"The World Trade Organization"Introduction
In this exercise, students will examine the role of the World
Trade Organization and research how it attempts to promote
trade and enhance the welfare of the peoples of its member
nations. Lesson Description
Students will use information from the World Trade Organization
(WTO) Web site to learn about the functions of the WTO. Students
will read about the goals of the WTO, the methods it employs,
and its organization. Students will then answer four questions
and apply this information by creating a chart defining the
benefits of global trade both to smaller, developing nations
and to larger, industrialized nations. Previous Knowledge Expected World Trade Organization: world's largest trade agreementcurrently
includes 134 nations developed nations: nations with relatively high standards
of living and economies based more on industry than on agriculture
developing nations: nations with little industrial
development and relatively low standards of living Applied Content Standards (from the National Council on
Economic Education)Standard 3: Different methods can be used to allocate
goods and services. People, acting individually or collectively
through government, must choose which methods to use to allocate
different kinds of goods and services. Instructional Objectives - Students will to able to recognize the purpose of the WTO
and evaluate how its practices affect global trade.
- Students will be able to use this knowledge to chart the
benefits of global trade to both developing nations and developed
nations.
Student
Web Activity Answers- The WTO consists of over 130 members, accounting for over
90% of all world trade. The top-level decision-making body
is the Ministerial Conference, which meets at least once every
two years. The next level is the General Council, which meets
several times each year to review trade policies and disputes.
Reporting to the General Council are the Goods Council, Services
Council, and Intellectual Property Council. Specialized committees,
working groups, and working parties deal with specific agreements.
The WTO Secretariat supplies technical support to council
and committees and legal assistance in settling disputes.
- The WTO's trade system encourages trade to flow smoothly,
freely, fairly, and predictably by several means. The WTO's
agreements, which organize the global rules of trade among
nations, are central to the WTO trade system. With trade barriers
lowered, trade among WTO members increases. In the event of
trade disputes, the WTO acts as a forum for negotiation. The
WTO also reviews national trade policies and assists developing
countries in trade policy issues through technical assistance
and training programs.
- Developing countries are given special consideration in
their compliance with WTO agreements so that they can increase
their ability to trade. Special provisions include: a longer
time frame for implementing agreements and commitments; measures
to increase trade opportunities; provisions requiring all
WTO members to safeguard the trade interests of developing
countries; and support to help developing countries build
the infrastructure for WTO standards.
- By promoting peaceful trade among nations, WTO trade agreements
help to protect economies in transition from threats of war.
Healthy commercial relationships lead to lessened political
conflict. Additionally, freer trade can cut the costs of goods
and services, and the cost of living. By discouraging trade
quotas, the WTO agreements help transitional economies keep
competition up and prices down. Unhampered trade also helps
provide for a greater supply of goods.
- Students' charts will vary.
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