Essays on Government-Business Relations - the World Trade Organization and OECD Case Study

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The paper "Government-Business Relations - the World Trade Organization and OECD" is a perfect example of a business case study. The global market is not a level playing ground for all countries in the world. The least developed and developing countries face competition from developed countries that have better technology and produce high-quality products. Policies crafted by international institutions like OECD and the WTO are used to protect the emerging and least developed economies (Granovetter, 2005, p. 37). Despite the claim of democratic deficit, international organizations or institutions have played a crucial role in the attainment of the level playing ground.

Practically many domestic and external factors dictate a country’ s export performance and generally the pace of integration into the global economy since no country operates independently. Trade liberalization enhanced by international institutions has resulted in the elimination of trade barriers especially for tariffs and has led to further costs’ reduction (Aoki, 2007, p. 3). Investment liberalization has allowed companies to differentiate their activities and liberalization in developing and emerging economies has assisted in extending global value chains beyond industrialized countries. Costs have also been brought down by regulatory reforms in key infrastructure and transport sectors like air transport.

International institutions have promoted the adoption of market-friendly policies in developing nations to boost economic development. Some conditions for eligibility of financial aid have been the liberalization of policies towards foreign direct investment (FDI) and trade. FDIs have thrived owing to the functions of international institutions in the global economy. The OECD is a special forum where the governments of thirty-four democracies work together to deal with social, economic, and environmental challenges brought about by globalization.

The OECD group has a leading role in efforts to comprehend and to assist governments to deal with new developments as well as concerns like corporate governance, the problems aging pupation, and the information economy (Mukherjee, 2008, p. 125).  

References

Aoki, M. (2007), Endogenizing Institutions and Institutional Change, Journal of Institutional Economics, 3 (1), 1-31.

Bacchetta, M. & Jansen, M. (2003). Adjusting to Trade Liberalization: The Role of Policy Institutions and WTO Disciplines, Special Studies No. 7, World Trade Organization, Geneva.

Caney, S. (2001). International distributive justice, Political Studies 49 (4): 974–97.

Granovetter, M. (2005), The Impact of Social Structure on Economic Outcomes, Journal of Economic Perspectives, 19 (1), 33-50.

Grant, R.W., & Keohane, R.O., (2005). Accountability and abuses of power in world politics, American Political Science Review 99 (1): 29-43.

Jensen, N. (2004). Crisis, Conditions, and Capital: The Effect of the IMF on Direct Foreign Investment, Journal of Conflict Resolution 48 (48): 194.

Li, J. S. (2003), Relation-based versus Rule-based governance: an explanation of the East Asian Miracle and Asian Crisis, Review of International Economics, 111 (4), p. 651-673.

Milner, H.V. & Keiko, K. (2005). Why the move to free trade? Democracy and trade policy in the developing countries, 1970–1999, International Organization 59 (1): 107–43

Mukherjee, B. (2008). International Economic Organizations and Economic Development, SAIS Review of International Affairs 28 (2): 123–137.

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