Int'l Marketing.doc - Assessment #2: 1. Explain the role of...

Assessment #2:
1. Explain the role of the World Trade Organization.
2. Describe the similarities and differences between a free trade area, a customs union, a
common market, and an economic union. Give an example of each.
1. The World Trade Organization (WTO) is the only international organization that deals with
global rules of trade between nations to ensure that trade is as fair as possible and as open as is
practical . It provides a framework for conduct of international trade in goods and services. It
lays down the rights and obligations of governments in the set of multilateral agreements. In
addition to goods and services, it also covers a wide range of issues related to international trade,
such as protection of intellectual property rights and dispute settlement, and prescribes
disciplines for governments in formulation of rules, procedures, and practices in these areas.
Moreover, it also imposes discipline at the firm level in certain areas, such as export pricing at
unusually low prices.