The WTO system helps the governments to use an approach of more balanced view on the trade policy. The governments are better-placed in order to prevent themselves from the act of lobbying by the narrow interest groups by focusing on the trade-offs that are made for the benefits of everyone in the economy. Restricting imports may be looked as an alternative in supporting an economic sector but it biases the economy against the other sectors which should not be the subject to penalize. For example, if there are countries that protected their agriculture, other countries will have to pay higher for food, causing tensions on wages of all sectors. In helping to clear things up, the WTO system covers a wide range of sectors.
Environmental sustainability has become an important ingredient in doing business responsibly and also for the purpose of attaining success. Wal-Mart is considered as the world’s largest retailers their actions will have the potential to save our customers money and help ensure a better world for the next generation to come. The Wal-Mart aims at enhancing the economic mobility and inclusion of workers. So as the largest retailer Wal-Mart aims to use the strength to systematically fast-track the improvement skills which upward economic mobility of workers in retail and the product supply chain. There is being a huge opportunity which are being provided by Wal-Mart is that employment opportunity for more than 2 million people around the world.
Developing countries have seen the most change thanks to it, but in order to increment their gains, they must also attract foreign investment (Dollar and Kraay 4). It is imperative for a country who is still developing to globalize in order to bring growth and decrease poverty. There have been multiple examples of success from developing countries as a result from trade, and among them are also Mexico, Vietnam, and Uganda; which have achieved success from their comparative advantages (Dollar and Kraay
It can be true to a large extent, it is advantageous to the country generally as well as this cost minimizing behaviour of the firm would result in a higher degree of specialisation. Trade theory suggests that International Trade (which is always welfare improving) is a result of higher degree of specialization becouse this case occurs due to the increased FDI in the labour abundant country. Edward M. Graham say Foreign Direct Investment operates rather than displacing trade. FDI lets a firm to establish a larger area for distribution and not only produce a larger number of commodities but also increase the number of products sold in the foreign market. It has a faster increasing merger and acquisition across the regions where the globe has given a boost to the flow of Foreign Direct Investment.
Exports will also potentially bring stability to otherwise fluctuating market demands. Because of these reasons, local and national government are attracted to exports because their local businesses can gain a share in the global market. Conclusion Morgan Motors and Wadia are just two examples of companies that would not survive with exporting. There are many benefits to exporting such as increasing sales and profits, reducing the risks of being bound only to the domestic market, balancing growth across multiple markets, and potentially lowering unit costs, and possibly achieving economies to scale. Therefore, these types of companies choose to export for these reasons as well as for gaining the continued ability to survive in the
The next positive aspect which is taken into consideration is that the developing countries now can receive sources of capital, new technologies from developed countries, which is very essential for the growth of a country. And in return, the developing countries let the developed countries’ companies do business in their countries. For instance, you can see McDonald’s store in almost every countries. In general, globalization has benefited both developing and developed nations, and became one of the most important factors that affect a country’s
Since keeping their agreements I the base for international trade among traders, FTA create more stable environments for countries and companies to trust each other. Now, each factor of benefits will be explored in depth. Benefit 1: Increased Production According to the Heritage Foundation, free trade fosters competition, spurring companies to innovate and develop better products while prices are kept low and quality remains high. Free trade allows countries and companies to focus on the goods or services that they do best. This can increase a company’s market share which results in a lower cost and increased productivity.
Main purpose of World Trade Organization is to provide forum for member governments to sought solutions for the problems they face in trading with each other . Foundation The world trade organization came in to existence as a consequence of negotiations and everything that World trade organization performs is the result of Negotiations . The mass of World trade organization contemporary work originates from the 1986 – 94 negotiations named as Uruguay Round and
They applied FDI (foreign direct investment) strategies to overcome the difficulties in exports resulted from tariffs. Due to European have EU (European Union). In some part of internalization such as market and policies have more opportunities than other MNEs. They also have good chance to use technology to break the barriers of time and distance making it simple and possible for multinationals to deal with emerging economies. Expand their businesses and become globally competitive players, European multinational enterprises have expanded their business to the emerging economies because this market having plenty of lower labor costs and capital.
All this because of emergence of new technology. Manufacturing Technology had lead to mass production an very easy task and it leads to saving the time and human energy which was earlier wasted but now with the help of capital intensive techniques human are able to multi tasking. Role of technology in economic development:- Importance of Technology :- In the present age technology is playing very effective role in increasing the rate of economic growth. Today each country considers it is the basic tool of economic development. Only capital cannot bring development in the country.