Impact Of Liberalization On International Trade

1.Introduction

World trade a long time held a leading position in the international economic relations. Trade liberalization is one of the most burning issues of world economy. Free trade is foreign trade relations with which the state does not interfere by means of tariffs and quotas. For a long time, there is a fight around elimination of protectionist barriers and ways of opening the national markets to a free access of foreign goods, services and labour. The Multinational Corporations and developed countries act as consecutive supporters of liberalization. The majority of countries in the world are included into the World Trade Organization (WTO).

4. Main agreements and principles of the WTO

Member countries of the WTO interact within

Trade development, in turn, leads to long-term perspective of an increase in employment, especially in the export sectors of the economy; the factors will also improve the effectiveness of foreign economic activity of the state due primarily to simplifying the system of customs duties and other trade barriers.

You cannot deny the political benefits of the activities of the WTO, namely the government has a greater capacity to protect themselves from the actions of interest groups, as trade policy is carried out in the interests of the economy as a whole, increasing the possibility of fighting corruption due to the allocation of quotas among officials.

From our research, we have figured out that WTO legitimizes international trade cooperation first, to put the countries in the most equal conditions, and then it solves the emerging conflicts.

It may be noted that the impact of the WTO is more positive for WTO member countries because it provide all their needs. On the other hand, it is very likely for an economic crises or a certain kind of balance disorder to occur in a particular trade due to a close economic relationship in the international markets.

5. World Trade Organization

There is a constant struggle over the removal of protectionist barriers and ways of opening up national markets to free access of foreign goods, services and labor.

The most consistent supporters of the liberalization of trade relations are the multinationals and developed countries.

The WTO aims to liberalize international trade.

Commercial operations are divided into major and secure. The main commercial operations are carried out on a reimbursable basis between direct participants.

In international business, various forms of contractual relations. Carried out on a contractual basis tolling, franchising, exchange transactions, banking, dealing, leasing, factoring,