Various agencies that have great impact on world business operate ...

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Various agencies that have great impact on world business operate under the United Nations. Name these organizations and describe the purpose of each.

Question 2

Explain what the General Agreement on Tariffs and Trade (GATT) is and give pro and con arguments concerning this agreement.

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Answer to Question 1

The World Bank: its purpose is to end poverty by encouraging development; it loans money to the poorest countries on favorable terms.
The International Monetary Fund: its purpose is to foster worldwide economic growth and financial stability.

The World Intellectual Property Organization: its mission is to promote the protection of intellectual property--patents, copyrights, trademarks, and industrial design.

The UN Commission on International Trade Law: it aims to harmonize international business law by proposing model legislation on such topics as international payments and e-commerce; was responsible for putting forth the UN Convention for the International Sale of Goods (CISG) and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).

Answer to Question 2

GATT refers to the General Agreement on Tariffs and Trade. The general purpose of GATT is to eliminate trade barriers between signatory countries and to bolster commerce.


Proponents of GATT claim that the United States will be a primary beneficiary since this country has imposed lower duties than most other countries. Accordingly, the U.S. will be able to compete on a more level footing with foreign competitors. The result will be a great increase in world trade and greater income for this country.



Opponents of GATT argue that the United States will lose millions of jobs since labor-intensive goods will be made via exploited labor in foreign countries. Given the low cost of production, American companies will not be able to compete. Additionally, opponents claim that domestic job losses will be in low-end employment, so those put out of work are the ones least able to find alternative employment.