WTO: Need for WTO

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The ppt describes the need for trade and the role of WTO in international trade. It also briefly touches on the issues between developed and developing countries in trade


Type: ppt

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PowerPoint Presentation : COUNTRY A COUNTRY B Basis of Trade Sugar Electronics Resources Resources Labour Capital SUGAR ELECTRONICS SPECIALISE

PowerPoint Presentation : PROBLEMS IN TRADE EXPORTS COUNTRY A SUGAR COUNTRY B P Q D S P S’ P’ Q Q’ 500 MT TOTAL PRODUCTION 150 MT EXPORTS SUPPLY PRICE VILLAIN: TRADE 350 MT DOMESTIC MARKET

PowerPoint Presentation : PROBLEMS IN TRADE IMPORTS COUNTRY A COUNTRY B ELECTRONICS DOMESTIC PRODUCER FOREIGN PRODUCER SMALL BIG LOW ON RESOURCES RESOURCE RICH WIPE OUT VILLAIN: TRADE

PowerPoint Presentation : TRADE RESTRICTIONS TARIFF TAX ON IMPORTS – Import Duties Increases the cost of exporting for foreign co. IMPORT QUOTA/ QUANTITATIVE RESTRICTIONS Restrict the AMOUNT of imports SUBSIDIES Provide grants to domestic producers to lower cost of production PRODUCT STANDARDS Announce tough product standards that will raise cost of production for foreign producers ANTI DUMPING DUTY Higher charge or restriction on products that are deemed to be provided subsidies for exports in the foreign country

PowerPoint Presentation : DEVELPING vs DEVELOPED ECONOMIES USA EUROPE AUSTRALIA ASIA AFRICA SOUTH AMERICA Developed for a long time - Exploited poor countries - Now want developing economies to minimize trade restrictions - Born Poor - Exploited for Generations - Want special treatment and time to grow LEVEL PLAYING FIELD

PowerPoint Presentation : WHY WTO? Trade world is not ideal Countries preach free trade but practice restricted trade Strong domestic lobbies to appease Need a central organization to regulate world trade

PowerPoint Presentation : WHY WTO? - Make world trade environment more “free” - Minimise trade distortions/restrictions - Develop level playing field - Settle trade dispute between countries - Ensure implementation of trade agreements

Mukul Sharma
Professor in Economics
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