Pros and Cons of World Trade Organizations

World trade organizations are intergovernmental organizations that are concerned with the regulation of international trade among the nations. It deals with the rules of trade between nations. The agreements have to be negotiated and signed by the nations.

They administer the trade agreements, provide forums on trade negotiations, handle disputes among the trading nations, monitor trade policies among the nations and provide technical assistance in case it is needed by offering training to its members.

Pros and Cons of World Trade Organizations

Pros of World Trade Organizations

  1. They offer goods at a low price to consumers

When there are trade organizations, they offer goods to consumers at low prices as they avoid the instances whereby the consumers are exploited.

  1. There are economies of scale

Where there are the organizations, the trade barriers will be removed and this will enhance the member countries to trade freely as a result of this there will be the production of goods in large quantities hence utilizing the economies of scale.

  1. Improvement in economy

When there is free trade, the country will be able to produce goods that have a lower opportunity cost and this will make them invest in other areas hence improving the economies of the member countries.

  1. High competition

Free trade will encourage high competition which will result in the production of goods of high quality hence the consumers will benefit from high-quality goods.

  1. A constant supply of good

The countries will be able to supply goods constantly as they will have a ready markets for the goods hence the consumers will be able to get good throughout.

  1. Availability of a variety of goods

There will be a variety of good in the market and this will make the consumers choose from the varieties as there will be no barriers, the countries will be free to trade in the member countries.

  1. Promotion of peace among the countries

There will be peace among the nations as will trade together hence no political violence among the nations.

  1. Easy to handle the dispute

As the traders meet now and then, it will be easier for the dispute to be handled as they will talk and come to an agreement.

  1. Rules make life easier

When there are rules, people will work as per the rules and this will make life easier as the will be no problems to be handled among the nations.

  1. Job opportunities

There will be plenty of job opportunities as people will be able to move from one country to another freely in search of jobs.

  1. Raises income

There will be a lot of income for the people who will be employed in other nations hence their standards of life will improve.

Cons of World Trade Organizations

  1. The rules favor multinationals

The rules only favor developed countries in that the developing countries will be given the second priority whereby the best products will be given to the developed countries.


  1. Protectionist tariffs

This only benefits richer nations such as the USA and this makes younger nations such as developing countries suffer from the organizations.

  1. Difficult in progressing

As the rules are set by the member countries, it becomes a problem in case the country has to change as the decision will be difficult to be made hence not easily progressing.

  1. Competition from other organizations

World trade organizations are faced with competitions from other organizations hence most countries are opting to leave the organization.

  1. Small industries may not develop

As there will be free trade, the upcoming industries will be looked down upon as the member countries will only concentrate on the industries that are already developed.

  1. The rules favor developed countries

The trade rules are unfavorable to the developing countries. Many developed countries went through a period of tariff protection and this made them protect the emerging industries. This made them have a lot of industries hence the rule does not affect their industries as they are already developed.

  1. Strong defense on trade-related intellectual property

This has made the countries implement patent and copyrights that have made the developed countries excel in areas such as lifesaving drugs hence the developing countries entirely depend on the developed countries as they cannot afford the services.

  1. Human rights are neglected

Human rights will be neglected and this will make other people suffer in the hands of others.

  1. Destruction of the environment

The environment will be destructed in that people will be moving from one place to go and settle in another and this will lead to clearing of the forests hence destroying the environment.


Many countries have joined the world trade organizations but they end up leaving especially the developing countries as they suffer in the hands of developed countries.


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