Advantages Of WTO Obligation

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Globalization means a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Globalization may become a threat to developing countries. This is because globalization of develop countries may suppress the developing countries. So, WTO obligation may become the way for developing countries to defense their countries from developed countries globalization.

WTO obligation and the trading system offered some benefits in regard to the globalization. The first advantage of WTO agreements is the obligation of WTO helps to keep the peace between the WTO members. In WTO, there is obligation on special provision …show more content…

WTO ensures the fairness in between smaller countries and developed countries. Because of both smaller countries and developed countries are consumers, all of the prices that we pay for our food and clothing, our necessities and luxuries are being affected by trade policies. So WTO obligation lowers trade barriers through negotiation and applies the principle of non-discrimination. As a result, reduced costs of production and reduced prices of finished goods and services, and ultimately a lower cost of living to smaller countries and developed countries as globalization become more increase. So, there are fairness in WTO obligation between smaller countries and developed countries. This also gives impact on food, clothes, goods, and …show more content…

There are many benefits of trade in WTO although there is globalization happen. One of them is Trade allows a division of labor between countries whether smaller countries or developed countries. This is because WTO allows resources to be used more appropriately and effectively for production. In WTO, it offers more than that which helps to increase efficiency and to cut costs even more because of important principles enshrined in the system. For example, the principle of non-discrimination makes both smaller countries and developed countries to give same treatment. Regardless of the globalization that happen, WTO still can help in making the system economically more efficient and cut

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