Global libralization of trade

The World Trade Organization (WTO ) is an international organization which main function is setting out international trading rules . These rules set out by the organization become standards in which disputes between member countries could be resolved . The main goal of the World Trade organization is to limit trade barriers among countries Trade barriers refer to anything usually government regulations which limit the international trade . Trade barriers can come in the form of import duties , import licenses , export licenses , quotas , tariffs subsidies and non-tariff barriers to trade (World Trade Organization

In principle

, trading rules imposed by the World Trade Organization among its members should be founded on the belief that trading systems should be without discrimination , that is , without any one favored country fewer trade barriers promotes greater competition accommodating especially , less developed countries (World Trade Organization . In other words , the function of the World Trade Organization is in part , to promote global liberalization

The issue on the global liberalization of trade is dominated by two opposing views . One is of the liberal institutionalists , which views global liberalization as a process that could promote international economic growth and the other , that of the realists , although not refuting the promise of economic growth , attacks the effects of liberalization on smaller countries

The views of the liberal institutionalists are mainly focused on the importance of international through foreign trade by promoting mutual dependencies among nations . According to Ikenberry , liberals see trade and open markets as a kind of democratic solvent , dissolving the political supports of autocratic and authoritarian governments ' In addition , it is in the nature of global liberalization (that which it fosters economic growth ) that promotes democratic institutions . It promotes specialization among nations , economic evolution as well as competition which in theory is very favorable to the economy . Global liberalization , according to the liberal institutionalists would discourage trading blocks and protectionism which had been the causes of depression and war in the 1930s (Ikenberry

Among all agreements , the Agreement on Agriculture (AoA seems to be most popular . It is founded based on three pillars domestic support , market access and subsidies . Domestic support refers to subsidies that the government agreed to pay or produce . The present system allows Europe as well as the United states to spend 380 million dollars for agricultural subsidies . According to a report by the World Bank , most of the EU support goes to businesses and US , approximately 70 of the subsidies actually goes to the producers . If subsidies continue , products will soon flood , prices will go down and producers will become less . Market access refers to the reduction of tariffs (World Trade Organization

While it is the goal of the World Trade Organization to fuel the economic growth of its members through the promotion of free trade more people argue that it is not the real case . The realists may not be completely against the claim that global liberalization could promote international economic growth . But they emphasize the disparity between the ideals of global liberalization and what...