Global trade
Global trade Introduction Global trade is trading of goods and services world wide. They extensively boost the economy of a country and lead to its development. Today, developing nations have also realized the importance of global trade. Hence, even they are actively involved in global trading. Few nations have surplus resources while few deficit them. Here, global trade comes in picture. The nation having surplus resources can export them to the countries in need of those resources. It is very essential to regulate the global trading activities.
Regulation of global trade The government regulates the misuse of such trading activities by
They are- The General Agreement on Tariffs and Trade (GATT) formed to develop the economy of the world at the Breton Woods conference. The basic aim behind this agreement was to make global trade more open to all the countries. GATT was earlier an organization with the name International Trade Organization. However; it could not be materialized, leading to the establishment of the World Trade Organization.
WTO- World Trade Organisation is an international organisation, which regulates the various agreements involved the trading of goods and services in global market. It was created in the year 1995 to manage the General Agreements on Trade and Tariff. It determines trade rules between countries and also helps in negotiating and developing of agreements for trade. Countries involved in global trading have to abide by such regulations. Ministerial Conference governs the world trade organization by appointing a director-general and a General Council.The headquarters of the World Trade Organization is located at Geneva in Switzerland.
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) - It is an international agreement made to manage the World Trade Organization. It lays the standards for the regulation of intellectual property. This agreement came into existence in 1994 at the Uruguay round of GATT. TRIPS embrace the procedures for copyrights, patents, trademarks and geographical indications and the various laws dealing with them. It was because to this agreement that the intellectual property laws were introduced in the field of global trade. Despite of criticism, it has been very effective in regulating of trade activities worldwide. Overview Global trade is a boon to individuals, companies and various governments.
Global trading has helped many developing countries to be self sufficient. Nations all over the world are not only trading ordinary resources, but also trading technology. Many countries have taken the advantage of global trade for strengthening their defence power. It is very essential to regulate and control global trade to take the maximum advantage of it. As global trade is not restricted to just to one country, many commissions and organisations have been formed on an international level to regulate global trade. Commissions and organisations like the World Trade Organisation have representatives from different countries to maintain and keep up the interests of all the nations.
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