Wednesday, 2 February 2022

Question No. 2 - MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No. 2 “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors”. Discuss and explain the different stressors. 


Internal stress describes what people feel when they're under internal, physical, or emotional pressure. Although it's normal to taste some internal stress from time to time, people who taste high standings of internal stress or who taste it hourly over a long period of time may develop health problems ( internal and/ or physical).
Stress can be caused both by quotidian liabilities and routine events, as well as by fresh unusual events, parallel as a trauma or illness in oneself or a close family member. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors When people feel that they're unqualified to manage or control changes caused by cancer or normal life exertion, they're in torture. Torture has turn inchmeal honoured as a factor that can reduce the quality of life of cancer cases. There's yea some testimony that extreme torture is associated with poorer clinical products. Clinical guidelines are available to help croakers and nursers assess standings of torture and help cases manage it.

This fact length provides a general preface to the stress that people may see as they get by with cancer. More detailed information about specific interior conditions related to stress can be introduce in the Related Finances and Handpicked References at the end of this fact length.

The body responds to physical, interior, or emotional pressure by releasing stress hormones ( ditto as epinephrine and norepinephrine) that increase blood pressure, speed heart rate, and raise blood sugar reaches. These changes help a person act with junior strength and speed to escape a perceived peril.
Research has shown that people who taste intensive and long- term ( i.e., habitual) stress can have digestive problems, “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors fertility problems, urinary problems, and a weakened pure system. People who feel bred-in-the-bone stress are also more prone to viral infections alike as the flu or common deep freeze and to have headaches, sleep trouble, depression, and anxiety.

Although stress can bring a number of physical health problems, the confirmation that it can bring cancer is weak. Some studies have indicated a link between colored cerebral factors and an increased danger of developing cancer, but others have not.

Apparent links between inner stress and cancer could arise in several ways. For exemplification, people under stress may develop certain bearings, comparable as smoking, gluttonousness, or drinking alcohol, which increase a person’s imminence for cancer. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors Or someone who has a relative with cancer may have a evolved imminence for cancer because of a participated inherited imminence factor, not because of the stress brought by the family member’s conclusion.

People who have cancer may find the physical, emotional, and social goods of the complaint to be stressful. Those who endeavor to manage their stress with hazardous bearings comparable as smoking or drinking alcohol or who get more sedentary may have a poorer quality of life after cancer treatment. In disparity, people who are competent to use effective faring strategies to deal with stress, comparable as relaxation and stress direction hows, have been shown to have lower places of depression, anxiety, and symptoms related to the cancer and its treatment. Notwithstanding, there's no documentation that successful direction of inner stress improves cancer survival.

Witness from experimental studies does suggest that mental stress can affect a neoplasm’s faculty to grow and spread. For specimen, some studies have shown that when mice bearing natural neoplasms were kept confined or sequestered from other mice — conditions that increase stress — their neoplasms were more likely to grow and spread (metastasize). “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors In one set of trials, neoplasms reaped into the mammary fat pads of mice had much refined rates of spread to the lungs and lymph swellings if the mice were chronically stressed than if the mice weren't stressed. Studies in mice and in natural cancer cells grown in the laboratory have start that the stress hormone norepinephrine, part of the body’s fight-or-flight response system, may promote angiogenesis and metastasis.

In another study, women with triplex-negative soul cancer who had been treated with neo-adjuvant chemotherapy were asked about their use of beta blockers, which are specifics that snoop with certain stress hormones, anteriorly and during chemotherapy. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors Women who reported using beta blockers had a better chance of surviving their cancer treatment without a relapse than women who didn't report beta blocker use. There was no difference between the groups, notwithstanding, in terms of overall survival.

Although there's still no strong testament that stress directly affects cancer fruits, some data do suggest that cases can develop a sense of helplessness or despondence when stress becomes perceptible. This response is associated with high rates of death, although the factor for this fruit is unclear. It may be that people who feel helpless or hopeless don't seek treatment when they grow ill, give up unseasonably on or fail to hew to potentially helpful cure, engage in parlous conducts ditto as medicine use, or don't maintain a healthy life, reacting in precocious death.

