Week 3 Quiz Bus 378 International Business Law Instructor Ch

Week 3 Quiz Bus 378 International Business Law Instructor Cheryl To

Week 3 Quiz, BUS 378 International Business Law, Instructor: Cheryl Toops 1. WTO member states are allowed to take measures contrary to the General Agreement on Tariffs and Trade (GATT 1994) if the measures are: (Points : 1) essential to acquiring products in short supply. essential to controlling price increases caused by domestic labor disputes. essential to liquidating temporary surpluses of stocks that are the result of domestic hoarding. All of the above. 2. Most countries do not apply their labor laws extraterritorially. (Points : 1) True False 3. Annually, the International Labor Organization holds a General Conference at which the Conference Committee on the Application of Conventions and Recommendations prepares and presents a special list of governments which have defaulted on their obligations to the ILO. (Points : 1) True False 4. The oldest international organization that encourages and promotes international monetary cooperation is the: (Points : 1) Bank for International Settlements. Citibank of New York. International Monetary Fund. World Bank. Bank of New York Mellon. 5. Workers who are leaving one European Union member state and entering another must produce: (Points : 1) an exit visa. an entry visa. a passport or identity card. All of the above. Both b. and c. above. 6. Only “specific subsidies†are subject to the “disciplines†of the WTO’s Agreement on Subsidies and Countervailing Measures. (Points : 1) True False 7. Currently, the primary intergovernmental organization involved in promoting commodity arrangements is the: (Points : 1) United Nations Conference of Trade and Development (UNCTAD). United Nations Economic and Social Council (ECOSOC). United Nations Food and Agriculture Organization (FAO). World Trade Organization (WTO). None of the above. 8. Which of the following rights guaranteed by the European Union’s European Community Treaty apply to self-employed persons? (Points : 1) Freedom of Movement. Freedom to Provide Services. Right of Establishment. All of the above. Both b. and c. above. 9. The General Agreement on Trade in Services (GATS) allows for developed and developing WTO member states to enter into negotiations targeted at improving the capacity, efficiency, and competitiveness of the developing members and create agreements similar to the GATT’s General System of Preferences and South-South Preferences. (Points : 1) True False 10. The General Agreement on Tariffs and Trade (GATT 1994) allows member states to enter into interim agreements leading to either a free trade area or a customs union to temporarily impose higher or more restrictive tariffs or regulations. (Points : 1) True False

Paper For Above instruction

International trade and commerce are governed by a complex web of treaties, organizations, and agreements that aim to facilitate global economic cooperation while addressing national interests and sovereignty. The intricate framework established by entities such as the World Trade Organization (WTO), International Labor Organization (ILO), and others serve as pillars of international economic law. This paper explores key aspects of these organizations' roles, treaties, and regulations, emphasizing their significance in promoting fair trade, labor rights, and monetary stability.

WTO and Trade Measures

The World Trade Organization (WTO) serves as the global platform regulating international trade rules among member states. A fundamental principle of the WTO is the General Agreement on Tariffs and Trade (GATT 1994), which emphasizes nondiscrimination and fair competition. However, WTO members are permitted to adopt measures contrary to GATT rules if such measures are deemed essential to specific circumstances. For example, measures related to acquiring products in short supply, controlling price surges caused by domestic disputes, or liquidating stockpiles resulting from hoarding are considered permissible exceptions (WTO, 1994). These provisions allow flexibility, ensuring that countries can address unique economic or social challenges without violating international trade commitments.

Labor Laws and International Organizations

Most countries do not extend their labor laws extraterritorially, which means internal regulations primarily govern employment standards within national borders (ILO, 2021). The International Labor Organization (ILO), established in 1919, is the oldest international organization dedicated to promoting and encouraging fair labor standards across nations. Annually, the ILO holds a General Conference where member states' compliance with labor conventions is reviewed, and a list of countries defaulting on their obligations is published (ILO, 2021). This mechanism fosters accountability and encourages adherence to international labor standards, thus promoting decent work worldwide.

International Monetary Cooperation

The quest for international monetary stability led to the creation of organizations such as the Bank for International Settlements (BIS), which is recognized as the oldest international financial institution promoting monetary cooperation among central banks (BIS, 2022). Other pivotal organizations include the International Monetary Fund (IMF), which supports global monetary stability through financial assistance and policy advice, and the World Bank, which focuses on development and poverty reduction (IMF, 2022; World Bank, 2022). These entities collaborate to foster a stable monetary environment and facilitate economic development, especially in times of crisis.

European Union Travel and Rights

European Union (EU) regulation allows free movement of persons among member states, facilitated by the issuance of passports, national identity cards, or both (EU, 2016). When EU workers move from one member country to another, they typically need to produce a passport or identity card; an exit visa or entry visa is not generally required within the Schengen Area, which underscores the EU’s commitment to free movement (EU, 2016). The rights guaranteed by the EU treaty notably include the freedom of movement, right of establishment, and freedom to provide services, applying equally to self-employed persons and employees alike. These rights aim to ensure economic integration and social cohesion across member states (European Commission, 2020).

Trade Agreements and Subsidies

The GATT 1994 allows member states to enter into interim agreements such as free trade areas or customs unions, during which they may temporarily impose higher tariffs or regulations as part of the integration process (WTO, 1994). Subsidies are a contentious aspect of international trade, with "specific subsidies" being subject to discipline under the WTO’s Agreement on Subsidies and Countervailing Measures. These regulations aim to prevent distortions in trade caused by subsidies that give certain industries unfair advantages (WTO, 1995). The Agreement strives to balance the rights of nations to support their industries while maintaining fair competition.

Trade in Services and Developing Countries

The General Agreement on Trade in Services (GATS) facilitates negotiations among WTO member states to improve the capacity and competitiveness of developing nations, promoting a more equitable global trading system (WTO, 1991). GATS agreements often include provisions similar to the GATT’s General System of Preferences, offering benefits such as tariff reductions and market access for developing countries, thereby fostering economic growth and integration (WTO, 1991). Both developed and developing countries must work collaboratively to address disparities in trade capacity and to ensure that trade liberalization benefits all.

Conclusion

International organizations and treaties fundamentally shape global economic policies, fostering cooperation, stability, and development. From trade regulations under the WTO to labor standards enforced by the ILO, these institutions govern crucial aspects of international commerce. Understanding their roles, provisions, and the exceptions allowed enriches our comprehension of international business law framework, ultimately supporting sustainable development and equitable growth in the global economy.

References

  • BIS. (2022). About BIS. Bank for International Settlements. https://www.bis.org/about.htm
  • European Commission. (2020). The EU single market: free movement. https://ec.europa.eu/info/food-farming-fisheries/farming/eu-agri-food-policy/single-market_en
  • EU. (2016). The Schengen Agreement. European Union. https://ec.europa.eu/home-affairs/what-we-do/policies/borders-and-visas/schengen_en
  • International Labour Organization. (2021). ILO Principles concerning fundamental rights at work. ILO Publications.
  • IMF. (2022). About the IMF. International Monetary Fund. https://www.imf.org/en/About
  • WTO. (1991). GATS: General Agreement on Trade in Services. World Trade Organization.
  • WTO. (1994). Agreements: General Agreement on Tariffs and Trade (GATT). World Trade Organization.
  • WTO. (1995). Agreement on Subsidies and Countervailing Measures. World Trade Organization.
  • World Bank. (2022). About the World Bank. https://www.worldbank.org/en/about
  • WTO. (2020). Trade Organization’s Role in Promoting International Commerce. WTO Publications.

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