The World Trade Organization (WTO) was established January 1, 1995. Before WTO’s inception it was known as the General Agreement on Tariffs and Trade (GATT). However, GATT was not treaty, therefore “the provisions of GATT were binding only insofar as they are not inconsistent with a nation’s existing legislation” (Aaronson, n.d.). Many proponents of labor sometimes consider the WTO a very controversial organization. Many labor advocates feel that free trade has a negative impact on employment and the economy here in the United States. According the WTO website, “The World Trade Organization (WTO) is the only global international organization dealing with the rules of ...view middle of the document...
* The Trade Policy Review Body is also composed of all the WTO members, and oversees the Trade Policy Review Mechanism. It periodically reviews the trade policies and practices of all member states.
* The Dispute Settlement Body is also composed of all the WTO members. It oversees the implementation and effectiveness of the dispute resolution process for all WTO agreements, and the implementation of the decisions on WTO disputes.
* The Councils on Trade in Goods and Trade in Services operate under the mandate of the General Council and are composed of all members. They provide a mechanism to oversee the details of the general and specific agreements on trade in goods (such as those on textiles and agriculture) and trade in services.
* The Secretariat and Director General of the WTO resides in Geneva, in the old home of GATT. The Secretariat has no legal decision-making powers but provides vital services, and often advice, to those who do. The Director General, who is elected by the members, heads the Secretariat.
* The Committee on Trade and Development and Committee on Trade and Environment are two of the several committees continued or established under the Marrakech Agreement in 1994. They have specific mandates to focus on these relationships, which are especially relevant to how the WTO deals with sustainable development issues.
The World Trade Organization is a Non-Profit Organization that is primarily funded by its 160 member nations. The WTO had a 2014 total budget of 197,203,900 CHF (Swiss Franc) or $211,252,169.25 (USD). However, the WTO does have a few other revenue streams according to the WTO website. “The WTO derives its income from annual contributions from its 160 members (see Table in Appendix) and miscellaneous income. These contributions are based on a formula that takes into account each member’s share of international trade. Miscellaneous income mainly consists of contributions from observer countries, income from the sale of publications and rental of meeting rooms”.
The World Trade Organization has a vision of implementing and promoting world trade that are going to benefit every country. The WTO wants to make sure developing nations have a share in the advantages of expanding international trade. Also, it is their goal to help in global integration and promote competitiveness. Most important through all of these objectives, it is vitally important that the WTO improve global living and speed up the economic development of all its member nations (Sinha, n.d.).
CAGE Framework Analysis
The CAGE Analysis identifies Cultural, Administrative, Geographic and Economic differences or distances between countries and/or business firms that should be addressed when crafting international strategies. It offers a broader view on distance and provides another perspective on the geographic location with the associated risks and opportunities related to global arbitrage. Below is an analysis of...