Trade and Trade Policy

NIGERIA AND THE WORLD TRADE ORGANISATION: CHALLENGES AND PROSPECTS I. INTRODUCTION: The purpose of this paper is to provide a factual information on Nigerias participation in the World Trade Organisation (WTO) with a view to draw the attention of participants to some important issues relating to Nigerias participation in the WTO. To that end, the paper highlights the background to Nigerias participation in the WTO, the challenges and prospects of Nigerias membership and engagement in the WTO process. IIBACKGROUND 2.1 The basic economic argument for international trade has remained same(predicate) since the time of Smith and Ricardo, when the theory of comparative cost gain was developed. The theory states that once each country specializes in the merchandise of the good that it has a comparative cost advantage all over other countries, a more cost-effective utilisation of the meagre resources of the world will result. An exchange of these efficiently produced output by dint of trade will thereby lead to an increased step of living in the countries involved. 2.2 In order to maximize the efficient allocation of resources in production, the price mechanism must be operated as freely as possible to ensure that suitable gains from trade occur.

This fundamental economic maxim underlies the principal objectives of the WTO of: - rise the standards of living - ensuring unspoiled employment - expanding production and trade - allowing optimal use of the worlds resources [Preamble to the Marrakesh Agreement establishing the WTO] 2.3 There is however commercialise failure in the real world where the price system fails to account for the veritable value of goods and services being traded for reasons that include the diversion betwixt private and social costs as well as the existence of monopoly and oligopoly powers. In these cases, government intervention in the market can be accommodated in a bid to besmirch the costs of the failure of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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