International Business Environment

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Date Submitted: 03/28/2009 05:40 AM

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Assignment MBA - International Business Environment SIMM04

Q 1) Assess which issues, in your view, are causing friction among members of the World Trade Organization (WTO), and evaluate how they are likely to be resolved.

In recent times, the rapid growth of worldwide business has transformed the whole concept of international trade. The expansion of world trade or business has been made possible by countries, institutions and organization who are promoting globalization to its maximum strength. Now one fifth of world’s products are traded internationally and this has changed the scenario of the whole international business environment.

The world economy is now facing fierce competition, challenges met from increased demands of consumers, advancement in science and technology where businesses have to search for competitive advantage and new resources. In this fast -paced international trade, existence of regulations, control, tariffs and quotas are very important for regulating and operating the economies all around the world.

The World Trade Organization (WTO), historically called GATT has been playing vital role in promoting international trade among nations. WTO was created in 1994 as the successor organization to the General Agreement on Tariffs and Trade (GATT) and represents 146 countries in an effort to globalize commerce (WTO, 2007). World Trade Organization has become an organization for liberalizing trade and a platform for countries to negotiate trade agreements.

The WTO creates the rules that govern the international trading. The rules includes that requires the members to change their industrial and agricultural policies, intellectual property legislation and basic service provisions and their constitutions. These rules affect the people’s employment, income and the prices that people pay for imports and the goods produced locally that compete with the imports. With the establishment of WTO these rules has been extended to number of...