Advantages And Disadvantages Of International Trade Organisations

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The idea of founding an international organization to develop and co-ordinate international trade was put forward in 1944 at a conference on economic matters held in Bretton Woods, New- Hampshire, but the details were left for later. After the founding of the United Nations in 1945, multilateral trade negotiations were conducted within the framework of the United Nations. Economic and Social Council adopted in 1946 a resolution in favour of forming an International Trade Organisation (I.T.O). One of the major problems faced by Governments of nations all over the world is the protection of their domestic industry from the competition of the foreign manufactures. To meet the challenge and to protect domestic industry, governments use two devises…show more content…
the UN, of which those meant for international trade development are the International Monitory Fund (IMF), International Bank for Reconstruction and Development (IBRD), popularly known as World Bank. Similarly International Trade Organisation (ITO) to deal with international trade was sought to be set up. The Great Depression of 1930s, and the wide-spread trauma in its wake, were attributed to the restrictive trade and exchange polices of that era. It was clear that post war economic policy would require progress on three broad fronts: exchange policy, trade policy, and investment.

Formation of the
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At the close of World War II, these countries realized that world trade had declined considerably and the impact of decline in world trade showed an adverse effect on all countries in the world. It was therefore, felt that the artificial restrictions imposed on international trade be removed. Meanwhile several negotiations had taken place between each other’s principal supplier countries. Under the ‘most favoured nation rule’ all the concessions made in the course of bilateral negotiations were to be extended to all participating countries. The tariff negotiations between many pairs of countries were completed by October 1947 and provided for major reductions
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