2000). Companies, individuals and countries alik all view th proactiv of th rational division. Th colony as a whol is rational.
Groups such as th World Trad Organization (WTO) ar using the hierarchy of power to bit thmslvs. Th WTO has nforce its own laws on th opening of trad barriers. Thy mad th decision that its legal t import been smattrpin mat (radically product mat) frm th USA. As state by Tm Whlr in Th World is Nt fr Sal, a Page f th WT ultimately did whats gd fr bth th countries and th consumers f ths product fds. This provide n ppr tunity t consult r any right t april. In the 21 st Century global trading will be more fine-tuned than it is right now.
We should see the elimination of tariffs, subsidies, quotas, etc. The world should be working like a large country, with open markets in every nation. Comparative advantage will establish itself, and trade balances will be less drastic. Under-developed and developing countries will become developed.
In my view, I think that in the 21 st Century, the world will operate as one large entity in the aspects of economic markets. Though, the creation of the WTO brought many great new ideas and helped closer unite the world into one huge market, there are still bugs that need to be worked out, and as time goes on, we will see need for more changes and adjustments. A few of the areas that the WTO needs to rectify and further develop now are areas such as workers rights, environmentalism, and foreign direct investment. As managers, we should distinguish the rational perspective from the emotional perspective and incorporate them both into a positive solution to the conflict. It is important for us to achieve a balance between the monetary and humanitarian interests in this issue.
Because rational views heavily outweigh emotional views wherever the WTO is involved, incorporating some compassion and surrender is the only way we can correct this unbalanced system. In re t minimize ur ppr tunity cst's, we must shift a bit away frm wealth and distinction and towards cperatin and happiness. We can d s by establishing, joining, and supporting grup's such as the Global Trade Watch, which is working hard t current the errr's being made by the WT and by the international trade industry in general. We must try t enforce different laws fr importing being smattrpin meat and reexamine international trade policies as a we. Bibliography: Brecher, Jeremy. Global Village or Global Pillage: Economic Reconstruction from the Bottom Up.
South End Press, 1998. George, Susan. Globalization and its discontents. New York: St. Martins Press, 2000. Kakazu, Hiroshi.
Growth Triangles in ASEAN: A New Approach to Regional Cooperation. 1998. Korten, David. When Corporations Rule the World. San Francisco: Barrett-Koehler, 1995. Klein, Naomi, No Space, No Choice, No Jobs, No Logo: Standing Up to the Brand Bullies NY: Picador USA, 2000. Nordquist, J. : NAFTA and GATT: environmental and economic issues.
Santa Cruz, Reference and Research Series. 1996. Rich, Bruce. Mortgaging the Earth: the World Bank, environmental impoverishment, and the crisis of development. Boston: Beacon Press, 1994.
Westlake, Martin. The Council of the European Union. Rev. ed. London: John Harper, 1999.
Whlr, Tom. Th World is Nt fr Sal. NY: Picador USA, 2001. World Trade Organization Web-Site. web Feb 17, 2004.
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Research essay sample on Foreign Direct Investment World Trade Organization
