Got a tricky question? Receive an answer from students like you! Try us!

: The World Trade Organization - Case Study Example

Only on StudentShare
Masters
Case Study
Miscellaneous
Pages 8 (2008 words)

Summary

WTO: The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. At the heart of the system known as the multilateral trading system are the WTO's agreements, negotiated and signed by a large majority of the world's trading nations, and ratified in their parliaments…

Extract of sample
: The World Trade Organization


FDI: Broadly speaking, foreign private capital flows come in two forms: equity and debt. The largest type of equity flow, in fact the largest of all capital flow to developing as well as transitional countries, is foreign direct investment (FDI). FDI is generally a long term investment that involves significant management control. The World Bank defines FDI as investment made to acquire a lasting management interest (usually at least 10 percent of voting stock) in an enterprise operating in a country other than that of the investor. With FDI, equity holders are concerned with their returns over a period of years rather than weeks or months.
FDI is aimed at a very wide range of economic activities, making generalization difficult, but at least three broad groups can be identified. First, from a historical perspective, the largest share of FDI has been in activities related to a country's natural resource endowments, such as mining, agricultural production, and tourism. Second, some FDI in manufacturing is aimed at producing for the domestic market in the host developing country often with protection against competing imports. Third, an increasingly large share of FDI in recent decades has focused on firms engaged in labor-intensive manufacturing aimed for export on world markets.
Ch ...
Download paper
Not exactly what you need?

Related Essays

International Business and Trade. WTO
The widest application of the protectionist movement is in the incubation of new industries which by themselves cannot survive the harsh realities if the competitive market, the idea being the protection will be withdrawn once the company is established (Iowa State university, n.d.).…
6 pages (1506 words)
World Trade Organization Essay
This initial position by developed countries soon came under pressure from other members (especially developing countries). More recently WTO has focused upon the need to sustain an open multilateral trading framework, particularly in the light of the proliferation of regional blocs. In spite of some weaknesses and limitations of its strategies, WTO has benefited the economic growth of developing countries and involves them in free trade relations and international trade. The main question worried many nations and economists "Does WTO really promote free trade or just control the international…
9 pages (2259 words)
World Trade Organization
All of that changed abruptly in 1994, when, contradicting earlier gloomy predicts, the 'Uruguay Round' of trade negotiations under the GATT ended in strengthening the international trading system, but also with an agreement to establish the WTO.…
11 pages (2761 words)