The World Trade Organization Case Study Example | Topics and Well Written Essays - 2500 words

The World Trade Organization - Case Study Example These are just some of important concepts in international business. These concepts are very essential in understanding international business so as to know how it works in the international arena. Furthermore, it is important to understand these concepts so as to understand international business and other activities related to it. There are many issues surrounding international business. Understanding them is as important as learning and becoming a part of the international business ground. Over the years since international business began, every nation has learned to protect itself against foreign competition. High tariffs on imports of manufactured goods were imposed to protect domestic industries from foreign competition (Hill 2003, p. 8). This stands as one of the most significant barriers to international trade. This significant barrier is one of the most controversial issues which ignited agreement among nations working out in the elimination of tariffs on international trade. This has something to do with globalization which aims to unify the world as one whole single market which further is aiming to target and alleviate poverty. The bottom line of this is a fair economy as a stepping stone towards increased level of equality among nations. In fact, these good promises of globalization are just among of the reasons for the penetration of globalization in international trading. The power of globa... 2. A tendency towards cultural convergence has reduced the differences between national market characteristics, thereby reducing the cost of adapting products to those specific markets. 3. Improve communications (e.g. the telephone, air travel and the Internet) have reduced the cost of dealing with far-away places. 4. The emergence of large multinational corporations (MNCs) has facilitated the process of seeing the world as one global market. The power of globalization is indeed good and inevitable. On the other hand, it also means risk. According to Rosenberg (2002), in the opening of a nation's economy, a nation makes itself susceptible to contamination from abroad. In fact, a nation might probably be subjected to footprints of special interests. This is now then the reason that in the development of world trading system, international policies have to be implemented. Its implementation can just be significantly realized through the aid of the business environment. In business environment, the political environment has a great influence in shaping the general nature of the external environment as well as being responsible for passing legislation that affects specific types of organization (Palmer & Hartley 2002). The political environment has the capacity to impose multilateral agreement between governments. This agreement has made it possible for the implementation of World Trade Organization to have a significant influence to access overseas markets for a number of industries. World Trade Organization (2008) simply tries to present itself as a negotiating forum, set of rules and to provide help to settle disputes arising from conflicting interests among nations participating in international business. The present round of