Hello and welcome to this podcast. Today, we are going to bring you a very important concept - "How to Promote the Global**".
U.S. companies don't always compete on an equal footing with foreign companies in the international world. In order to level the playing field, Congress passed an anti-dumping law. Dumping refers to the sale of products in a foreign market at a lower price (or even less than cost) in the domestic market. Companies may do this to win over foreign customers, or they may be to dispose of surplus goods.
Dumping is suspected when the difference cannot be explained by the difference in the cost of services in the two markets. Most industrialized countries have anti-dumping regulations. They are particularly concerned about predatory dumping, that is, attempts to control foreign markets by destroying competitors with extremely low **.
The United States recently imposed tariffs on cork imports from Canada. Canada was identified as being below cost 772% to 449% of** priced cork. U.S. customs officers will now impose duties on Canadian lumber exports at a rate of 1741% to 3088%, depending on the business.
From what we've discussed so far, it seems that only action is being taken to limit the world. On the contrary, as explained in this section, ** and international financial organizations are working to increase the number of global **.
The Uruguay Round** negotiations are an agreement that significantly lowers global barriers. The agreement was adopted in 1994 and has so far been signed by 148 countries. The Uruguay Round is the most ambitious global** agreement ever, reducing global tariffs by one-third and projecting an annual increase in global revenues by $235 billion. Perhaps the most notable aspect of the agreement is that it acknowledges new global realities. For the first time, the agreement covers services, intellectual property and investment measures related to **, such as foreign exchange controls.
As a follow-up to the Uruguay Round, a round of negotiations known as the Doha Round was launched in the capital of Qatar in 2001. So far, the round has made little progress in advancing freedom**. Developing countries are pushing to reduce agricultural subsidies in the United States, Europe and Japan. Poor countries say these subsidies stimulate overproduction, leading to global agricultural products Since developing countries' main exports are agricultural products, low levels mean they cannot compete in global markets. On the other hand, the United States and Europe are interested in lowering the best barriers in the service and manufacturing sectors. The ongoing negotiations have become a lightning rod for those who claim that the World Organization (WTO) is in the interests of multinational corporations, promotes it at the expense of protecting the environment, and is unfair to poor countries.
The World Organization replaces the old General Agreement on Tariffs and Tariffs (GATT), which was created in 1948. GATT has a large number of loopholes that allow countries to evade agreements that lower barriers. Today, all WTO members must fully comply with all agreements under the Uruguay Round. The WTO has also developed an effective dispute settlement procedure with strict time limits for resolving disputes.
The WTO has become the world's most powerful institution for lowering barriers and opening up markets. The advantage of joining the WTO is that the barriers between member countries have been lowered. Countries that are not part of the WTO must negotiate separate agreements with all partners. Only a few countries, such as the Democratic People's Republic of Korea, Turkmenistan and Eritrea, are not members of the WTO.
The United States has had mixed results in bringing the dispute to the WTO. To date, it has won slightly less than half of the cases submitted to the WTO. The United States has also won about one-third of the lawsuits brought against it by other countries. In a recent lawsuit lost by the United States, the United States claimed that tuna imported from Mexico did not meet "dolphin safety" standards, meaning that dolphins were not killed during the fishing process. The WTO ruled in favor of Mexico. More recently, the United States has targeted lawsuits against Europe, India, South Korea, Canada and Argentina. Disputes range from European aviation industry practices to India** barriers affecting U.S. automakers.
One of the largest disputes facing the WTO involves the United States and the European Union. The U.S. claims that Europe has provided $15 billion in aid to Airbus to develop the aircraft. The European Union claims that the United States** has provided $23 billion in military research to benefit Boeing's commercial aircraft business. It also claims that Washington State, where Boeing manufactures, has provided the company with $3.2 billion in unfair tax credits.
Two international financial organizations play an important role in promoting global **. The World Bank provides low-interest loans to developing countries. Initially, the purpose of these loans was to help these countries build infrastructure such as roads, power plants, schools, drainage projects, and hospitals. Now, the World Bank is providing loans to help developing countries reduce their debt burdens. To access credit, countries must commit to lowering barriers and aiding private enterprises. In addition to providing loans, the World Bank is a major source of advice and information for developing countries. The United States has provided millions of dollars to the organization to create a knowledge database on nutrition, birth control, software engineering, creating quality products, and basic accounting systems.
The International Monetary Fund (IMF) was founded in 1945, a year after the World Bank, with the mission of facilitating financial cooperation and removing barriers in the process. The International Monetary Organization (IMO) provides short-term loans to member countries that are unable to meet their budget expenditures. It is the lender of last resort to troubled countries. In exchange for these emergency loans, IMF lenders often require significant commitments from borrowing countries to address the issues that led to the crisis. These steps may include reducing imports or even devaluing the currency.
There are no easy solutions to some global financial problems. One option would be to inject more money into the IMO so that it has enough resources to rescue the troubled country and get it back on its feet. In fact, the IMO will be transformed into a real lender of last resort to the world economy.
However, the danger of relying on the IMO is the issue of "moral hazard". Investors will assume that the IMF will bail them out, and will therefore be inclined to take on more and more risks in emerging markets, which could lead to more severe financial crises in the future.
In this podcast, we discuss how organizations can contribute to the world. We have the role of anti-dumping laws, the WTO, the World Bank and the International Monetary Organization. We also discuss some of the challenges these organizations face in promoting global **.
Thanks for listening!We'll see you next time.