Some expert consortia recommend that all cancer cases be screened for rack unseasonably in the course of treatment. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors A number also recommender at critical points along the course of care. Health care providers can use a variety of fishnet tools, ditto as a rack scale or questionnaire, to gauge whether cancer cases need help managing their passions or with other practical firms. Cases who show moderate to severe rack are normally bore to good finances, ditto as a clinical health psychologist, social worker, chaplain, or psychiatrist.

Stress is a psychological state of imbalance coupled with biological disorder. Individual experiences
deviation in his biological system which is called potential stress. Potential stress moderated by individual,
organisational and environmental variable leads to actual stress. The variables that convert potential stress
into actual stress are known as stressors. Thus, stressors can be intra- organisational and extra
organisational. Intra-organisational stress arises out of individual, group, and organisational factors. Extra
organisational factors relate to environment of the organisation. The intra organisational factors causing
stress are divided into individual factors and organisational factors. Let us learn them in detail.

1. Intra Organisational Factors

Individual Factors: Individual factors, which cause stress include: personality and individual differences,
family problems, economic problems, life styles and role demands.

i) Personality and individual differences: Individual basic dispositions are the main reason for potential stress. Introversion, extroversion, masculinity, rigidity, locus of control, personal life, demographic differences such as age, health, education and occupation are some of the reasons causing stress in individuals. It is found that type A personality is prone to more stress than type B personality.

Type A personality is characterised by emotion and sensitivity to organisation goals, competitive spirit and achievement oriented behaviour. This leads to frustration even for small deviations from the expectations, thus feeling of more stress. 

Type B personality is typically relaxed, carefree, patient and less serious in achieving objectives. Thus, he never feels stress. Some propositions of personality and individual stress are:
• Age is positively related to stress. When a person grows older, his expectations also go up. If he is unable to find avenues for realising expectations, he feels stress.
• Sound health enables a person to cope up stress better than unsound health.
• Education and health are related positively and negatively. Better education provides an opportunity to understand things in a better manner. Even the level of maturity increases with better education. So better educated persons are less prone to stress. Poorly educated people in relation to the jobs are likely to feel more stress due to the poor adaptability on the jobs.
• The nature of the occupation and stress are related. Certain occupations are inherently stressful than the other occupations. For instance, doctors, lawyers, politicians etc. At the same time occupation also gives enough stress tolerance ability. Politicians are found to posses more stress tolerance ability.
• Strong urge for satisfaction of needs compel people to over work and may lead to stress.
• Greater degree of locus of control leads to stress. A person is less likely to feel stress as he believes that he can exercise control over external factors.
• Self-efficacy and stress are negatively related. Higher degree of self-efficacy elevates motivation levels. Therefore people with greater self-efficacy remain calm and effectively face stressful situation. Perception of capacity to bring changes provides greater ability to withstand stress.
• Another personal disposition related to stress is psychological hardiness. Hardiness is the ability to withstand provocation from others. People with greater psychological hardiness are able to survive and withstand stressful environment. For instance, people who remain calm even at the provocation of others and ignore the esteem are less likely to feel stress.

Individual differences in perception, job experiences, social support, hostility etc., are some of the reasons
that cause stress.
• Perception helps in understanding the environment. Person possessing a positive perception understands reality and appraises the events objectively. Thus, he feels less stress.
• Job experience and stress are negatively related. As one gains experience he develops adaptability to various job and organisational demands. He realises the job expectations. He develops a mechanism to deal with stress situations. Therefore more experienced people remains cool, calm, and ignore stressors than young and inexperienced employees.
• Hostility and aggressive behaviour is positively related to stress. A person who becomes aggressive and
gets quick anger is cynical and does not trust others. He feels more stress than others who are cool and
calm.

ii) Family Problems: Family issues influence the personal life of individuals. Sound marital relationships, marital discipline, early and healthy children may lead to happy personal life. They enjoy the life and become positive in their attitudes. So they do not tend to greater stress. On the other hand, poor marital relationships, nagging wife, family separations, extra marital relationships, disturbing children, poor settlement of family members, aging parents, dual working couple, death of spouse or other close family member are some of the reasons for greater stress in the individuals.

