Political Science Questions- INR
- What are some objectives and core principles of the World Trade Organization? Discuss also its leadership role in promoting economic cooperation among states.
The World Trade Organization [WTO] is an international level political system that coordinates trade policies among the subscribing countries. Through the organization, governments agree on rules that control the flow of goods between countries to motivate export (Oatley, 2015). One of the WTO objectives is to develop and enforce international trade rules. The organization sets rules of imports and exports where parties can trade without conflicts or biases while ensuring their implementation. Another objective is to settle a trade dispute between member countries (Oatley, 2015). The who provides a mediator platform through the set trade rules to solve a conflict between nations engaged in the war of import and exports.
Two principles guide the WTO in its objectives and rules, including nondiscrimination and market liberalism. Market liberalism is the idea that open trade systems between courtiers improve the living standards of the participating nations (Oatley, 2015). The principle guides the WTO in developing rules which encourage an open market between member states. In the nondiscrimination principle, the WTO creates rules which ensure that countries provide equal opportunities, including privileges and immunities (Oatley, 2015). Through the guide, any intervention, negotiation, and regulations are supposed to apply the same for all countries unless there are regional agreements, for example, to allow free trade.
The WTO leadership role in promoting economic cooperation between member states is to develop rules guiding the system of trade. Economic cooperation between countries requires that members show fairness, especially openness in exports and imports. However, such justice can only exist where there are rules of trade with consequences of violation. The WHO leadership serves as a neutral ground to develop such regulations which allow an open exchange attracting cooperation between states due to their fairness.
The international political economy [IPE] is a field that studies the influence of political institutions, actors, and processes on economic interactions. Unlike the political economy, IPE has the element of international relations and is concerned with identifying problems affected or arising from global economics, the relationship between international politics and social groups (Snider, 2017). Both the economic market and the state are supposed to work independently. However, the increased globalization and complex links among developed nations have led to the interaction and merging of the state and economic markets. The government has become a significant player of trade at the international level by affecting the domestic economic market and hence, dealing with other countries. Through the state engagement, international trade comprises of politics from the state and economic aspects of non-state actors which IPE is concerned in studying their interaction.
The four areas of the global economy are an international business, international development. Macroeconomics and development economics. International business is the cross-border exchange of goods and services and affects the global economy through the ability of countries to interact to a level of allowing liberal trade and sufficient production (Snider, 2017). International development, on the other hand, is the idea that countries vary in levels of development. The concept is an issue to the global economy because it affects engagement in trade due to differences in levels of contribution and economic divide. Development economics, which focuses on approaches to supporting economic development and the potential of people, is also an issue of the global economy due to the impact on the level of international production. Macroeconomics, as another global economy issue area, deals with the analysis of how the whole economy makes decisions, including national and regional spheres. The area is an issue to the global economy because regional and national decisions affect interaction and trade an international level.
References
Snider, E. A. (2017). International political economy and the new Middle East. PS: Political Science & Politics, 50(3), 664-667.
Oatley, T. (2015). International political economy. Routledge.