Business and Management about WTO Dissertation

Business and Management about WTO - Dissertation Example Concentration Index 56 5. 3.4. Diversification index 57 5.3.5. Trade Composition 59 5.3.6. Trade Balance per Product 64 5.3.7. Trade Performance and Multinational Presence in Vietnam 66 5.3.8. Factor endowment and Composition of trade 70 Conclusions 79 References 80 Appendix I 83 1. Introduction It is essential to find out the probable outcomes of the liberalization of trade on macroeconomic variables for various policy reasons. The most significant of which is that the liberalization may influence the direction, the scope as well as the magnitude that may be used to smooth out external shocks and thereby, stabilize the business cycles through the monetary and fiscal policies. Liberalization has the potential of making the countries more prone towards the international price shocks and thus, it may also give rise to the risk exposure. Liberalization may further affect the terms of trade of a country as well as its prices and competitiveness, which may all result into broader implicat ions for poverty and employment. This study will investigate some of the potential macroeconomic impacts on the domestic market of a country resulting from its accession to the WTO, in particular the case of Vietnam’s accession to the WTO will be discussed that will enable us to determine that how it may assist our organization to enter new markets. This study will concentrate on the period from 1995 when Vietnam commenced to undertake its negotiations for joining the WTO, up to the date of 31 December 2007 that is one year after its accession to the WTO. Since the mid of 1980s, Vietnam has boarded on to the economic reforms and its accession to the WTO has been caused by its drive for bringing economic reforms to its economy and for its better integration in to the trading system of the world. The membership of WTO-World Trade Organization and the participation in RTAs (regional trade agreements) pose significant challenges for the domestic firms along with bringing several benefits and opportunities to them. Numerous social concerns related to the trade policy reform and liberalization arises with the implementation of the WTO commitments. The domestic businesses might face several challenges while endeavoring to adjust to the pressure of the rising competition in the market that arises from the commitments undertaken by the government of the state in the process of WTO accession. Having done in various countries, the implementation of WTO obligations has a significant impact over the economy and the society of the host country. Thus, we will study the accession of Vietnam’s accession of WTO in order to assess the impact of WTO on firms and thereby, determine how it may help our organization in entering new markets. For this purpose, we will investigate the role of WTO in the sustainable and equitable economic development of a country. The report will discuss the impact of trade and institutional reforms through the WTO accession by studying an d learning from the case-study of Vietnam. We will learn, in this report, to capitalize over advantages and minimize the potential negative impacts that emerge from the implementation process by working out the measures as well as through action oriented recommendations. In specific, the study aims to investigate the following subjects: 1. the impact of WTO over the macroeconomic policies, the public sector as well as the public revenue, in particular; 2. the impact of WT