1.Introduction. This Report Addresses Different Types Of

1. Introduction This report addresses different types of trade used internationally. It will discuss trade agreements e.g. NAFTA, TPP, and the effect they have had on individual countries. It will also focus on the WTO and their role in international trade. There has been significant secondary research in order to write this report such as reading articles, blogs and speeches. 2. Types of trade There are two types of trade; invisible and visible. Invisible trade is when a business transaction occurs between two countries without exchanging palpable goods for example, consulting, shipping services and intellectual property. These services maintain a value and can be exchanged for tangible goods. Invisible trade represents an increasing†¦show more content†¦They also include individual country commitments to lower customs tariffs and several other trade barriers, and ensure service markets remain open. Their aim is to help producers of goods and services, exporters and importers, administer and expand their business with lower tariffs and obstacles. One of the major functions of the WTO is implementing and monitoring of trade. The WTO agreements obligate governments to ensure trade policies are transparent by updating them about laws and measures currently or soon to be in force. They also set rules through trade negotiations to maintain this transparency. The Doha round is the latest one beginning in 2001 discussing areas such as services, agriculture and intellectual property. Another function is dispute settlements. Following a certain procedure for resolving trade issues under the Dispute Settlement Understanding (DSU) is vital in enforcing rules to ensure trade flows smoothly. Since 1995, over 400 complaints have been created by WTO members. Building trade capacity is also one of the WTO’s roles. Their agreements contain special provisions for developing countries, this includes extended time periods to implement agreements, measures to increase trading opportunities, and support to help build their trade capacity. Although the WTO aims to support all members, they have been criticised of only benefitting developed countries. 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