Law 5110 Study Guide - Quiz Guide: National Treatment, General Agreement On Tariffs And Trade, Absolute Advantage
Document Summary
The world trade organization (wto) is the only international organization dealing with the globalized rules of trade between nations. Its main function is to endure that trade flows as smoothly, predictably and freely as possible. Wto as fully independent international organization between" nations traders & In the past: protectionism: trade inherent in the course of human development, protectionism versus free trade, tariffs (to protect domestic producers from foreign competition, politicians determine the level of state intervention, economists aim at enhancing free economic exchange. First theories of free trade: adam smith (1776): absolute advantage, david ricardo (1817): comparative advantage. Pros: greater free trade, greater movement of labor and increased capital flows. It deepens the clashes between the rich and the poor. It benefits transnational corporations and exploits the poor: the interests of developing countries are not sufficiently expressed, affects labor standards, working conditions, affects environment.
