International Trade and Investment

The World Trade Organization (WTO), is an international organization which unites different countries, thus making them to easily conduct trade exchanges (Journeyman Pictures, 2007). The organization was formed after the Second World War, in the year 1995, in order to cater for the aftermath of the Second World War. The organization’s main aim was to unite both developed and developing countries, thus making them to be able to easily do trade transactions with each other without any problems whatsoever. After its foundation, the organization became successful, with 32 members joining the organization. During this period, most developed countries were the only one’s which had joined the organization. A few years later, after understanding the way the organization operates, most developing and developed countries joined the organization, making the total number of member countries to be 123.

The organization acts as a neutral party between two trading countries, hence its policies are used when trading. The agreement between the two countries is therefore signed by both countries, and kept by the organization. The organization consequently protects the violation of the contract by either of the two countries which signed the contract. In this case, WTO acts as a party which is ready to deal with any disputes which might arise between the two parties, in case of any misunderstandings by both countries (Journeyman Pictures, 2007). Moreover, the organization has been able to bring together both developed and developing countries, thus making them to trade amongst themselves. In addition, the member countries have been able to trade with each other, based on the commodities which the countries have. This has consequently allowed the organization to balance the exchange of goods and commodities between the member countries.

The organization’s policies, are not set by the organization, but by all member countries. This means that, all member countries should agree through a consensus, before a bill is implemented. All member countries are consequently respected and treated equally by the organization, thus allowing each and every country to have a say on the implementation of each and every bill presented before the organization. All member countries have benefitted equally from the organization, since they have been able to easily trade with each other, thus create economic balance in the world (Journeyman Pictures, 2007). After the Second World War, the US was the richest country in the world. This has however changed, after the formation of WTO which has been able to control the flow of trade between its member countries, thus making other countries to also become rich.

On the other hand, WTO solves disputes between its member countries. Disputes are solved using three types of approaches, these approaches include the following, consultation between both parties, establishment of a panel through the approval of all member countries, and through the appellate body. When a matter is forwarded to the organization by one of the parties involved in a contract, the organization allows both of the conflicting countries to reach an agreement through consultations (World Trade Organization, 2007). If a consultation is not successful, then a panel, through the approval of all member countries will be formed, after which the party will listen to both parties and reach an agreement. If one of the parties is not satisfied, then it can challenge the panel’s decision through the appellate body. The appellate body is the final body, which deals with the disputes, and it consequently listens to both parties before making a final decision.

Reference

Journeyman Pictures. (2007).  World Trade Organization. Retrieved from: https://www.youtube.com/watch?v=1Xp75Egtvi8&list=PL104B89261AEF0C68

World Trade Organization. (2007). A Virtual Tour of the WTO. Retrieved from: https://www.youtube.com/watch?v=-ACWHSQxqMc