World Trade Organisation

Homework owing…

• Investigate these abbreviations & what are they….:

–MMC–GATT–WTO

• And read article on China economy – answer Q’s at end of article.

Article Questions:1. What has the Chinese central bank done recently to

influence external economy’s interest rates?

2. Explain how China ‘generated’ their boom in domestic consumption. Show the impact of this on an AD/AS diagram (think carefully of positioning of AD)

3. What does it mean that the Chinese economy is under threat of overheating?

4. Draw a PPF for the Chinese economy… justify your choice of position for their economy. (use consumer V capital goods as your axis)

5. What ‘raw resources’ do you think that China is ‘scooping up’? Why are they needed?

6. Search the internet for images – Chinese economy – select 3 & explain what they are trying to portray.

World Trade Organisation

Syllabus Aims…

• Understand the role of the World Trade Organization (WTO) in trade liberalisation; trading blocs.

• The distinction between different types of trading blocs should be understood.

• Possible conflicts between trading blocs and the WTO should be considered.

What’s the link to today’s topic?

...exceed the ceiling agreed by the World Trade Organisation. In November, the EU raised its...of

1.37m tonnes permitted by the World Trade Organisation. This limit has now been

reached...increase in exports, saying that the world is “crying out for sugar

China on Monday reiterated rules that most of the screen time in the nation's cinemas be given to domestic films, after it cut short the run of US

blockbuster "Avatar".

What is the WTO?

• Originally formed in 1995 the WTO was designed to liberalise world trade.

• The World Trade Organisation deals with regulation of trade between participating countries; – it provides a framework for negotiating and

formalising trade agreements, – and a dispute resolution process aimed at enforcing

participants’ adherence to WTO agreements.

Everyone in green = member of WTO

Who researched WTO before Xmas

as the ‘trade group’?

http://www.youtube.com/watch?v=1gT_w6DQAds&feature=SeriesPlayList&p=DE65C9FE5A130D72

The 10 benefits of WTO

1. The system helps promote peace2. Disputes are handled constructively3. Rules make life easier for all4. Freer trade cuts the costs of living5. It provides more choice of products and qualities6. Trade raises incomes7. Trade stimulates economic growth8. The basic principles make life more efficient9. Governments are shielded from lobbying10.The system encourages good government

Recent WTO trade talks

So why the protestors?

So why the protestors?

• Battle in Seattle. Battle in Seattle is a film about the 1999 mass protest against the World Trade Organization's (WTO) meeting in Seattle.

You tube clips…

• History

• http://www.youtube.com/watch?v=1Xp75Egtvi8

• Battle in Seattle

• http://www.youtube.com/watch?v=pF2Le9ccI9E

Customs Union V Free Trade?

• Free trade

• Where a group of countries agree to trade without barriers between themselves, but maintain their own individual barriers with countries outside the area.

• Eg NAFTA

• Customs Unions

• This goes further than free trade, which eliminates not only barriers to trade between the member countries BUT also to have a common tariff barrier against the rest of the world.

• Eg The Single Market

Go to their website

http://www.wto.org/

Reading info on WTO• http://news.bbc.co.uk/1/hi/business/8237317.stm

• Recent ‘rulings’• China book’s, DVD’s & films

http://www.bbc.co.uk/worldservice/business/2009/12/091222_wto_china_ruling.shtml

• EU illegal subsidies…• http://news.bbc.co.uk/1/hi/business/8237317.stm

• Guardian has a section dedicated to WTO• http://www.guardian.co.uk/world/wto

• Charity group against WTO• http://www.traidcraft.co.uk/get_involved/campaign/wto

Homework

• P476 – 478

• Create notes – can be ‘own notes’, poster or news letter style….

– What is the WTO?– What are the 2 main functions?– Provide a balanced view about the criticisms

of the role of the WTO.