iii) Economic Problems: Economic difficulties are the main cause of stress. Poor management of personal finances, heavy family expenditure, and constant demand for money, poor incoming earning capacity and slow financial growth in the job are some of the economic reasons responsible for greater stress. For instance, an increasing family expenditure, increased expenditure on children education and health create heavy demand for income. This creates greater stress in the individuals.

iv) Life Styles: Life Styles of individuals can cause stress. The following situations of life style cause stress:
• Sedentary life styles cause greater stress.
• Individuals experiencing certain unique situations may be compelled to alter their attitude, emotions and behaviour. These are known as life trauma. Life trauma is potential reason for stress.
• Faster career changes bring more responsibilities to the individuals. Persons occupying higher positions in the younger age are likely to get heart attacks due to greater stress. This is because of inability to adapt to the new carrier responsibilities.

v) Role Demands: Individuals play multiple roles in their personal life and organisations. In their personal life, they play the roles of family head, husband, father, brother and son. In social life they play the roles of club members, informal community group members, members of recreation groups, religious groups and a number of other social groups. Similarly in organisations, employees play the role of superior, subordinate, co-worker, union leader, informal group leaders etc. Incidentally, all these roles are performed simultaneously. Thus, they cause anxiety andemotion. Another potential reason is role conflict. It arises because of poor role perception, role ambiguity, role overload and role overlapping. Role ambiguity and stress are positively related. The greater the role conflict, individual experiences more stress.

Organisational Factors: An organisation is a combination of resources, goals, strategies, and policies. In
order to make people to work, organisations create structure, process and working conditions. In modern
organisations, number of factors create an environment of stress. The changing environmental dynamics,
globalisation, organisational adjustments like mergers and acquisitions lead to stress among employees. In
addition, a number of internal organisational factors cause employee stress. Some of them are poor working conditions, strained labour management relations, disputed resource allocations, co-employee behaviour, organisational design and policies, unpleasant leadership styles of the boss, misunderstandings in organisational communication, bureaucratic controls, improper motivation, job dissatisfaction, and less
attention to merit and seniority. Let us learn the organisational stressors in detail.

i) Working Conditions: Working conditions and stress are inversely related. Employees working with poor working conditions are subject to greater stress. The factors that lead to more stress are crowded work areas, dust, heat, noise, polluted air, strong odour due to toxic chemicals, radiation, poor ventilation, unsafe and dangerous conditions, lack of privacy etc.

ii) Organisational Tasks: Organisational tasks are designed to meet the objectives and goals. Poorly designed tasks lead to greater stress. Task autonomy, task inter-dependency, task demands, task overload are some of the potential reasons for stress in organisations. For instance greater the task interdependence, greater is the coordination required. This requires employees to adjust themselves to coworkers, superiors, and subordinates, irrespective of their willingness. They are expected to communicate, coordinate, exchange views, with other people irrespective of caste, creed, gender, religion and political differences. Lack of adjustment and poor tolerance to others lead to greater degree of stress.

iii) Administrative Policies and Strategies: Employee’s stress is related to certain administrative strategies followed by the organisations. Down sizing, competing pressure, unfair pay structures, rigidity in rules, job rotation and ambiguous policies are some of the reasons for stress in organisations.

iv) Organisational Structure and Design: As pointed out earlier organisational structure is designed to facilitate individual’s interaction in the realisation of organisational goals. Certain aspects of design like specialisation, centralisation, line and staff relationships, span of control, and organisational communication can severely create stress in organisations. For example, wider span of management compels the executive to manage large number of subordinates. This may create greater stress. Similarly, frequent line and staff conflict lead to obstacles in the work performance. Inability to resolve the conflicts lead to stress.

v) Organisation Process and Styles: A number of organisational processes are designed for meeting organisational goals. Communication process, control process, decision making process, promotion process, performance appraisal process, etc. are designed for realising organisational objectives. These processes limit the scope of functioning of employees. Improper design of various organisational processes leads to strained relationships among the employees. They may also cause de-motivation and job dissatisfaction. Consequently, employee feels stress in adapting to the processes.

