World Trade Organization - International Business

Overview

The World Trade Organization (WTO) was created in the year 1995; its goal is to help producers of goods and services, exporter, and importers conduct their business. An issue that nations around the world are experiencing is "dumping," or exporting a product at a price either lower than he price or production or lower than the price of the product in its domestic market. Tariffs have been set in place with the hopes of discourage businesses from practicing dumping in order to further their positions in the international market. The issues surrounding how freely companies and governments can trade within international borders have been debated evenly by countless decision makers. Supporters of antidumping tariffs claim that the heavily interrupt the business of companies and government choosing to dump their products in other countries by preventing prices from being manipulated by producers. It is also argued that it provides protection against a nation from being heavily influenced by the aspects of totally free trade. Although, critics of antidumping efforts argue that they adversely affect the market within the domestic nation by allowing companies to keep their prices higher, thus forcing consumers to agree with paying more for their desired products.

Discussion: Thinking Globally

The average consumer is not interested in the effect that their purchase is having on the overall target market. They are comfortable with knowing that the price they have paid for their good or service agrees with their set budget. It may prove to be true that a consumer can benefit from supporting their nation's domestic product, but the opportunity of saving a material amount of money on a purchase can be considered that better choice depending cultural and political views of the consumer.

The decision to not give the World Trade Organization the authority to punish individual companies is wise choice. This boundary acts as a check and balance of the WTO's power within domestic markets. Although the WTO has major influence on the trade of nations, it is necessary to leave a portion of the authority with the decision makers within the countries of the trading organizations.

U.S. Customs and Border Protection (CBP) has issued guidelines for the collection of anti-dumping and countervailing duties on agriculture and aquaculture imports. The new guidelines will produce shorter times for determining duty rates. Shorter processing times will result in savings for companies that import agriculture and aquaculture products. The period between the time Customs collects initial anti-dumping duties on agriculture products and the time the Department of Commerce determines the final antidumping duty rate has been, on average, 18 months. I agree with the guidelines set by the CBP, they may prove to be beneficial. These guidelines have