Help Your Business Flourish With The International Trade Laws

By: Gaurav Batra In: Business Last Updated: 2011-11-14

To have a risk free business, adoption of certain laws and ethics is essential. In order to avoid unfair trade practices, implementation of certain laws became indispensible. Thus, all the Trade execution takes place under the regulation of International Trade Laws. These laws authorize trade between two companies or countries. Formulated by the World Trade Organization (WTO), these laws have lead to economic liberalization. The major aspects concerning such laws include: What is Subsidy? Subsidy refers to any financial payment, which a government makes for supporting a small business firm. A Subsidy comes with its own pros and cons. Advantages:

Enhances competition amongst the traders.
Less expensive products for the end user
Facilitates trade protection

Disadvantages:

Industry becomes globally uncompetitive
Requires more protection

What is Tariff? Tariff is a kind of trade barrier imposed by the national government. Though it secures the interest of the local competitors, it results in making the products expensive. The trade union is the most beneficial segment since their interests lie in the domestic industries. Attempts made by WTO: WTO has played a significant role in the smooth functioning of trade activities. Some of the contributions of WTO can be accounted as follows:

Protect excess subsidies or tariffs dumping
Provides a forum to solve and negotiate disputes
Minutely administers all the agreements
Ascertain transparencies of the trade policy
Evaluates all the trade policies
Offers technical training to developing and under developed countries
Reviews global trade on a regular basis
Acts as a core for all trade related economic research and evaluation

It is highly essential to have complete knowledge of the aspects and regulations in purview of these international laws. You can assure this by going through the annual publications as well as research reports of WTO.