The document provides an overview of the World Trade Organization (WTO), including its functions and pros and cons. It explains that the WTO regulates and facilitates international trade between nations by establishing and enforcing rules. Its key functions include negotiating trade agreements to lower barriers, monitoring members' compliance, settling trade disputes, building trade capacity for developing countries, and outreach. Potential pros are that it simplifies business, promotes harmony and monetary progress, and productively addresses disputes. Potential cons are that it provides little security beyond trade, can be unfair to developing nations, disregards labor rights, favors multinational corporations, and can hamper the environment.

1. Business Environment
Assignment
Group - 2

2. Introduction to WTO
The World Trade Organization (WTO) is an intergovernmental organization
that regulates and facilitates international trade between nations.
Governments use the organization to establish, revise, and enforce the rules
that govern international trade. It officially commenced operations on 1
January 1995, pursuant to the 1994 Marrakesh Agreement, thus replacing the
General Agreement on Tariffs and Trade (GATT) that had been established in
1948. The WTO is the world's largest international economic organization,
with 164 member states representing over 98% of global trade and global
GDP.

3. Functions of WTO
1. Trade
Negotiations :
- Lower customs tariffs
- Set procedures for
settling disputes
- Eg. WTO Doha round
2. Implementation and
Monitoring :
- Transparent trade policies
- Councils to ensure
- members must undergo
periodic scrutiny

4. 3. Dispute
Settlement :
- Resolving Trade Disputes
- Dispute Settlement is the
Central Pillar
- Procedure Underscores
the Law
4. Building Trade
Capacity:
- Difficulties for Developing
countries
- Why is Building Trade
Capacity Important ?
- Supporting Developing
Countries

5. 5. Outreach :
- Across the World
- Try to Reduce
Barriers

6. Pros and Cons
of WTO

7. Pros of WTO
1. Simplifies Businesses :
. Small business and trade
. Cut the cost of the doing
business internationally
- Trade allows a division of
labour between countries
- Non-discrimination is just one of
the key principles
2. Endorses Harmony :
. Principles of Trading System
- Trade without Discrimination
- Free Trade: Gradually,
through Negotiation.
- Predictability: through
binding and transparency
- Promoting fair competition

8. Pros of WTO
3. Rouses monetary
progress :
- Business obstacle alert
mechanism
- Addressed the issue of
responsible business conduct
- Discussion group on scope
4. Productively Knobs
Quarrels :
- WTO’s Responsibility
- proper jurisdiction

9. 5. Hightens National Net
Income :
- Encourage International
Trade
- Leads to Growth
6. Lessens the lifestyle
costs :
- Protectionism is expensive
- Overall incomes can rise
- Food is cheaper
- But there is also a paradox
- Clothes are cheaper

10. Cons of WTO
1. Insecurity :
The only concern of the World Trade
Organization is to govern and
maintain the conditions related to
trade and thus validate the security
of the governments only in the case
of trade. Other than that, the WTO is
not accountable for ensuring the
nations’ security in any other aspect.
2. Unfair :
- Unfair towards the governments
of the developing countries
- developing nations are bound
to suffer more.

11. 3. Disregards Labor
Rights :
The WTO’s primary concern lies
among the interests of big
corporations and governments and
thus does not care about the unjust
behavior towards the laborers and
workers concerned with the trade.
The rights of neither the workers nor
the consumers are protected by the
WTO.
4. Bends Towards
Multinational :
- Hinders developing economies
from growth
- Difficulty in making progress
- Trade rules are unfavorable
towards developing countries
- Rules usually favor multinationals

12. 5. Hampers Nature :
- Environment
- Degradation of natural
resources

13. Participants :
Thanks!
Koushal Singh
Shubh Gala
Ayan Shaikh
Varun Pitla
Uzma Khan
Ria Patwa