Globalization and role of World Trade Organization

1. By
Amarnath(K04012)
Harigaran(K04037)
Anusha(K04013)
Elakkiya(K04032)

2.  Globalization refers to the development of an increasingly
integrated commercial system based on free markets in which
nations are open to foreign trade and investments.
Different perspectives –
 Economists – integration of economic systems
 Political scientists – diffusion of national political authority
through large trade blocs and the power of MNCs.
 Sociologist- erodes national culture.

3.  Technological advances have increased the speed and reduced
the cost of communications.
 Transportation cost and delivery schedules of goods reduced.
 Combined output of developing countries and world trade have
shown spectacular growth.
 Growth in amount of money floating around the world.
 Developed and developing countries both welcome free market
ideas.

4.  Comparatively uncontrollable vast pool of liquid cash
floating around the world.
 Proponents of trade barriers designed to shield
domestic producers from foreign competition
 The inequality of bargaining positions in trade disputes
between the developed and undeveloped countries

5.  Enabled countries to develop
 Alleviate poverty
 Improve social conditions
 Lengthen life spans
 Carry out social and political reform

6.  The flaws attract critics
 Widened the income gap between rich and poor
countries
 Developing countries had lost their sovereignty
 It may need a few changes to smooth out some rough
edges but it is the most powerful force today for social
good

7. • The world trade organisation is an
intergovenmental organisation which
regulates international trade.
• Established on jan 1995 in
Geneva,switzerland.
• The WTO has 163 members and 20 observer
governments.

8.  Liberia became the 163rd member on 14 July 2016, and
Afghanistan is set to become the 164th member on 29
July 2016.
 The WTO was essentially an extension of GATT(General
Agreements on Tarrif and Trade).
 GATT is only an agreement between contracting parties
and had no independent existence of its own while the
WTO is a corporate body recognized under international
law.

9.  One Country one vote system.
 All the Members have VETO Power.
 Most Favored Nation(MFN) and Tariff plan
 Non Discrimination between Domestic and Import Goods

10.  To Reduce Trade Barrier Between Nations.
 To settle the trade-related disputes.
 To provide forum for further negotiating further trade
Liberalization.(Doha Development Agenda (DDA).
 To see latest Disputes visit
(https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.
htm)

11.  At present 508 Dispute cases are recorded
 DS503 by India to US(Measures Concerning Non-Immigrant
Visas L-1 & H-1B)
 DS508 China — Export Duties on Certain Raw
Materials (Complainant: United States)

12. Queries Please???