Globalisation And Its Impacts Essay

Globalisation is the process of increased economic integration between nations leading to the development of a single or global world market. International organizations (institutions that have been created to combat problems of globalisation) such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) are examples of the many organizations that have helped promote globalisation around the world. As well as this, trading blocs (when a number of countries join together in a formal preferential trading arrangement to the exclusion of other countries) such as the European Union (EU) and Asia Pacific Economic Co-Operation (APEC) and trade agreements (economic treaty or other enforceable compact committing two or more nations to specific terms of trade and commerce) such as the North American Free Trade Agreement (NAFTA) and the Australian New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) have also been heavily influential in the promotion of globalisation on a more regional level.

One of the most pertinent of these examples is the World Trade Organization (WTO). Established in 1995 from the General Agreement on Tariffs and Trade (GATT) established in 1947, the WTO is a multilateral trade agreement. It is the first international organization with the powers to enforce trade agreements across the world. In 2008, the WTO had 153 members. The main aim of the WTO is to increase economic growth trough trade. In order to do this, the WTO has not only reduced tariffs, quotas and other trade barriers in manufactured goods, services, imports and exports, but it also monitors the development in world trade. The WTO operates to increase the ability of business to export and import without trade restrictions, by dealing with trade agreement problems as discussed in the quote in the stimulus, as well as creating and enforcing free trade agreements (a formal agreement between countries designed to break down protection so there are no...