World Trade Organisation Essay Example | Topics and Well Written Essays - 3000 words

World Trade Organisation - set about ExampleThen after the organisations final decision a decorate is set to hear the issues raised. This panel encourages countries to resolve disputes themselves and if necessary the panel gives compulsory decisions which buns be stired. If a country turns down the appeal then it is forced to change its trade policies or World Trade Organisation authorizes those countries harmed by the policies to call retaliatory measures to the offending country. These measures include an increase in tariffs, use of subsidies or any separate protectionist measure. These measures are a clear indication that World Trade Organisation is based on mercantilist principles and is not aimed at bringing unity among member countries by encouraging free trade. The organisation has principles governing its activities like the non favouritism principle, the reciprocity principle and the transparency principles but it rarely uses them.Mercantilism is termed as an scotch assumption that makes a country prosper. It mostly depends on the capital supply and the volume resulting from international trade. Capital in this possibility is represented by silver, gold and any other(a) trade value which the country has. The capital is change magnitude by creating a positive balance in trade with other nations. The country plays protectionist measures whereby it protects its domestic firms against competitor from strangeers by use of tariffs, subsidies and quotas. Mercantilism contains policies that the given countries should follow. For example, mercantilism allows a country to utilise its soil for farming(a) activities, mining and manufacturing of products. It also allows a country to use its raw materials to manufacture goods since it assumes that finished goods have to a greater extent value than the materials. This rule also discourages the importation of foreign goods and also says that no importation should be make if the goods are produced in the c ountry. Mercantilism encourages countries to obtain imports that are indispensable first in exchange of other locally produced goods but not silver or gold. This practice encourages countries to seek to have a heavy(a) working force because it is one of the policies in mercantilism. Countries are also allowed to seek opportunities for selling excess manufacturers to the foreign firms in exchange of gold or silver. Mercantilists assume that only one country should benefit age the other countries should loose in the process. They also believe that any policies that benefit one country can harm the other country by making that country not to experience economic egress thus not helping them to develop. Although most countries practice liberalism mercantilist principles are still common in other countries. The liberalism method has not benefited all trading partners. Countries practicing neo mercantilism have experienced high economic harvest compared to countries practicing free tra de. For example, the US and United Kingdom have experienced slow economic growth after adapting free trade. WTO