9781422281192

The ship and plane have two things in common. Both are bound for England, and both carry products that are being exported by Mediterranean trading partners . There are two important differences. Obviously, the ship can carry many times as much cargo as the airplane. However, the plane can make many flights back and forth in the time it takes the ship to make one voyage. The advent of air transport in the 1920s brought a new dimension to international trade. From then on, buyers could obtain foreign goods very quickly, if they needed or wanted them badly enough and were able to afford the Watchdog of World Trade T he agency responsible for enforcing international trade laws and agree- ments today is the World Trade Organization. It hears disputes between trading partners and monitors trading practices around the world. Created in 1994 and headquartered in Geneva, Switzerland, the WTO assumed wider powers than previous governing bodies. Its predecessor was GATT, representatives of countries that had signed the General Agreement on Tariffs and Trade. GATT had overseen only the exchange of merchandise among countries. The World Trade Organization additionally has authority over international services (Internet, telephone, etc.) and protects the rights of intellectual property owners. Representatives of member governments negotiate and make the rules by which the WTO acts. Besides regulating import and export activities, the organization’s objective is to assist product sellers and service providers in promoting and transacting their businesses across borders. It provides tech- nical training and aid for developing countries. As of November 2015, 162 nations were WTO members. The adminis- tration consists of more than 600 staff workers under the supervision of a director-general.

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