Globalization and role of WTO

By Amarnath(K04012)

Harigaran(K04037) Anusha(K04013)

Elakkiya(K04032)

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.

WHAT IS GLOBALISATION

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.

Major forces in expanding globalization

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

Flaws and problems in Globalization

Enabled countries to develop

Alleviate poverty

Improve social conditions

Lengthen life spans

Carry out social and political reform

Benefits of Globalization

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

Critics of Globalization

• 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.

World Trade Organization(WTO)

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.

History of WTO

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

How WTO Operates

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)

Role of WTO in Globalization

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)

Recent Disputes WTO handled

Queries Please???