WTO AND ANTI-DUMPING Economic Foundations of International Trade in the Context of WTO
As an international body dealing with the global rules of trade between nations, World Trade Organisation (WTO) still finds relevance in shaping the economic performance of nations. Its main function is to ensure smooth and predictable trade flows, with a level playing field for all its members. The aim of WTO is to place the needs and interests of developing and transitioning economies at the core of its work programme.
Since 1995 when it incepted, there have been optimistic news of expanding WTO membership that emphasises that freer trade generates numerous benefits for consumers. In the newspapers report, there have been details of WTO entering negotiations for important countries like China, which portray the gains from trade. However, some groups seem unconvinced by and resentful of claims that free trade, as enshrined in the WTO mandate, makes the entire world better off. Large numbers of people from environmental and labor groups at various international meetings to protest globalization in general and the WTO in particular. All these can therefore lead into unveiling what constitutes WTO, examining why the organization exists, and the economic fundamental underpinnings of its accomplishments.
Currently, the WTO consists of more than 150 countries and …show more content…
In this context, WTO does not restrict the direct instrument like export tax. The effect of an export tax is to reduce the domestic price of the resource, since producers adjust supply until they are indifferent between exporting and selling in the domestic market. Given the global price, this transfers revenue from the resource producer to government, and to domestic users. It further creates the usual distortionary gaps as the marginal value of exports comes to exceed the price in the domestic
As an international body dealing with the global rules of trade between nations, World Trade Organisation (WTO) still finds relevance in shaping the economic performance of nations. Its main function is to ensure smooth and predictable trade flows, with a level playing field for all its members. The aim of WTO is to place the needs and interests of developing and transitioning economies at the core of its work programme.
Since 1995 when it incepted, there have been optimistic news of expanding WTO membership that emphasises that freer trade generates numerous benefits for consumers. In the newspapers report, there have been details of WTO entering negotiations for important countries like China, which portray the gains from trade. However, some groups seem unconvinced by and resentful of claims that free trade, as enshrined in the WTO mandate, makes the entire world better off. Large numbers of people from environmental and labor groups at various international meetings to protest globalization in general and the WTO in particular. All these can therefore lead into unveiling what constitutes WTO, examining why the organization exists, and the economic fundamental underpinnings of its accomplishments.
Currently, the WTO consists of more than 150 countries and …show more content…
In this context, WTO does not restrict the direct instrument like export tax. The effect of an export tax is to reduce the domestic price of the resource, since producers adjust supply until they are indifferent between exporting and selling in the domestic market. Given the global price, this transfers revenue from the resource producer to government, and to domestic users. It further creates the usual distortionary gaps as the marginal value of exports comes to exceed the price in the domestic