Business and Management about WTO - Dissertation Example

Liberalization may further affect the terms of trade of a country as well as its prices and competitiveness, which may all result in broader implications for poverty and employment.

This study will investigate some of the potential macroeconomic impacts on the domestic market of a country resulting from its accession to the WTO, in particular, the case of Vietnam’s accession to the WTO will be discussed that will enable us to determine how it may assist our organization to enter new markets. This study will concentrate on the period from 1995 when Vietnam commenced undertaking its negotiations for joining the WTO, up to the date of

31 December 2007 is one year after its accession to the WTO. Since the mid of 1980s, Vietnam has boarded on to the economic reforms and its accession to the WTO has been caused by its drive for bringing economic reforms to its economy and for its better integration into the trading system of the world.

The membership of the WTO-World Trade Organization and the participation in RTAs (regional trade agreements) pose significant challenges for the domestic firms along with bringing several benefits and opportunities to them.  Numerous social concerns related to trade policy reform and liberalization arise with the implementation of the WTO commitments. Domestic businesses might face several challenges while endeavoring to adjust to the pressure of the rising competition in the market that arises from the commitments undertaken by the government of the state in the process of WTO accession. Having done in various countries, the implementation of WTO obligations has a significant impact on the economy and the society of the host country. Thus, we will study the accession of Vietnam’s accession to WTO in order to assess the impact of WTO on firms and thereby, determine how it may help our organization in entering new markets.  For this purpose, we will investigate the role of WTO in the sustainable and equitable economic development of a country. The report will discuss the impact of trade and institutional reforms through the WTO accession by studying and learning from the case study of Vietnam. We will learn, in this report, to capitalize on advantages and minimize the potential negative impacts that emerge from the implementation process by working out the measures as well as through action-oriented recommendations. In specific, the study aims to investigate the following subjects:

1. the impact of WTO over the macroeconomic policies, the public sector as well as the public revenue, in particular;
2. the impact of WTO obligations over the trade performances;
3. the impact of WTO obligations over the industrial sector;
4. the impact of WTO obligations on the business environment as well as on foreign trade investments.
   
   2. Literature Review

In recent years, many studies on the impact of WTO membership on the new markets have emerged. The first most detailed econometric study on the impact of WTO has been provided by Rose (2004). In his work, Rose (2004) employed a standard gravity model that used some dummy variables and time fixed impact to particularly account for the impact of formal participation and membership of the WTO. The OLS and the time-fixed effects were used to estimate the proposed model.