Quick Summary
Diagram
Important Table
| Point | Meaning | Example / Use |
|---|---|---|
| Trade Rules | Agreements and principles | Most-favoured nation |
| Dispute Settlement | Resolve trade conflicts | Trade cases |
| Trade Liberalisation | Reduce barriers | Tariff reduction |
| Transparency | Clear trade policies | Notification and review |
Best 10 Marks Answer
World Trade Organization is an important topic in International Business Environment. It helps managers understand how global economic, political, legal, cultural and technological forces affect business decisions.
The World Trade Organization is an international organisation that regulates global trade, promotes trade liberalisation and settles trade disputes among member countries.
In international business, this concept is useful because firms operate across countries where markets, laws, currencies, cultures and competition are different. A business must analyse these factors before entering a foreign market or expanding globally.
For example, a company planning to sell products in another country must study customer culture, exchange rate, trade barriers, legal rules, political stability and local competition.
Conclusion: Therefore, World Trade Organization helps businesses reduce risk, identify opportunities and make better global business decisions.
Tips and Tricks to Remember
- ✅ Mention WTO replaced GATT.
- ✅ Dispute settlement is key function.
- ✅ Use trade liberalisation point.
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