The Importance of the Wto

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Assess the importance of the WTO for international business and for the international business environment 1. Introduction As a rules-based body set up by governments, the World Trade Organization (WTO) has played a crucial role in improving global trading rules among participating nations since January 1, 1995. Over the last 15 years, the WTO has been processing to ensure that the operation of international business and its environment can flow smoothly. This essay is to assess the WTO’s importance for international business and the international business environment. Generally, the functions, benefits and the protections from the WTO and the significant impacts on participating in the WTO will be discussed to reflect the importance on different aspects relevant to international trade for not only multinational companies, but also governments and nations. Additionally, suppose without the WTO, the essay is to illustrate the importance of the WTO's existing. For international business environment, political, economical, technological changes and emerging markets would be considered in the assessment. 2. Discussion The benefits to international business from the WTO's functions Driven by its member states and coordinated by Secretariat, the WTO plays a dominant role in serving the world trade. The beneficial functions of the WTO are mainly to "act as a forum for multilateral trade negotiations; oversee national and regional trading policies; reduce non-tariff barriers to commerce; resolve trade disputes" (Hill, J, 2005, p.53). Most trading decisions and resolutions are made on the basis of general trade negotiations composed by several separated agreements on goods and services. Member countries can reach the agreements to gain their rights and priorities in international business after being renegotiated from time to time. For

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