World Trade Organization (WTO) was founded by different government to regulate the trade between one country and the others. Therefore, the organization offers a variety of products that ranges from giving guidance to solving disputes that may occur between trading partners. It was started in the year 1995 where 123 nations signed into as members under Marrakech agreement. It is headquartered in Geneva, Switzerland’s with at least 600 employees. However, it faces some challenges such as full participation from countries that feels neglected by the policies development at an international level. Therefore, there is slow implementation and development of policies that seek to bring changes to the economy and trade. Its competitive advantage is the flexible solution it offers to different members hence able to solve economic problems that hinders effective trading between different nations (World trade organization).
Roberto Azevedo is the current director general of the organization located in Geneva. WTO offers a variety of products to member countries such as the commodity agreement, consultancy, addressing trade barriers and employment issues. This has seen member countries make informed decision to develop their economy. It makes decisions on behalf of the member countries that needs help. Thereafter, the decision is reviewed by the parliament leading to adoption. It has 161 members from all over the world with 23 governments acting as observers. Members contribute towards the organization welfare through financial contribution and representation (Alexander and Andenæs 23).
In this section, we will discuss about the strength, weakness, opportunities, and threats of the world trade organization.
The strength of the organization is the strong membership from member countries. It enables the organization to operate favorably through provision of services that are flexible to individual members. It therefore insinuates that members will be in a position to solve their economic problems efficiently that has befallen them. Invaluably, trade between countries is enhanced through diverse measures adopted by different countries.
Discrimination between countries by the organization forms its weakness. This is where the organization is seen to be more interested in the western countries more than any other parts of the world. This has led to criticism from other member country who threatens to vacate the organization if there is no changes made in the way it deals with issues as observed in certain regions.
One of the opportunities that the organization is faced with is globalization. This has seen members contribution and participation improved due to the use of technology platforms. In case of any problem, the organization has design and offer services online to members in a designated way. The opportunity has long lasting effect on the relationship between the nations that are part and parcel of the world trade organization.
Political instabilities in some part of the globe threaten the existence of world trade organization. This is because of the fact that the organization is unable to execute its mandate in war torn countries an example of Saudi Arabia’s. The organization employee’s faces death threats from the political class hence unable to work favorably. In other countries, security is at stake hence it is extremely difficult to have a functional office or even hire permanent employees (Alexander and Andenæs 25).
In order to overcome some of the challenges that emanate from the organization operation strategy, there are a number of strategies that need to be adopted. One of the strategies is to have a definite and flexible economic policy that is suited to address specific needs of countries within a particular geographical region. By doing this, the firm will institute standards and put them into place to regulate trade. This will be used to guide the participants as well as the organization in dealing with individual members. In addition, there is dire need to invest in other fields such as leadership training for countries population to ensure that the world is governed by responsible leaders. It is one of the strategies that can be used to counter attack corruption, civil wars, trade disputes, and illegal dealing between nations. In the long last, the firm will benefit from healthy participation as well as contribution to the world development and trade (Alexander and Andenæs 34).
In conclusion, world trade organization has been involved in a variety of disputes resolution meetings in the world that they have solved successfully. It infers that the organization has acquired experience from real life situation they have come across in their daily life. This need to work as a motivational aspect when faced with challenges from countries that opposes the organization’s policies and goals. On the other hand, some countries are discouraged from registering as members due to the negative image prevalent in public domain. Changes in the management strategy of the organization are crucial to the success of firm hence there is need to change the approach used in the current situation in order to lobby for more members into the group. The political climate in a country is also detrimental to the smooth operation of the entity.
Alexander, Kern, and Mads T. Andenæs. The World Trade Organization and Trade in Services. Leiden: Martinus Nijhoff Publishers, 2014. Print.
World trade organization. “WTO | Understanding the WTO – What is the World Trade Organization?” World Trade Organization. world trade organization, 23 Feb. 2015. Web. 2 Aug. 2015.