World Trade Organizations or developed Countries Organization? :: Essays Papers

Organizations or Developed Countries Organization? World Trade Organizations or developed Countries Organization? In the 16th century, England had a lot of colonies, which were located in Africa. At that time, the primary function of colonies were to supply raw materials to England, and England can sold all the finished products to the colonies in order to make profits. This story is the beginning of international trade. In the 21st century, international trade is more busy than ever. According to comparative advantage theory, each country should specialize and produce those products if the country has a comparative advantage on those products, and use those products to trade with other countries in order to achieve specialization and exchange theory. However, during the trade process, it may have a lot of problems coming out, so a world organization were established in order to solve those problems and try to make trade into a smooth process. The World Trade Organization (WTO), was established in 1st, January, 1995, which was created during the Uruguay Round Negotiations. There are 146 countries as a member in the WTO. The main functions of a WTO are administering WTO trade agreements, as a forum for trade negotiations, handling trade disputes and monitoring national trade policies. One of the main function of the WTO are to enforce GATS (General Agreement on Trade in Services) and TRIPS (Trade-Related Intellectual Property). But what is TRIPS? It is agreements, which protect invent innovation and design around the world. In other words TRIPS is used to protect copyrights, trademarks which developed countries already, owns most of the shares on these. According to WTO, although TRIPS will bring a short term cost to developing countries, and only short term benefits for developed countries. In the long term it can encourage innovation, discovery in the developing countries. Once the developing country reaches certain levels on protection copyrights or trademark, this TRIPS agreement will benefits to every single person. To explain the short-term benefits to the developed countries, as I have mentioned before, most of the patents, copyrights owned by developed countries, if developing countries want to produce a product that have patents on it, the develop ing countries need to pay a royalty to developed countries or the corporation owns the right. In this TRIPS’ agreement, my argument is this agreement really helps the developing countries to become more innovation, discover, or is just the industrial countries want more money from the poor countries.