The paper "Advantages and Disadvantages of Joining the World Trade Organization " is an outstanding example of a business case study. The World Trade Organization is an international organization and its main concern or area of operation is focusing on the rules that govern trade between nations (Elsig, 2010). This governance is essential so as to ensure that there are lees conflicts in international trade. It also ensures that in times of conflicts they are resolved in an orderly manner. These among other many benefits that are associated with joining WTO have made many nations to be part of the organization (World Trade Organization, 2007).
At the same time, there are disadvantages that accrue from joining WTO. Some nations, which are yet to join the organization, are still debating whether to join or not. This paper will explore both the benefits of joining WTO as well as the disadvantages associated with it. It will further seek to address the issue of how WTO can be used to benefit the developing nations so that they reap as many benefits from the organization as their developed counterparts. Advantages of joining WTO Joining WTO helps a nation to expand her export trade and at the same time attract foreign capital.
Any nation that joins the world trade organization gets the benefit of trading with other nations in the organization. This increases the comparative advantage that these nations have as now they are able to trade their goods in more markets than they were previously capable of. The opening of more markets also helps a nation to increase her production and use its competitive advantage over those nations with inferior products as compared to its products (Wilkinson, 2000).
Improvement or increase in production, in turn, means a better balance of trade and this goes a long way to improve the economy of a nation. When a nation joins WTO it has to abide by the conditions of the organization and this means it, in turn, has to open its domestic market. This, in turn, causes other nations to invest freely into this nation. This means that foreign expertise and technology are introduced into this nation and this initiates further economic development in the nations.
By joining the WTO a country is able to use foreign technology and foreign capital to improve its old industries and improve them. This raises the industrial level of that nation (Elsig, 2010). Joining WTO also makes a nation to have a competitive economic environment. This emanates from the fact that the introduction of a new range of products in the internal market will make the producers produce better quality products so as to compete effectively with the products in the market. This thus improves the internal industrial conditions.
It also makes the cost of living within a nation lower (Foster, 2008). This is due to the fact that when a nation joins the WTO they are able to import the equipment and machinery for production at a lower price. This, in turn, causes these nations to produce at a lower cost and the goods are in turn cheaper. This makes people in the nation to have higher disposable income. This arises from the fact that they can buy goods at cheaper prices at the same salary level (Macrory, Appleton & Plummer, 2005).
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