The paper 'International Business Challenges' is a wonderful example of a Business Assignment. International companies carry out their business globally. These firms can sometimes meet various challenges when exploring new markets for their existing products or new products. Firms across the world utilize the World Trade Organization (WTO) in conducting business. They prefer a world trade organization because it is the only efficient global international organization that harmonizes the rules of trade between nations. The primary benefits of trading underworld trade organization are that business organizations are able to predict the future of their products in the market.
To ensure efficiency, multinational companies engage their government so that they can fight on their behalf. Governments consider it essential to support their multinational companies because the effects of multinational companies affect the government in various ways. Multinational companies reflect the weaknesses and strengths of their own country. Because of this, governments can go the extra mile of spending public funds with the aim of supporting individual companies (Becchetti, 2013). The main aim of the government helping their multinational companies is to ensure that the business makes the most use of the existing global trading opportunities.
The government supports its local industries in various ways. Some of these ways include tax reliefs, various forms of grants, goods, and services provided on preferential terms and guarantees. In some other cases, the government can provide assistance to a small business that is facing difficulties in raising capital. The role of the World Trade Organization The world trade organization plays a vital role in international trade. Some of the core functions include the following: Trade negotiation They help in negotiating the terms of trade between countries.
The organization ensures that the tariffs imposed are on the minimum wage. Furthermore, the institution ensures that the countries trading underworld trade organization have no barriers that can interfere with free trade. They normally do this through an agreement that is reviewed yearly. Implementation and monitoring The world trade organization ensures that all the policies and regulations adopted by the members are transparent. The institution scrutinizes all the rules, laws, and regulations adopted by its members. This will facilitate the smooth flow of business because members will know trade regulations that exist in certain countries that they intend to trade with. Dispute settlement There are cases when a member country feels that their rights are violated, especially when negotiating terms of trade.
In such instances, the world trade organization settles such dispute by appointing independent experts. However, it is so hard for such cases to happen because the world trade organization has established procedures and guidelines to be followed when negotiating terms of trade that will guide the entire trading process. Building trade capacity The world trade organization has especially programs that focus on supporting developing countries.
The organization has developed these programs so that they can assist 3rd world countries in improving skills and infrastructure requirements. This is beneficial to develop countries because it improves their capacity to access opportunities just like developed countries (Lee and Wilkinson, 2013). Firms and multinational companies can benefit from the above services provided by the world trade organization if they are represented by their countries. In this way, the government can fight for the firms’ rights in case they are being violated by other members.
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