INTERNATIONAL BUSINESS

International Business

International Business

Discuss the role of each of the following in international business

World trade Organisation (WTO)

The World Trade Organization (WTO) is the sole international organization dealing with multilaterally agreed rules on trade among its member countries. Through WTO agreement, which spell out rights and obligations, member countries operate a nondiscriminatory multilateral trading system that has allowed world trade to grow. The goal is to help producers of goods and services, and exporters and importers, conduct their business in a manner that ensures predictability and stability. The supreme body of the WTO is the Ministerial Conference which is held at least once in every two years. It comprises representatives of all members and functions to oversee the implementation of members' obligations as well as to negotiate new agreements. The GC has the authority to act on behalf of the Ministerial Conference and oversees the operations of agreements and ministerial decisions. (Travis 2007)

World Bank (WB)

The World Bank is a classic example of a bureaucratic organization. It embodies all the characteristics necessary to qualify; from its complicated hierarchy and impersonal relations, to the specialization and career orientation of its employees. However, not everyone agrees on the competency of the bureaucratic organizational system. George and Sabelli in their book Faith and Credit claim that is the very structure of the World Bank which causes its failures, as well as explaining its continued existence despite these mistakes. Using Faith and Credit, with a focus on chapter six, it will be shown that it is the bureaucratic methods themselves which twist the World Bank's goals, and that these methods undermine the tasks which the Bank has set for itself. The World Bank is one of the world's most powerful agencies. (Joshi 2009)

International Monetary Fund (IMF)

The International Monetary Fund (IMF) and World Bank (WB) are international organizations that were created primarily to be of assistance for the growth and development of Third World Countries by providing financial assistance and facilitating development programs. However, the IMF and WB have failed to meet their role to the developing countries. Instead of making things easier, the loans and programs the IMF and WB have made lead to a debt crisis. In order to pay the amortization and accumulated interest from the debts to the IMF and WB, the developing countries use a significant amount of their export earnings or are forced to decrease their imports or seek more external borrowing. This critical situation greatly hinders the developing countries to accomplish their growth and development plans. (Daniels 2007)

The burdens of the developing countries ought to be shared by all. The IMF and WB must sacrifice their profits and formulate more effective, efficient and flexible policies. They must carefully study the case where in the loan would be used and weight its costs and benefits. Growth and development starts with in the country and should not be depended on others. (Travis 2007)

United Nations

The United Nations was formed after WWII to keep peace throughout the ...