china and the Wto
...he World bank classification, 208 economies with a population of at least 30000 are ranked by their level of gross national income(GNI) , Lower middle income (LMI) , Upper middle income (UMI),and high income countries. ... HISTORIC PERSPECTIVE World Trade Organization came into being in 1st January 1995.It aims to provide fair and stable conditions for the conduct of international trade with a view to encouraging trade and investment that will raise living standard worldwide. It is one of the youngest international organization, the WTO is the successor to the General Agreement on tariffs and Trade (GATT) established in the wake of the second world war II.The past 50 years have been an exceptional growth in world trade. Total trade in 2000 was 22 times the level of 1950. Moreover, WTO is developed through a series of trade negotiations, or round held under GATT. ... Objectives And functions: · Main objective is trade liberalization, opening of closed economy to international trade and a cut in price support, import tariff and export subsides. · It lowers trade barriers; it also breaks down other barriers between people of different nations. · Administering WTO trade agreements. Forum for trade negotiations. · Handling trade disputes. · Monitoring trade policies. · The committee on trade and development overseas work in this area in the WTO. · Trade raise incomes and stimulates economic growth The WTO gives a framework for the conduct of international trade in goods and services and for the safeguard of intellectual property rights by both administering and enforcing a set of international trading agreements, referred to as WTO agreements. These agreements are the ‘legal ground rules’ (WTO website) for international trade, negotiated and signed by most of the world’s trading nations. The agreements give the member countries of the WTO international trading rights and bind member governments to ensure that their trade policies are in keeping with set limits. However, the WTO is needed because all nations, whom have both perfectly competitive and imperfectly competitive markets, benefit from participating in international trade as opposed to being in autarky. A country, which is in autarky, is one that is self-sufficient and does not trade goods and services with other countries. China’s Prospects In an effort to spark growth and economic prosperity in what has formerly been a stagnant economy, China has been transforming itself over the past decade through reforms in economic, political, and legal spheres. In doing so, it has achieved impressive growth and is on the track to becoming a major global economic player. While China displays huge market potential, or at the least, ever-increasing market importance on the global scale, certain indications remain that investment in China is risky business. These risk indicators include a weak rule of law, and poor system of corporate governance. With China’s recent induction into the World Trade Organization, pressure has been added to remedy these factors, and there is evidence that China is taking steps to do ...