introduction to global economy & wto_organization

7/28/2019 Introduction to Global Economy & WTO_Organization

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INTERNATIONALTRADE

Lecturer: MAM Amnot ; Room: 23

Economics and FinanceInstitute

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Group Members

1. YANG Maria

2. SIM Kunthea

3. MAM Sokussa

4. POV Sreymeas

5. SIV Chanreaksmey

6. VANNY Vansithsathya

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Introduction to the GlobalEconomy

CHAPTER ONE3


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I. We Live in a Global Economy

II. The Globalization Challenges

III. International Trade and the Nations Standard of

Living

IV. The International Flow of Labor and Capital

V. The Subject Matter of International Economics

VI. Current International Economic Problems

VII. International Institutions and the World Economy

ContentContent

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Understand the meaning and importance of

globalization

Describe the relationship between international trade

and a nations standard of living

Understand the international flow of people and capital

Describe the subject matter of international economics

Objectives5


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Global economy?

International trade: goods and services

Competition: international firms

Labor markets: migration

Financial market: financial instruments, currency

exchange

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Case Study: The Dell PC Is Anything But

American!

Final assemblyDomestic

Parts and components Abroad

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II. The Globalization Challenge

Globalization: greaterinternational

interdependence

Evolution of globalization

1870 1914

Industrial revolution in Europe

Opening up resources-rich and population in other

countries

1945 1980

Increase in international trade

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Cheaper products

Efficient use of labor Development

Efficient finance

Job losses

Low wages Poverty

Financial crisis

Pros Cons

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Solutions

Focus on different aspects of globalization

Social Cultural

Political

legal

Global governance

International organizations

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III. International Trade and The

Nations Standard of Living

How important is international tradeto a nations standard of living?

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Potential Gain for developing nations

employment

Income for consuming various products

large contribution to GDP

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Nations Standard of Living13


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Potential Gain for developed nations

access to domestically unavailable products

Commodity: banana, coffee, cacao, tea

Mineral: Tin

access to products with lower costs

reduce domestic resources consumption

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International trade promotes

interdependence

Economic growth in U.S leads to demand for

import.

Increase in import of U.S leads to growth in

other nations.

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IV. International Flow of Labor and

Capital

Flow of labor

Job creation

Raising living standardEscape from political and religious

oppression

Flow of capital

financial capital (bank loan, bond) high

interest rate

FDI high expectation of profit

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V. The Subject Matter of

International Economics

International trade theory

International trade policy

Balance of payments

Foreign exchange markets

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VI. Current International Economic

Problems

Trade protectionism in advanced countries

Excessive fluctuations in exchange rate and financial

crisis

Structural imbalance in US, Slow growth in Europe

and Japan, and insufficient restructuring in transition

economy

Deep poverty in many developing countries

Resource scarcity and environmental degradation

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VII. International Institutions and

the World Economy

World Trade Organization (WTO)

established on January 1, 1995 in Geneva

Deals with trade policies, trade negotiation, implement

new agreement, and solve dispute between nations

World Bank

established after World War II

provides loan to developing nations to reduce poverty

provides loan to developed nations after damage from

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VII. International Institutions and

the World Economy

International Monetary Fun (IMF)

Washington

oversee global financial system

United Nations (UN)

Established in 1945 in New York city

stop war between nations

maintain international peace and security

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Conclusion

Globalization has both positive and negative impacts.

US relies on international trade.

Capital and labor flow across boundaries.

There are many global economic problems.

There are 4 main international organizations.

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Organization

WTO22


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I. Whose WTO Is IT?

The WTO is a member-driven, consensus-

based organization.

All major decisions are made by the membership

as a whole.

The main advantage of the WTO:

Decisions made this way are more acceptable to all

members.

The main challenge of the WTO:

Reaching decisions by consensus among some

150 members are difficult.

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I. Whose WTO Is IT?24


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I. Whose WTO Is IT?

HODs and other bods: the need for

informality

Since decisions are made by consensus, it is

hard to reach agreement.

Informal meeting is created in order to,

Facilitate negotiation, and

Reach agreement easily.

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II. Membership, Alliance, and

Bureaucracy

How to join WTO: Accession

First

submission of trade and economic policy in

memorandum Second

call for bilateral talk

Third

working parties write a report on membership treaty Finally

working parties present to general council

vote

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II M b hi Alli d


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Bureaucracy

Representing us

Policies are influenced by various interest

groups.

Representing groups of countries

Member states form alliance to raise

bargaining power.

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II M b hi Alli d


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Bureaucracy

The WTO Secretariat and budget

Headed by general director

Responsibility:

Administrative and technical support for WTO delegate

bodies

Technical support for developing countries Trade performance and trade policy analysis

Assistance from legal staff in the resolution of trade

disputes

Dealing with accession negotiations for new members

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III. The Secretariat

Under director general, there are 4 deputy

director general.

They perform different tasks.

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IV. Special Policies

Main function are to do with trade negotiations

and enforcement of negotiated multilateral trade

rule.

There are 4 particular policies supporting these

functions:

Assisting developing and transition economies

Specialized help for export promotion

Cooperation in global economic policy-making

Routine notification when members introduce new trade

measures or alter old ones.

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IV. Special Policies

1. Assisting developing and transition

economies

The WTO Secretariats Training and Technical

Cooperation institute organizes a number of programmes to

explain how the system work and to help train the

government officials and negotiators

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2. Specialized help for exporting : The

international trade center

The international trade centre was established

by GATT in 1964.

it is jointly operated by WTO and the United

nation , the latter acting through UNCTAD( the

UN Conference on Trade and Development)

IV. Special Policies32


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2. Specialized help for exporting : The

international trade center

The Centre responds to requests from

developing countries for assistance in formulating export promotion programmes

implementing export promotion programmes as well

as import operations and techniques

Providing information

Advising on export markets and marketing techniques

establishing export promotion and marketing service

and in training personnel



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3. The WTO in global economic policy

making

WTO mandate is to cooperate with the

International Monetary Fund, The World Bank ,

and the other multilateral institutions to achievegreater coherence in Global economic policy

making .



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3. The WTO in global economic policy making

the declaration recognizes the contribution that trade

liberalization makes to the growth and development of

nation Economies.



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4. Routine notification when members introduce new

trade measures or alter old one

Transparency(1): Keeping the WTO informed

To monitor whether commitments are beingimplemented fully by requiring countries to notify

the WTO promptly.

Example:

detail of any new anti-dumping or countervailinglegislation

new technical standard affecting trade

change to regulations affecting trade in services

laws or regulations concerning the intellectual property



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4. Routine notification when members introduce new

trade measures or alter old one

Transparency(2): Keeping the Public informed

WTO website : www.wto.org over 150,000 in Documents Online

The objective is to make more information

available to the public. importance channel is through Media

http://www.wto.org/http://www.wto.org/


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Thanks for Your Kind

Attention!

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