1. What is the role of the WTO? How does the WTO relate to international marketing? Does it really have any power?
2. What are some examples of trade barriers, and how will they affect your international marketing efforts?
3. What is the Foreign Corrupt Practices Act? How does it affect the way you will do business in other countries?
4. Is it ethical to market products in other countries that do not meet US product safety standards? Why or why not?
World Trade Organization and Its Role
The World Trade Organization (WTO) is an international organization which works for the settlement of industrial disputes of the industries in between and among the nations (Morkel & Roffey, 2001). The main aim of establishing the WTO is to help producers of goods and services, exporters and importers to conduct their business. The business environment of the world is greatly influenced by WTO principles and agreements (Wall & Rees, 2004). Along with the trade in goods, the WTO Agreement also includes services and intellectual property. WTO is a more powerful body with enlarged functions than the GATT (Morkel & Roffey, 2001).
It also provides technical assistance and training for developing countries (Wall & Rees, 2004). In the international market WTO helps to achieve further liberalizations through negotiations. It is also resolves various disputes among the countries without any discrimination (What role does the WTO play in the international arena? 2008). WTO has the power to govern the multilateral trade relations among its member nations and providing forum for negotiations, settling trade disputes among its member nations, monitoring national trade policies, co-operating with other international organizations like the IMF, IBRD etc. (Morkel & Roffey, 2001).
A trade barrier is a common term that explains any regime policy or instruction that confines international trade (Radcliffe, 2009). It can take many shapes, including import duties, import licenses, export licenses, import allowance, taxes, subsidies, non-tariff barriers to trade, local substance necessities (Morkel & Roffey, 2001). Most of the trade barriers work on the similar principle i.e. the obligation of some kind of cost on trade that lifts the price of the traded products. Other trade barriers comprises of differences in culture, traditions, society, laws, language and exchange (Trade Barriers Regulation, ...
The solution examines the role of the WTO and Foreign Corrupt Practices Act. The ethical market products are determined.