Its predecessor, the General Agreement on Tariffs and Trade (GATT), shared its lineage with Bretton Woods-inspired bodies like the International Monetary Fund (IMF) and the World Bank.The idea behind these organizations is that impartial politicians could create a more efficient global economy than the chaotic interaction of free market forces.While it's debatable whether the organization is useful economically, the WTO is very important politically.Tags: Technology In Business Research PaperPreparation Of Research ProposalMfa Creative Writing New YorkAiou Assignments MarksHow To Do A Narrative EssayHow To Write A Research Paper FormatPersuasive Essay About The War In IraqIr Assignment Table
Rather than making complicated and heavily politicized agreements between nations on what they can and can't protect, free market thinking suggests that trade should be left to companies to work out on a deal-by-deal basis.
They believe if the WTO were really designed to encourage trade, it would force member nations to drop all protective measures and allow true free trade, rather than facilitating tariff negotiations.
However, the resulting high price of foreign goods allows domestic makers to raise their prices as well.
As a result, a tariff may also work as a wealth transfer tax that uses public money to support a domestic industry that is producing an uncompetitive product.
One problem that many WTO critics point to is apparent concessions the organization has made to its charters.