Economic definitions - revision

Economic definitions - revision - WTO(Doha round The Doha...

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WTO (Doha round) The Doha Round is the latest round of trade negotiations among the WTO membership. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. Helps promote free trade by persuading countries to abolish tariffs and other barriers to open the markets. It believes a country should not discriminate between its trading partners and it should not discriminate between its own and foreign products, services or nationals. It is the only international agency which oversees the rules of international trade and helps settle trade disputes between governments. Some believe that a disadvantage of free trade is that it has widened the income gap and led to the poor becoming even poorer. They say this is because poorer countries do not have the type of infrastructure and economies of scale to benefit from free trade. The idea behind it is that investment is encouraged, jobs are created and consumers can fully  enjoy the benefits of competition — choice and lower prices. Discouraging ‘unfair’ practices, such as export subsidies and dumping products at below cost to  gain market share. The Doha Round is talks of trade negotiations among the WTO members. Aim to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. Globalisation According to IMF, globalisation is “the process through which an increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies.” Lots of countries increase trade in recent years across international borders through trading blocs e.g. European Union, North American Free Trade Agreement, Mercado Comun del Cono Sur and Association of Southeast Asian Nations. An increase in transfers of  financial capital across national boundaries  including  foreign  direct investment  (FDI) by multi-national companies and the investments by  sovereign wealth  funds  (e.g. Middle Eastern governments buying assets in the UK) The internationalisation of products and services and the development of  global brands  such as  Starbucks, Nike, Sony and Google A key result of globalisation is the increasing  inter-dependence of economies.  
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Not   helping to close the gap between the world's poorest countries and the world's richest. Transnational companies, with their massive economies of scale may drive local companies out  of business.   Outflow of income to original country.
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