International Business Enviroment Essay Example | Topics and Well Written Essays - 1000 words

International Business Enviroment - Essay Example 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.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 e nvironmental 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