In This Report I Will Be Identifying The Different Types

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In this report I will be identifying the different types of trade, discussing the role of the World Trade Organisation (WTO) in global trade and how specific trade agreements operate and their impact on international trade.

2 Types of trade
Free trade is the minimal amount of tariffs, quotas and taxes to allow countries to trade “freely”. The opposite of free trade is known as protectionism; the practice of shielding a country 's domestic industries from foreign competition by taxing imports.
There are two types of trade, invisible and visible. Visible trade consists of physical tangible goods which include manufactured goods such as cars and machinery but it also includes agricultural goods like wheat and corn. On the other hand, …show more content…

However Doha Round 2001 still remains to be ratified. It settles trade disputes between member countries. Finally, with 188 members it is argued that this organisation has played a key role in bringing unity and the tighter integration of the world economy. It was known as General Agreement on Tariffs and Trade (GATT) up until 1995. The WTO has four main roles. Firstly, it acts as an orchestra conductor to ensure that all rules are respected. The Doha Round includes agriculture, environment, development etc. so it is no surprise that an agreement between the 188 countries has not been resolved as it is a lengthy process, a consensus among members through a round of negotiations must be agreed. Secondly, a role of trade tribunal. The WTO settles disputes between countries. If countries in dispute cannot settle differences by themselves a definitive ruling will be issued in which the losing party must comply. If it does not comply it is liable to sanctions, over 400 complaints have been filed by WTO members since 1995. Furthermore, it acts as a monitor as it is constantly reviewing trade policies of its members, assessing whether members are abiding by WTO rules. Finally, a training role. Government officials from developing countries are offered training programmes, an average of 35 million Swiss francs is spent annually with Africa as the main beneficiary followed by Asia and Latin America.

4 Trade Agreements
Trade agreements are the product of negotiations

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