Benefits of WTO
World trade organization is an international body that enforces regulations governing trade. Basically, they monitor global trade and settle disputes that may result to maintain peace, thereby creating conducive environment for investment. The organization strives to reinforce international co-operation to ensure that trade issues are solved in a sober manner.
1. Promotes peace
Although this may seem as an exaggerated statement, the organization actually helps to promote international peace, and if you understand why, then you have a clear picture of what its role are in international trade. By dealing with trade disputes fairly, the organization ensures that trade flows smoothly without any hitches whatsoever.
2. The organization handles disputes constructively
As trade increases in volume over a certain period, trade disputes become inevitable especially when the quantity of merchandise traded increases, as well as the number of companies and countries trading. The WTO organization helps to resolve these disputes constructively and peacefully.
3. Reduces inequality
The organization doesn’t have the ability to make a country rich. However, it can help reduce inequalities, which gives developing countries the opportunity to participate in global trade, as well as negotiating trade treaties with bigger countries seeking to broaden their scope. By doing so, smaller countries have bargaining power, and trade is made simple for bigger countries.
4. Regulates production costs
As consumers, the cost of living in terms of food and clothing, as well as luxuries and necessities, are directly affected by the cost of production. Therefore, the WTO organization helps to reduce cost of production by eliminating trade barriers.
5. Provides a wide range of opportunities
Many things are now readily available to you because you can import a wide range of products, from vegetables to fruits, to clothing and foods, as well as flowers and household goods, movies, music, books and so forth.
Many people are skeptic that the system will promote peace and understanding. In the contrast, rich countries would dominate international trade to meet their individual goals at the expense of smaller countries.