Social Sciences, asked by jayantkatri2714, 1 year ago

. explain the role played by wto in liberalising international trade.class10

Answers

Answered by shubham454
68
World Trade organization (WTO) has a crucial role to play in the international trade, global economics, political and legal issues arising in the international business because of the globalization.

WTO has emerged as a world’s most powerful institutions for reducing trade related barriers between the countries and opening new markets.World Trade Organization is the only International governing body that World Trade Organization replaces General Agreement on Tariffs and Trade (GATT) which was created in the year 1948.

The goal of WTO is to provide a fair platform for its member countries to help in services like exports,imports and conduct their business in a peaceful manner.

The advantage to the countries being members in the WTO is that that they lower trade related barriers among themselves. In contrary to this the countries which are not part of WTO must negotiate trade related agreements independently with their trading partners.

Almost all the industrial and agriculture sectors have been affected by trade barriers between the countries. USA considered being a free trade country because of less number of trade barriers for importing, but still it has got many.

Role of WTO in international business

WTO facilitates implementation, administration and smooth operations of trade agreements between the countries.It provides a forum for the trade negotiations between its member countries.Settlements of disputes between the member countries through the established rules and regulations.It cooperates with the IMF(International Monitory Fund) and World Bank in terms of making cohesiveness in making global economic policies.

Overall WTO was set up to play a very important role in the world economics though settling trade related disputes through rules, regulations and consensus based agreement mechanisms that would prevent trade related wars between powerful countries.

Through resolving trade related disputed WTO has got the potential to maintain world peace and bilateral relations between its member countries thorough following negotiations, consultations and mediations

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