World Trade Organization

World Trade Organization

April 30, 2014

The WTO is a huge contributor to economic globalization. It helps to increase trade between countries and make sure trade flows smoothly. One of the purposes why the WTO was formed was to insure peace and less conflict between countries by establishing fair trade. There is however, underlying issues and criticism towards the WTO. Some say that the WTO exploits people and the environment and pay no regard to the public voice.

Source I defines the expectations of the WTO when it had started. The purpose of the WTO was to create less barriers between countries and to have trade liberalization. This can be hugely beneficial to corporations, companies, and governments. By establishing a smooth trade flow there could be more availabilty of products and price reduction of products resulting in a good economy for countries. The WTO also has rules and regulations, that set out good relationships between countries. What this source also says is that having less barriers between countries could become an issue. Protectionism being limited could make it easier for corporations to outsource. Outsourcing can lead to jobs being lost in developed countries and injustices being committed in developing countries. With outsourcing, overseas employees would have to work in poor conditions and for very low wages meaning a profit for corporations. Some could argue that outsourcing is a way for people, in developing countries, to get some sort of income but this would be neglecting those whose jobs are given away.

Source II entitled, “Growth”, compares the relationship between the WTO, transnational corporations, and the world to a tree. It represents that transnational corporations are growing and spreading around the world with the support of the WTO. This source could also be symbolizing how transnational corporations are above countries since they are richer than some governments. This can be a problem because corporations may gain more power than governments. Transnational corporations are beneficial to have in ones country, they can decrease poverty rates and boost the economy. It is easy for transnational companies to move their operations so governments must compete to keep them in their country. Governments use strategies such as lowering taxes, selling resources at cheaper prices, and adapting to policies that will benefit transnationals; to attract and keep them in their country. This in some cases causes these corporations to have the upper hand and may reduce the decision making power of the government.

Source III shows a protest against the WTO. One of the protest signs indicate that free