The World Trade Organization is a global international organization that monitors and oversees trading relations between countries. Trading between member countries is carried out under the WTO agreements. This paper discusses various roles played by the World Trade Organization in the global market and analyzes how the organization can influence economic globalization.
The World trade Organization acts as conductor, tribunal, monitor, and trainer by setting out the rules of trade. Member nations established rules to govern international trade in services. The body solves the disputes that arise between member countries in its efforts of exercising trade tribunal responsibilities (Bown, 2005). Moreover, it reviews its member’s trade policies by monitoring whether they abide by the World Trade Organization rules (Sharma, 2012). Lastly, the World Trade Organization offers training programs for the leaders of the developing countries.
Economic globalization refers to the increasing world economic interdependence due to the increased cross-border trade and rapid spread of technologies (Todaro & Smith, 2009). The World Trade Organization has supported economic globalization by encouraging the government to make political decisions to remove institutional barriers to international trade and capital flows (Sharma, 2012). Economic globalization in the contemporary global community would be facilitated by trade agreements, social policy reforms at multilateral and regional levels, and investment liberalization between different countries.
In conclusion, the World Trade Organization has a role of overseeing and ensuring that all the transactions that take place on the international front are done following the rules and standards set. The fact that World Trade Organization works to break barriers across countries so that the international ties can be initiated is a step towards achieving economic globalization.
- Bown, C. P. (2005). Participation in WTO dispute settlement: Complainants, interested parties, and free riders. The World Bank Economic Review, 19(2), 287-310.
- Sharma, A. (2012). World Trade Organization (WTO) and Its Role in Globalization: An Analysis. Youth Ki Awaaz.
- Todaro, M. P. & Smith, S. C.. (E.d.). (2009). Economic development. (12th ed.). Boston: Pearson Addison Wesley.