vi) Organisational Leaderships: Top management is responsible for creation of a sound organisation
climate and culture by appropriate managerial style. The climate provided should be free of tensions, fear, and anxiety. Authoritarian leadership style creates a directive environment in which employees are pressurised to attain targets. They work under impersonal relationships and tight controls. This creates greater work stress to employees. On the other hand, a climate of warm and friendliness, scope for participation in decision making, non financial motivation and flexibility are encouraged under democratic leadership style. This relieves stress in the employees. Therefore, employees working under authoritarian leadership styles experience stress than employees working under democratic leadership style.

vii) Organisational Life Cycle: Every organisation moves through four phases of organisational life cycle. They are birth, growth, maturity and decline. In each of these stages the structure and the design of organisation undergoes frequent changes. In addition, human beings are subject to metamorphosis to adapt to the stages in the life cycle. In this process, employees are subject to job stress. For instance in the initial stages of organisational birth, stress is caused because of ambiguous policies and designs. In the growth stage, employees experience stress due to failure to meet conflicting demands. At the time of decline, stress is caused due to down sizing, retrenchment and loss of financial rewards and changing organisational systems.

viii) Group Dynamics: Groups are omni present in organisations. Groups arise out of inherent desire of human beings and spontaneous reactions of people. In organisations both formal groups and informal groups exist. A formal group exist in the form of committees, informal group exit among different levels of organisation. Groups have a number of functional and dysfunctional consequences. They provide social support and satisfaction, which is helpful in relieving stress. At the same time, they become the source of stress also. Lack of cohesiveness, lack of social support, lack of recognition by the group and incompatible goals cause stress.

Thus a number of organisational factors cause stress in the individuals.

Monday, 31 January 2022

Question No. 4 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 4 Write short notes: 
(a) Indian competitors in the export of electronic goods




(b) Potential of health services in India.


There exists a tremendous opportunity in the Indian healthcare industry. This is clearly borne out by the following:

- The size of the healthcare industry in India is just 5% of  the GDP, as compared to the United States, where this figure stands as high as 17%. In fact, healthcare is the largest industry in the USA.
- A study conducted by KSA Technopak, a leading global consulting firm indicates that in India, on an average, 11% of the annual household income is spent on healthcare . Not only this, 25% of the people believe that this figure is likely to go up.
- Further, the same study indicates that close to 68% of  the healthcare spending is on the day to day healthcare needs alone.
- The healthcare industry in India is expected to cross Rs.1000 billion in  the next three years.
- The Role of Consumerism 
The wave across various sectors in India has led to a more demanding consumer, whose awareness levels have risen significantly in the last few years. The consumer now has greater expectations and demands regarding the quality of healthcare.

This is especially true of the quality of primary healthcare services available in the country today. Given the backdrop of extremely high fragmentation, reliability and accessibility continue to be a distant dream. The consumer's current experience with a host of polyclinics and diagnostic centres, which have little regard for quality, has been disappointing.

Today's consumer is sensitive to both - care and cure - and is hungry for information. And he is willing to dig deeper into his pockets to get that extra reliability, reassurance and convenience.

There is only one logical conclusion to draw from all this. The healthcare industry, which is rightly perceived to be recession-proof, is set for unprecedented growth. And it offers some exciting opportunities in the area of primary and preventive healthcare.

Question No. 3 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 3 ”Garments have emerged as the star-performer in the Indian textile export scenario.” Elaborate.


Garments have emerged as the star-performer in the Indian Textile export scenario by
the sheer magnitude of the achievement recorded by this industry. Look at Table below which
allows India’s exports of readymade garments. The exports have increased from $2583.41 in
1993-94 to $4807.92 in 1999-2000. The garment sector has achieved an impressive export
performance over the years despite stiff international competition. It must also be mentioned that
the Indian garment industry is primarily in the small scale sector with a fairly low capital
investment. Even though the total exports of India in this sector may be far lower than many of its
competitors like Hong Kong, South Korea or Taiwan, the growth rate achieved by this country is
reported to be far higher than most.

