World Trade Organization: A Global Organization Of The World Trade Organization

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World trade organization is a global organization that deals international trade. It set rules and policy that govern how trade should be transacted on the international market (McMichael, 17). It is involved in the negotiations of the agreements that cut across different nations. The core functions of this body is to make sure the producer get and ample market beyond borders to sell his/her good and services and the buyer(customers) access the international market without many barriers. The body also makes sure the service firms which deals exports and import conduct their duty in a professional manner so that there is no delay or the rules that have been set are not violated.
The WTO was formed on first January, 1995 to deal with liberalize global market. This organization replaced an old organization which formed immediately after the World War II to address the economic challenges which the world was facing that time after the war. These challenges are; unemployment, unfair trade, investment challenges and disputes among different nations. This organization was called international trade organization. It was formed alongside other global development agencies i.e. international monetary fund and the World Bank. These two i.e. World Bank and IMF focused on development agenda and ITO on trade. However, ITO did not get the approval of few nations so that to become a global organization under the United Nations that was purely to dealing with trade (McMichael ,22). Due to lack of global appeal and approval, the ITO went under, and General Agreement on Tariffs and Trade (GATT) replaced it. This is because the GATT seems to be an easy way to get global appeal and it could deal with the current events without manipulation from any or...

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However, on the other hand, as much as the world trade organization has been committed and determined to form the CNS of trade and commerce for its member countries through policies, it has been exceedingly hard as national interests and policies override the organizations’. This has subsequently hampered the organization’s pursuit to equal development between member states. The concept of FDI has not been fully harnessed due to the complexity found within the concept. It has been felt that host countries have been the key beneficiaries of FDI at the expense of the investor’s country. Profits are ploughed back within the host country’s economy as investors pay licensing fees and other charges to the authorities of the host country with little to plough back to their mother countries. This has hugely compromised the concept of FDI (Helpman, 54).

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