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World Trade Organization Globalization has increased the opportunity for economic growth, which has eventually led us to extensive lobbying among the financial institutions of the world. The influence of the exchange rate has also very much affected the business transactions. This has led the World Bank, World Trade Organization and other UN agencies to control the world market from different levels because of their economic persuasion and extensive consultation on important financial matters. The three economic principles such as nationalism, economic liberalism and structuralism can be used for analyzing the functioning, operations and designs of World Trade Organization (Anon., 2014).
Economic liberalism is considered to be a principle that is in the favor of the laissez faire economy and values the private property which is in production. It can be observed that the World Trade Organization undermines the undeveloped and the developing countries of the world and makes policies in the favor of the developed countries, especially USA (Thompson, 2011). Most of the agreements made by World Trade Organization do not favor the developing countries as they are made in the interest of the developing market, as they plan to build a monopoly in collaboration with USA in order to control the world trade. A clear example of this monopoly is introducing agriculture in GATT-WHO in the 1995 system. It states that the developing countries should learn to feed themselves, giving a clear indication of creating food security in the US because of their reliance on the products produced in USA (Anon., 2013).
The principle of Nationalism which was introduced by Alexander Hamilton works on the policies that help in the economic control by nations. The basic argument raised various nations is that the economic system is considered to be stable when it is controlled by a single country. World Trade Organization should be able to control all the aspects of international trade and should be allowed to exercise its power on the will of all the nations of the world. The influence which is impacted by US in the form of World Bank and World Trade Organization affect the trading conditions of the developing countries. This principle also explains the fact that countries that possess the influence like US have more voting rights than the developing countries (Haroon, 2013).
Structuralism can be used for explaining the design and operation of World Trade Organization. It has been designed in a way to act as a big brother who oversees business transactions taking place between different countries. The structural design of the World Trade Organization exposes the existences of classes of different countries. There are some countries such as USA who possess more influence on World Trade Organization than then others. The reason behind this is that most of the World Trade Organization is financed by USA. This indicates that World Trade Organization creates a state of dependency where some of the countries possess more influence on the organization than the others (Bello, 2000).
Bibliography
Anon., 2013. Competing perspectives about the role and impact of trade in developing countries. [Online]
Available at: http://www.hiidunia.com/2011/01/competing-perspectives-about-the-role-and-impact-of-trade-in-developing-countries/
[Accessed 15 October 2014].
Anon., 2014. World Trade Organization. [Online]
Available at: http://timesofindia.indiatimes.com/topic/World-Trade-Organization
[Accessed 15 October 2014].
Bello, W., 2000. WTO: SERVING THE WEALTHY, NOT THE POOR. September, p. 36.
Haroon, Y., 2013. WTO: Wonderful Trade Organization or Wrong Trade Organization!. [Online]
Available at: http://worldtradereview.com/webpage.asp?wID=743
[Accessed 15 October 2014].
Thompson, K., 2011. Conflict and Structuralism. [Online]
Available at: http://www.kenmorethompson.com/index.php/conflict-and-structuralism
[Accessed 14 October 2014].