Question

Robert has been asked by friends to join them at a protest rally against the World Trade Organization (WTO). Because he is taking International Business, he wants to use the facts he is learning to help make a decision. Three topics that especially concern Robert are poverty, human rights, and the environment. For each of these topies, prepare at least one argument for each side, that is, one pro and one con. In conclusion, give your own view of whether Robert should participate.

Answer 1

Let us discuss these topics one by one:

1) Poverty

PRO: World trade organization has facilitated free trade amongst a lot of developed and developing countries. The developing countries have been major exporters and utilized their fruits from trade in eliminating poverty at a large scale in those countries

CON: WTO has often been involved in treaties that have helped promote inequality and poverty in major parts of the world. They have sometimes forced smaller countries to open their markets to foreigners and without any experience in evaluating their comparative advantage, these countries have often suffered with low growth and high poverty

2) Human Rights

PRO: WTO has tried to ensure fair trade amongst countries and maximize social welfare. In a free trade world, everybody wins and economic benefits improve the bargaining power of the under-represented groups to fight for stronger human rights.

CON: The impact of trade has been rather different in practice from theory. Many small groups have been exploited by the bis multinationals and made to work in very harsh conditions with minimum wages. local governments are just pawns for the bis businesses who have the backing of their powerful governments.

3) Environment:

PRO : Free trade through WTO makes a variety of resources available to countries that may not avail them without trade. Thus it reduces the pressure on domestic natural resources.

CON: Trade has often resulted in the complete exploitation of resource-rich small countries at very cheap prices to the bigger countries. It further promotes a lifestyle of excess in the developed world while destroying the environment in the developing world.

Conclusion: Overall, although WTO was built on the right principles, the results ahve been far from satisfactory. Some show of dissen to take notivvce and improve its practices will help the organization to asses its impact and look at long term changes. Robert should participate.