Question

How WTO affects international trade

Answer 1

Meaning of WTO- World Trade Organisation...

As the name itself clear its meaning that its an organisation which is working globally for trade.it is created in 1995,it is an international organisation that oversees the trade rules among its member nations.it is based on the agreement signed by the trading nations.its main function is tohelp producers of goods abd services ie importers and exporters.it provides open lines of communication to its members.

Meaning of international trade.-

Trade means exchane of goods and services..when this takes place across international borders it called international trade.it supports the world economy,where prices,demand and supplyare affected by global events.

WTO affects international trade in the following ways-

1- Greater transparency- the agreement related to trade between member countries have greater transparency and predictability that benefit WTO and its non members.

2- increase trade- taking these effects tnto action or account the average membership has increased trade members by 171% and trade between its member countries by 88%.

3- solve disputes- it not only provides the benefit of trade or set of rules covering agriculture,oroperty rights and manufacturing of goods snd services it serves as a forum to solve disputes and negotiate new rules.

4- positive impact of membership-

It encourages trade without any didcrimination through reduction in trade cost by reducing tariff and non tariff barriers thus has positive impact on its member nations.

5- mutual benefit- it encourages mutual benefit and crestes a bond of togetherness and development of all the nations who are its members.it helps in attainment of rational use of workd resources.thus,mutual benefit is enjoyed by all.

To conclude,we can sun up that WTO has positive trade effects not only on its member nations but also on non members.