What is the World Trade Organisation (WTO)? The WTO is an international organization dealing with globalization and rules on trade between nations. Its main economic function is to ensure that trade flows as smoothly, predictably and freely as possible. What does economic globalization mean, in the first case? Globalization refers to the increasing integration and interdependence of the world’s economies arising from not only increasing trade but also from greater mobility of factors of economic production like capital, labour and enterprise. The WTO is an international organization that aims to facilitate global trade and to promote investment liberalization. One view is that without the aid of the WTO, international trade will be more distant and unlikely. Although there are other economic causes of globalization, the WTO plays a very important role to promote globalization. This economics paper discusses the WTO and how it has impacted the spread and extent of globalization.
Although WTO aims to promote international free trade, which according to standard economic theory is mutually beneficial for the countries involved in international trade, studies on how successful the WTO has actually been in achieving these benefits for its member countries have shown mixed results. According to research, studies by the General Agreement on Tariffs and Trade (GATT, the forerunner and predecessor of WTO) and Organisation of Economic Cooperation and Development (OECD) both estimate a gain to the international world economy from the WTO as more than $200 billion annually once its agreements are fully in force and would raise global real incomes by about 1%. Some international trade economists even argue that these estimates are much too low, as they do not account for the dynamic effects of the agreements.
Another major development in international transportation is the development of container shipping, which has greatly increased the efficiency in which goods and raw materials can be transported. Compared to non-container shipping, where goods have to be individually loaded and unloaded from a ship’s cargo holding area, containers (with the goods already stored in them) can easily stacked and moved from ship to ship or from a ship to container trucks using large container cranes. Containers can also be individually refrigerated, which significantly increase the ease in which perishable products can be shipped.
JC Economics Essays - 'H2, H3 standards for an economics essay' - tutor's comments: Clear, interesting, and well-written, this economics paper will achieve a very high grade for the range of ideas, arguments, and examples presented on the institution of the WTO. Logical, reasonable, and well targeted to answering the requirements of the economics question, and with very solid, good background knowledge of the WTO and relevant and economic theories. Empirical economic data is present, to a relevant and large extent, to buttress arguments, advance and develop the paragraphs presented, and thus overall this is an excellent Economics paper.