{"id":2843,"date":"2023-02-19T16:10:54","date_gmt":"2023-02-19T16:10:54","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-3-4-1-international-cooperation\/"},"modified":"2025-05-19T21:36:57","modified_gmt":"2025-05-19T21:36:57","slug":"learn-it-3-4-1-international-cooperation","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-3-4-1-international-cooperation\/","title":{"raw":"Learn It 3.4.1: International Cooperation","rendered":"Learn It 3.4.1: International Cooperation"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Describe the role of international organizations in global business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Describe the role of international organizations in global business<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Describe how trade agreements help global business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Describe how trade agreements help global business<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>International Cooperation<\/h2>\r\n<p>In this section, you will learn about international organizations that support shared prosperity among nations and how cooperation between countries can promote global trade.<\/p>\r\n<h2>The World Trade Organization<\/h2>\r\n<p>The <strong>World Trade Organization (WTO)<\/strong> has emerged as the world\u2019s most powerful institution for reducing trade barriers and opening markets. The advantage of WTO membership is that member countries have lower trade barriers among themselves. Countries that don\u2019t belong to the WTO, such as North Korea and Eritrea, must negotiate trade agreements individually with all their trading partners. It currently has 166 members and 23 observer governments.[footnote]WTO. \u201cWTO Members and Observers.\u201d Accessed May 19, 2025. https:\/\/www.wto.org\/english\/thewto_e\/whatis_e\/tif_e\/org6_e.htm[\/footnote] WTO members account for almost 97 percent of global trade and 98 percent of global GDP.<\/p>\r\n<p>The most important functions of the\u00a0WTO are:<\/p>\r\n<ul>\r\n\t<li>Overseeing the implementation and administration of the agreements between nations that fall under the WTO\u2019s scope of authority<\/li>\r\n\t<li>Providing a forum for negotiations and settling disputes among nations<\/li>\r\n<\/ul>\r\n<p>In recent years, the WTO has also made it a priority to assist developing nations upon joining the WTO. Many developing countries and emerging markets lack the experience and technical expertise needed to deal with large and very comprehensive trade agreements. The WTO provides them with critical training and support, thereby ensuring that the WTO is inclusive and equitable toward\u00a0both the wealthiest and the poorest nations in the world.<\/p>\r\n<p>WTO members are required to publish their trade regulations and follow a system that allows external parties to review and evaluate any administrative decisions and their\u00a0impact on\u00a0trade regulations. When a WTO nation changes its trade policies, those changes must be reported to the WTO.\u00a0Overall, the WTO\u2019s mission is to improve the stability and predictability of global trade. As a result, it tends to support free trade rather than protectionist tariffs and strongly discourages the use of quotas and other such restrictions.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"225\"]3827[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Describe the role of international organizations in global business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Describe the role of international organizations in global business<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Describe how trade agreements help global business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Describe how trade agreements help global business<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>International Cooperation<\/h2>\n<p>In this section, you will learn about international organizations that support shared prosperity among nations and how cooperation between countries can promote global trade.<\/p>\n<h2>The World Trade Organization<\/h2>\n<p>The <strong>World Trade Organization (WTO)<\/strong> has emerged as the world\u2019s most powerful institution for reducing trade barriers and opening markets. The advantage of WTO membership is that member countries have lower trade barriers among themselves. Countries that don\u2019t belong to the WTO, such as North Korea and Eritrea, must negotiate trade agreements individually with all their trading partners. It currently has 166 members and 23 observer governments.<a class=\"footnote\" title=\"WTO. \u201cWTO Members and Observers.\u201d Accessed May 19, 2025. https:\/\/www.wto.org\/english\/thewto_e\/whatis_e\/tif_e\/org6_e.htm\" id=\"return-footnote-2843-1\" href=\"#footnote-2843-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a> WTO members account for almost 97 percent of global trade and 98 percent of global GDP.<\/p>\n<p>The most important functions of the\u00a0WTO are:<\/p>\n<ul>\n<li>Overseeing the implementation and administration of the agreements between nations that fall under the WTO\u2019s scope of authority<\/li>\n<li>Providing a forum for negotiations and settling disputes among nations<\/li>\n<\/ul>\n<p>In recent years, the WTO has also made it a priority to assist developing nations upon joining the WTO. Many developing countries and emerging markets lack the experience and technical expertise needed to deal with large and very comprehensive trade agreements. The WTO provides them with critical training and support, thereby ensuring that the WTO is inclusive and equitable toward\u00a0both the wealthiest and the poorest nations in the world.<\/p>\n<p>WTO members are required to publish their trade regulations and follow a system that allows external parties to review and evaluate any administrative decisions and their\u00a0impact on\u00a0trade regulations. When a WTO nation changes its trade policies, those changes must be reported to the WTO.\u00a0Overall, the WTO\u2019s mission is to improve the stability and predictability of global trade. As a result, it tends to support free trade rather than protectionist tariffs and strongly discourages the use of quotas and other such restrictions.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3827\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3827&theme=lumen&iframe_resize_id=ohm3827&source=tnh&show_question_numbers\" width=\"100%\" height=\"225\"><\/iframe><\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2843-1\">WTO. \u201cWTO Members and Observers.\u201d Accessed May 19, 2025. https:\/\/www.wto.org\/english\/thewto_e\/whatis_e\/tif_e\/org6_e.htm <a href=\"#return-footnote-2843-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":24,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Reading: The World Trade Organization (WTO)\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Question\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Introduction to Business\",\"author\":\"Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. 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