influence on economic activities

• Liberalising trade

  • The WTO aims to liberalise trade by reducing tariffs, quotas and other barriers to trade 
  • By reducing barriers, countries can access global markets more easily, promoting a higher volume of international trade 
• Facilitating market access for goods and services

  • The WTO facilitates greater market access for goods and services between countries 
  • By ensuring fewer restrictions, countries can export their products globally, benefiting from increased trade opportunities and earning foreign exchange
• Promoting economic growth in developing countries

  • This increased trade benefits developing countries by helping them integrate into the global economy 
  • Through trade liberalisation, developing countries can attract FDIs and branch plants, helping them develop production for export markets 
• Economic diversification and job creation

  • Greater market access with the help of WTO lifting trade barriers can lead to economic diversification, job creation and higher standards of living 
  • As trade increases, supporting industries in developing countries also grow, creating jobs and helping economies become less reliant on a single sector
• Opportunities for TNCs

  • The WTO creates opportunities for TNCs to expand into new markets and fragment their production networks 
  • TNCs can sell products to new markets and also set up production across borders to take advantage of cheaper labour or raw materials