Table: Exports of Ready-made Garments
Year                         Exports (US $ Million)
1993-94                     2583.41
1994-95                     3282.83
1995-96                     3681.04
1996-97                     3756.45
1997-98                     3880.85
1998-99                     4363.96
1999-2000                 4807.92

The Indian garment export sector has maintained a pattern of steady growth over the years. A
number of reasons have been mentioned for the escalating exports from this industry. Some of the
factors responsible for the export growth of this sector are recounted below.
1. Rising Labour Costs in Development Markets: Studies conducted by various research
agencies in the past had found that many of the developed markets found it difficult to maintain
their garment manufacturing operations due to rising labour costs. In fact many of these nations
found it more economical and cost-effective to import their requirements of clothing from the
developing countries where there was relative abundance of labour and whose wages were also far
lower.
2. Shift to Technology Intensive Industries: The 1970’s was also the period when many
developed nations shifted their focus to the creation and strengthening of some of the hi-tech
industries like computer hardware and Software, electronics, ship building etc. Certain industries
which were basically labour oriented and pollution prone like textiles, clothing and leather
industry were progressively de-emphasised since these did not basically fit into the economic
profile of many of the developed countries. Developing nations like India stepped in to fill the
vacuum so created.
3. Special appeal to Indian Fabrics: Indian made fabrics created considerable impact on
foreign buyers’, particularly the Western designers by virtue of their rich colours and design
variations. In fact, it was the Indian handloom fabrics which triggered the garment export boom inthe early 1970’s. Two well known handloom fabrics of that time – “Madras checks” and
“Cannanore crepes” captured the imagination of the western designers and clothing made out of
these items became extremely popular in. Europe. Though the phenomena was short lived, it did
reveal to potential exporters in India the opportunities abroad in the garment export trade and they
did capitalise on this discovery during the subsequent years.
4. Swing towards natural fibres: There has been a gradual swing towards natural fibres and
blends thereof as opposed to synthetics (nylons etc.) ‘initially due to the oil crisis and the rising
cost of petro-chemical based items in the mid-1 970’s and later on owing to factors like comfort in
wearing apparel and health/environmental reasons. Cotton apparel derived a definite advantage
from such swings in consumer preferences and Indian exporters also availed of opportunities
thrown open.
5. Ability to cater to small orders: Import orders for garments emanate not only from the
large importers and department stores abroad but also from ethnic shops and small boutiques.
Despite the fact that the individual orders emanating from such sources may be small, collectively
they account for a bulk of the import orders for clothing. The type of orders from these sources
also differ from the larger stores in the fact that they indent for a variety of designs and colour
combinations. The Indian garment sector being small in size and decentralised is extremely
flexible and in an ideal position as compared to many of its competitors, to cater to small orders
for diversified varieties. Most of our competitors who have set up composite clothing units with
assembly line operations find such small orders for varied designs and colour combinations
unavailable.
6. Improved Publicity and Promotional Campaigns: Having realised the potential of
garment export Government of India has also stepped up its publicity and promotional efforts to
popularise Indian made garments among importers and prospective overseas markets. lndia has
been a fairly regular participant in several of the specialised clothing exhibitions abroad.
Organisations like the Apparel Export Promotion Council which has been set up by the
Government to direct exclusive attention to the cause of export promotion of garments and the
Clothing Manufacturers Association have been holding periodic buyer – seller meets in the
important production centres and conclusive business deals have been arrived at in such venues.
7. International Travel and Personal Contacts: The relative ease and volume of
international travel in the recent years have also bridged the North-South divide and brought
prospective sellers and buyers closer together. There is also a greater realisation of Indian
capabilities in certain fabric designs and variety of clothing, especially summer wear. It has also
been pointed out that the garment export sector rose to prominence due to private initiative i.e,,
the direct inter-face between the Indian entrepreneur and the overseas importer. Government
assistance and incentive came later, once the industry established itself to some extent
8. Wage cost push in competing countries: In the early nineties and immediately thereafter
the rising labour costs in some of the competing countries like Hong Kong, Taiwan and South
Korea made exports of certain labour intensive goods like clothing unattractive for its exporters.
Some of these countries had also shifted emphasis to technology intensive industries like
electronics and automobiles and the accompanying spurt in their economy and exports had
resulted in a sharp appreciation of their currencies. Indian exports of clothing therefore became
relatively more competitive
It is evident from the preceding facts that there is no single factor but a cumulative set of factors
which have led to the boom trade in garments. However, when we consider the fact that India as
yet, accounts for only around 3% of the international trade in garments, it points to some inherent
weaknesses in the industry as also the scope for expanding our share in international trade of such
items. The reasons for India’s small share in the international trade in garments is not far to seek.
World trade in clothing is largely in terms of polyester /cotton blends whereas India’s exports isvirtually confined to cotton based clothing. Secondly, the export sector of the garment industry in
India is dominated by merchant-exporters and small size units who have shown not much of an
inclination to diversify their product range. Most of the competing nations have established large
scale garment units with assembly line production facilities (i.e. starting from production of
fabrics, fabrication of garments, final processing and merchandising of garments) with a capacity
to manufacture and process a wide range of garments. Thirdly, the cut throat competition from the
power loom sector and the fear of imposition of additional quotas seem to have acted as a
deterrent for many of the large scale units particularly in the Indian mill sector from entering the
export garment trade.
The share of some of the important exporting countries of garments like Hong Kong , Korea and
Taipei (Taiwan) have shown a progressive decline over the years, while share of some of the new
suppliers like China, Turkey, Thailand and Indonesia have registered a definite growth. China’s
performance has been the most impressive having risen from a modest 4% share of the world
trade in garments to a significant 15% in 1996. China’s performance may be due to the number of
foreign investments that it has been able to attract for its various industrial sectors, including
textiles and garments, particularly from the overseas Chinese. It has also apparently been able to
modernise its textile sector at a much faster pace than India and this coupled with the fact that it
also enjoys the benefits of cheap labour has provided that country with a distinct competitive edge
in certain labour-intensive sectors.
Indian garments are currently exported to all parts of the world. However, the developed Markets
notably the USA and the European Union countries account for the major proportion of our
clothing exports. Indian exports are more or less in conformity with the international import trade
in this sector since the developed countries account for the bulk of the trade in garments.
Look at following Table which shows major markets for India’s exports of readymade garments.
USA is the leading market for India’s readymade garments followed by UAE, UK, France and
Germany. They accounted for 63% of India’s total export of readymade garments

