Role Of Globalization In The World Trade Organization

Improved Essays
There are tons of international institutions that play a part in economic globalization. The increase in globalization throughout the world in the last couple of decades is due to many things. I’ll start off by talking about the International Monetary Fund (IMF) and its important ties to globalization. Then I’ll go on to talk about the World Trade Organization (WTO) its importance and the role it plays in globalization with globalization. Lastly, I’ll talk about the World Bank (WB) its importance and its ties to globalization.
The International Monetary Fund is an international organization that has been around for about seven decades, the IMF has 188 countries functioning to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The IMF played a role in globalization by
…show more content…
The purposes of the World Trade Organization is to lower trade barriers and encourage countries to trade with each other, encourage fair competitions between countries and endorse trade liberalization to speed up economic growth and economic globalization. Considering most countries have free trade the world trade organization is very important. There are 161 states in the organization. I believe that WTO plays the biggest role in globalization. The reason I say this is because globalization itself is interactions and integration among the people, companies and governments of different nations a process driven by international trade and investment. Globalization is all about of trade and the WTO encourages it. The World Trade Organization is the most important watchdog of trade at an international level it also sets the terms within which regional agreements can be signed. In this way, globalization is managed at world level from a trade

Related Documents

  • Improved Essays

    This is the most important effect of globalization on trade. As businesses can sell their products in different parts of the world, it increases the profit of the company. Global trade brings local companies greater incomes than the narrow domestic market (Lazar & Priyadarsanan, 2015). Before globalization, there was trade barriers between nations and firms were not allowed to sell or import goods to another nation. Now globalization has advanced the relationship between the countries and removed the barriers.…

    • 990 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    What are some of the policies used in globalization that most countries have adopted? Mexico, Canada and the United States have adopted the North American Free Trade Agreement (NAFTA). This policy has led to a swift increase in the movement of money, goods, and the migration of people throughout these countries. Another policy is the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO). These two policies are somehow related because they focus on helping countries build businesses and develop trade in order to make the business known worldwide.…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Trade Policy: Power and International Institutions In recent years the study of international relations has experienced a shift in the way that interaction at the systemic level is analyzed. This can be partially attributed to the rise in globalization, which has since led to the creation of numerous types of non-state actors and fundamental changes in the way scholars conceptualize the state. This can be tied to the liberalization of trade policies that have encouraged the development of multinational/transnational corporations that exist outside what is viewed as the traditional state. These states and non-state actors alike interact economically at the global level, which can be an issue due to the anarchic nature of the system. It is from this chaotic system that the need of international institutions has risen from.…

    • 1178 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    The major change is observed in the trade policies of developing nations since 1980s, period due to rapid industrialization and increased in multinational corporations’ expansion to developing counties (Croome 1998; Sharma 2002)). Hence, the need of international platform to resolve the trade issues and challenges among diverse nations was resolved in the form of World Trade Organization (WTO), headquartered in Geneva (WTO 2016). Apart from the role played by WTO in mobilizing and harmonizing international trade activities, disputes on policies of WTO always raised in international media. The main argument raised by the correspondents of developing counties is related to the benefits received by developed countries as a result of international trade agreement of…

    • 1498 Words
    • 6 Pages
    Great Essays
  • Great Essays

    U.S. support for, pressure on, and criticisms of the Bank have been central to its growth and the evolution of its policies, programs, and practices” (IATP). Furthermore, the US has immense influence over other financial institutions such as the International Monetary Fund. Related to trade, the US was one of the notable countries in developing the World Trade Organization which facilitates trade with 164 other states (WTO). Being one of the more prominent states within the organization, the US is able to have a huge influence on the world by reducing trade barriers and opening new markets. In order to be a worldwide power, trade is a critical aspect for countries to control.…

    • 1637 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Transnational Retailer

    • 1010 Words
    • 4 Pages

    The term transnational retailer is generally understood to mean all the activities involved in selling products and services to final international consumers for their personal consumption (Dicken, 2011). At the present time, the massive global economic growth and the change of the competitive market environment drive the retail foreign direct investment become one of the most important parts of the international economic activity in the world. This essay attempts to discuss the GDP and economic dynamic result financial crisis, also the government political such as capitalism, regulation and gendered economy phenomenal in society. Then explain how those factors determine the expansion and performance of the multinational retailers being success…

    • 1010 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Since the Second World War (Smallman, S., & Brown, K. (2011). ), and in recent years, governments have adopted free trade economic systems, thus increasing their productive potential and creating new opportunities for people, trade and investments. As explained by Ngaire Woods (1998) “Governments have negotiated dramatic reductions in barriers to commerce and established international agreements to promote trade in goods, services, and investment.” Globalization targets the way in which transactions in economy are increasing and the way in which production and…

    • 732 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Companies that carry out the multinational strategy are inclined to adopt the decentralized federation organizational system. Many experts have research on the effects of the MNCs and got some conclusions. Firstly, for the effects on the world economy, MNCs enhance the integration of the world economy and international markets deeply; and also promote and control the development of international trade, and make the contemporary international investment and international trade are related to each other; what is more, MNCs promote international capital flows, optimize the allocation of resources and accelerate globalization of production which help to reduce the competitive…

    • 1134 Words
    • 5 Pages
    Decent Essays
  • Improved Essays

    It promotes connectivity, free trade, cultural diversity, mobility and changes in ITC. Globalization is the process of international integration, generating further interdependence of economic and cultural activities. Globalization in its basic economic sense refers to the adoption of open and unrestricted trading markets (through lowering of trade barriers, removal of capital controls, and liberalization of foreign exchange restrictions). Huge money movement, increased volumes of trade and changes in ITC are all integral to a global…

    • 1073 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    This is because international trade has more benefits for individuals, countries as well as for the world. The countries with strong international trade take power to control world economy as a developed countries such as USA, Britain, china, Japan and Germen etc. the more important thing is that the international trade can eradicate poverty. Due to free trade many countries have opportunities to trade without seeing any geographical boundaries. This trading pattern improve the FDI in the country by increasing investments.…

    • 2265 Words
    • 10 Pages
    Improved Essays