BBB4M Unit 3 Assignment: International Trade Agreements

BBB4M Unit 3 Assignment: International Trade Agreements and Organizations The objective of this assignment is to learn about the purpose and importance of the numerous international trade agreements and organizations that contribute to the manner in which international business is conducted today. Individually, you will be required to conduct research on your chosen trade agreement or organization and create a research report, based on the information you have found

Research and write a comprehensive report on a specific international trade agreement or organization of your choice. The report should include an overview of the historical development of the agreement/organization, its objectives, arguments supporting and opposing it, your personal opinion based on research, and a concluding summary. Proper MLA in-text citations and a detailed Works Cited list are required. Use at least three reliable sources, excluding Wikipedia. The writing must be formal, clear, and concise, written in the third person, avoiding contractions.

Selected options for your research include agreements and organizations such as NAFTA, WTO, EU, IMF, ASEAN, among others. You are also required to submit a rough work research form by November 1 and the final report by November 3, 2017.

Paper For Above instruction

The following is a sample academic paper based on the requirements outlined above.

Introduction

The World Trade Organization (WTO) is an international organization that facilitates the regulation of international trade. Established in 1995, it evolved from the General Agreement on Tariffs and Trade (GATT), which was created post-World War II to promote free trade among nations. The WTO's historical development signifies a transition from bilateral trade agreements to a multilateral trading system aimed at reducing trade barriers and fostering economic growth globally. Its core objectives include ensuring smooth trade flow, promoting fair competition, and encouraging economic development among member countries.

Arguments Supporting the WTO

One significant argument in favor of the WTO is that it enhances trade liberalization among member countries. By establishing a set of agreed rules, it reduces tariffs and eliminates discriminatory practices, leading to increased international trade. For example, the negotiation rounds, such as the Doha Development Round, aim to lower trade barriers for developing nations, thus creating greater access to global markets (Baldwin, 2016). Increased trade has been linked to economic growth and poverty reduction, especially in emerging economies where market access can lead to industrial expansion.

Another supporting argument is the WTO's role in dispute resolution. The organization provides a neutral platform for resolving trade disagreements, which deters unilateral trade actions that could escalate into conflicts. An illustrative case is the dispute between the United States and the European Union over subsidies for aircraft manufacturers, resolved through WTO procedures, preventing potential trade wars (Feketekuty, 2014). This function promotes stability and predictability in international trade relations.

Arguments Against the WTO

Critics argue that the WTO's policies favor wealthier nations at the expense of developing countries. Wealthy countries often exert more influence in negotiations, leading to agreements that may undermine the economic development of poorer nations. For instance, the push for liberalization can result in the opening of domestic markets to foreign goods, potentially harming local industries in developing nations due to an influx of cheaper imports (Stiglitz, 2006).

Additionally, opponents contend that the WTO's emphasis on free trade neglects social, environmental, and labor concerns. The organization primarily focuses on economic growth, often at the cost of labor rights and environmental sustainability. For example, trade liberalization has been associated with a race to the bottom in labor standards and environmental protections in some sectors, raising ethical questions about the organization’s priorities (Clapp & Dauvergne, 2011).

Personal Opinion

Based on the research, it is evident that while the WTO plays a crucial role in promoting free trade and economic growth, it must balance these objectives with social and environmental considerations. Reforms should be implemented to give developing nations more voice and to incorporate sustainable development principles into trade agreements. Strengthening multilateral cooperation and ensuring that trade benefits are equitably distributed are essential steps toward making the WTO more inclusive and responsible.

Conclusion

The WTO has significantly shaped global trade by establishing a framework for reducing barriers and resolving disputes. Its support for liberalization and stability benefits many economies; however, criticisms regarding inequality and neglect of social issues highlight the need for ongoing reforms. Strengthening the organization’s capacity to address these concerns can improve its legitimacy and effectiveness in fostering sustainable and equitable global economic growth.

References

• Baldwin, R. (2016). The Great Convergence: Information Technology and the New Globalization. Harvard University Press.
• Clapp, J., & Dauvergne, P. (2011). Paths to a Green World: The Political Economy of the Environment. MIT Press.
• Feketekuty, G. (2014). The WTO Dispute Settlement Mechanism and Its Role in International Trade. Journal of International Commerce, Economics, and Policy, 5(2), 145-160.
• Stiglitz, J. E. (2006). Making Globalization Work. W. W. Norton & Company.
• World Trade Organization. (n.d.). History and Development. Retrieved from https://www.wto.org
• World Trade Organization. (n.d.). Functions and Objectives. Retrieved from https://www.wto.org
• Feketekuty, G. (2014). The WTO Dispute Settlement Mechanism and Its Role in International Trade. Journal of International Commerce, Economics, and Policy, 5(2), 145-160.
• Stiglitz, J. E. (2006). Making Globalization Work. W. W. Norton & Company.
• Baldwin, R. (2016). The Great Convergence: Information Technology and the New Globalization. Harvard University Press.
• Clapp, J., & Dauvergne, P. (2011). Paths to a Green World: The Political Economy of the Environment. MIT Press.