Question

The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO? Evaluate the specific functions of the WTO and relate these to the question at hand.

Answer 1

Even though US is the most open international market, this will allow other countries to gain access to US markets but inorder to US to gain market of other countries it needs markets of other economies to get open. Therefore by joining WTO, US exporters has benefitted immensely by gaing access to markets of other nations.

Functions performaed by WTO are-

1. Administers WTO trade agreements - WTO ensures that trade agreements for free trade should be set up between nations and no nation will come in violation of those agreements. Therefore it builds trust between both nations while trading. This function have helped US to safeguard interest of its exporters.

2. Handling trade disputes- Trade disputes between nations are resolved here, this platform has given US assurance to US exporters that they have a international body protecting their interest of free trade.

3. Technical assistance for developing economies. Developed nations have gained access to developing nations through WTO's intervention in nation's policies. WTO negotiations and technical assistance to developing countries to promote free trade has resulted in more markets for developed nations.

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