Topic > World Trade Organization Analysis - 718

Trade can be explained as the exchange of goods and services between two different interested parties. The World Trade Organization is an international institution that uses its own set of rules to regulate trade or business activities between its member countries. It is also an institution that provides a platform where governors of member countries meet and express their views on how to improve trade within their countries and how to try to resolve trade difficulties between member countries. Although this type of trade, i.e. international trade, can be traced back to 1948, when the institution was known as the General Agreement on Tariffs and Trade (GATT), the World Trade Organization was founded in 1995 with a Wider range of objectives unlike (GATT). In other words, sellers will relate more friendly with buyers and vice versa as both parties benefit from each other, so the relationship is so mutual despite being from different countries. For example, before World War II countries did not trust each other and in doing so began to compete by building trade barriers with the aim of trying to protect locally produced goods. This in turn led to the Great Depression that triggered World War II. As a way to promote peace the countries involved created the (GATT). This institution helped countries gain trust in each other and expanded into what we now call World Trade. Organization (Alexander, K. (2008). The World Trade Organization and Trade in Services. Leiden: Martinus Unlike the Great Depression era where countries created trade barriers to promote their local products, it turned out more expensive than free This is because a country is able to negotiate with a member country on its imports, therefore making it cheaper to import and this in turn will lead to cheaper final products from cheap imported raw materials, reducing thus the cost of living. Promotes the increase. Thanks to free trade, countries are able to obtain a variety of products from imports at low cost. Since imports are cheap as raw materials, the final products will also be cheap this in turn makes it easier for the citizens of the country to afford it thus creating a surplus of income. Private companies are also able to afford the raw materials at a lower cost from the government and this in turn will make the final products more affordable. to its citizens, thus raising the standard of living through an increase in income.