Commentary (Economics HL) Essay Example | Topics and Well Written Essays - 750 words - 1

Commentary (Economics HL) - Essay Example It’s a forum for governments to negotiate trade agreements. It’s a place for them to settle trade disputes. It operates a system of trade rules. (But it’s not Superman, just in case anyone thought it could solve — or cause — all the world’s problems!)† (What is WTO, 29 September 2008) Some of the most significant functions of the WTO are underlined in the above quote; WTO is an ideal platform for the governments of different countries to negotiate the terms and conditions at which they want the trade to take place. No other organization provides any government with this wonderful opportunity to venture into global trade and to get a taste of the same. Global trade contributes immensely to the economy of any country which is actively involved in it. For instance, Pakistan produces the maximum no of footballs when compared to any other country in the world; the footballs are exported to different countries and the whole process of exporti ng becomes global trade, the profit generated from the production of footballs helps the economy of Pakistan to grow. WTO has 153 members as of now and Pakistan is also one of the 153 members, so this is how WTO helps in the growth of a countries’ economy. The first step in the process of negotiation is talks; the WTO organizes Talks between the representatives of various countries. Negotiation is a very important part of the WTO, the organization firmly believes in negotiating terms and conditions and the same has an influence on the member countries of the WTO. This policy of outing negotiation the first step in the agenda has helped the WTO grow with leaps and bounds. â€Å"Where countries have faced trade barriers and wanted them lowered, the negotiations have helped to liberalize trade. But the WTO is not just about liberalizing trade, and in some circumstances its rules support maintaining trade barriers — for example to protect consumers or prevent the spread of