Table: Major Markets for India’s Exports of Readymade Garments

Countries                                            Year

                                    1996-97         1997-98         1998-99         1999-2000
USA                             1273.49         1297.59         1426.06            1491.92
UAE                             133.56            173.81         403.98                 482.41
UK                                 356.27            311.12          291.76             405.92
France                         263.98             287.30             312.03             347.88
Germany                     429.27                380.360         393.33             321.84



Question No. 2 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 2 How has the new tariff policy of the government of India helped improving competitiveness in the industries? Describe its salient features.



                                        Source: Egyankosh 


                        

Question No. 1 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 1 What do you mean by WTO? What is its role in in world trade? Describe India’s efforts for integrating itself with the world trade.

What Is the World Trade Organization (WTO)?
Created in 1995, the World Trade Organization (WTO) is an international institution that oversees the global trade rules among nations. It superseded the 1947 General Agreement on Tariffs and Trade (GATT) created in the wake of World War II.
The WTO is based on agreements signed by the majority of the world’s trading nations. The main function of the organization is to help producers of goods and services, as well as exporters and importers, protect and manage their businesses. As of 2021, the WTO has 164 member countries, with Liberia and Afghanistan the most recent members, having joined in July 2016, and 25 “observer” countries and governments.
The WTO is essentially an alternative dispute or mediation entity that upholds the international rules of trade among nations. The organization provides a platform that allows member governments to negotiate and resolve trade issues with other members. The WTO’s main focus is to provide open lines of communication concerning trade among its members.
For example, the WTO has lowered trade barriers and increased trade among member countries. On the other hand, it has also maintained trade barriers when it makes sense to do so in the global context. Therefore, the WTO attempts to provide negotiation mediation that benefits the global economy.
Once negotiations are complete and an agreement is in place, the WTO then offers to interpret that agreement in case of a future dispute. All WTO agreements include a settlement process, whereby the organization legally conducts neutral conflict resolution.
On Feb. 15, 2021, the WTO’s General Council selected two-time Nigerian finance minister Ngozi Okonjo-Iweala as its director-general. She is the first woman and the first African to be selected for the position. She took office on March 1, 2021, and her term will end in August 2025.
No negotiation, mediation, or resolution would be possible without the foundational WTO agreements. These agreements set the legal ground rules for international commerce that the WTO oversees. They bind a country’s government to a set of constraints that must be observed when setting future trade policies. These agreements protect producers, importers, and exporters while encouraging world governments to meet specific social and environmental standards.

Role of WTO

1. Progressive opening and regulation of markets

The WTO's mission is to open markets gradually while ensuring that rules are respected.  The origin of the organization dates back to the end of World War II when the idea of peaceful cooperation among peoples was emerging. In 1947, a number of countries decided to open up their markets on the basis of common principles, and founded the WTO's predecessor, the General Agreement on Tariffs and Trade (GATT). In the current round of trade negotiations, the WTO is seeking to make further advances in equitable trade.

2. The WTO acts as conductor, tribunal, monitor and trainer

a. Orchestra conductor

International trade is governed by very precise rules developed by the WTO's members. Countries must apply these rules when trading with one another. The WTO acts as the orchestra conductor, ensuring that rules are respected. The WTO was founded in 1995, but its origins date back to 1947 and the creation of the GATT. Since then, WTO members have adapted these rules to keep up with new developments. For example, services have developed considerably since the 1980s, and have now become one of the most important economic sectors. As a result, WTO members established rules governing international trade in services. Adapting or changing the principles of international trade means reaching consensus among WTO members through a round of negotiations. The latest round   the ninth since 1947   was launched in 2001

b. Tribunal

One of the main roles of the WTO is to settle disputes between its members. The WTO plays the role of trade tribunal, where members may file complaints against other members who fail to abide by the principles of international trade. There are three stages to dispute settlement. To begin with, the disputing countries try to settle their differences by themselves. If that fails, the case is decided by a panel made up of three experts, which issues a ruling. That ruling may be appealed. Once a definitive ruling has been issued, the losing party must comply. If it does not, it is liable to sanctions. Since 1995, over 400 complaints have been filed by WTO members.

c. Monitor

The WTO regularly reviews the trade policies of its members. These reviews assess whether WTO members are abiding by WTO rules and measure the impact of their domestic policies on international trade. The purpose of these reviews is not so much to solve problems as to prevent them from occurring in the first place.

d. Trainer

The WTO provides training programmes for government officials from developing countries   for example, ministry staff or customs officials. The WTO currently spends about 35 million Swiss francs annually on these programmes.  Africa is the main beneficiary, followed by Asia and Latin America. In 2011, approximately 26 per cent of training activities took place in Africa.

India's Integration with WTO

The government on Tuesday said that India’s permanent mission to the World Trade Organization, the Centre for Trade and Investment Law (CTIL) of the Indian Institute of Foreign Trade, and the Centre for Trade and Economic Integration of The Graduate Institute, Geneva have signed a tripartite Memorandum of Understanding to begin collaboration towards research and capacity-building in the field of international trade law and policy.

The MoU seeks to provide academic and research opportunities to the professional staff of CTIL and the officials of the Indian government in the field of international trade and investment law, and would establish collaboration channels between CTIL and CTEI while the mission will play a facilitative role for activities.

“For the next three years, various capacity-building programmes and activities will be carried out under the MoU to enhance the understanding of the government officials and CTIL’s research staff and academics on contemporary issues of international trade and build support for India’s positions on international trade and investment law,” the commerce and industry ministry said in a statement.

The MoU aims to enhance India’s capacity in formulating its foreign trade policy and contribute towards ensuring stability in the global trade regime.

Besides exchange of faculties and staff for study, research or teaching purposes, there will also be an internship programme for CTEI students at CTIL and submission of India focused projects to CTIL/CTEI TradeLab, a clinical legal education project on trade and investment law.


All Questions - MCO-021 - MANAGERIAL ECONOMICS - Masters of Commerce (Mcom) - First Semester 2024

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