Conflict Theory
Conflict theory seems perhaps better suited to explain thecontradictions in world trade and, even more profound, the differences thatnormally appear between developed and developing countries, especially inWorld Trade Organizations Ministerial Conferences, but also in general The tools and general trends that world trade operates with areliberalization and protectionism (protective measures). High import taxesand subsidies are among the most common protective measures and these havethe role of protecting national producers against lower priced, morecompetitive products that may enter the country and may force the national The industrialized countries generally aim at imposing global lowerimport taxes on manufactured goods. This would ensure them better exportcapabilities to third world countries, given the fact that manufacturedgoods from developed countries are generally more competitive, because ofhigher prices. So, the only chance for national manufactured goods fromthird world countries would be a price advantage over Western goods. However, the price advantage is driven by the price level at which
An even better example of interstates functionalism are the regionalorganizations, mainly the European Union, the highest level of integrationthat has been reached so far. Perhaps we may have the impression of an influential WTO that tends toimpose a certain solidarity between member states in an attempt to increaseglobal revenues and wealth for all actors involved, may they be developingor developed countries. Similar toa situation in game theory, both sides attempted to negotiate profitableconditions, while, on the other hand, not giving up too many privileges oftheir own. The conflict situation manifesting itself in world trade means thateach participant to global exchanges will be aiming to maximize profits fornational producers, that is, to have the best trade conditions in relationwith it partners. Admitting that the interests in global trade differ between the twocategories of countries, on one side we have a conflict situation, whereeach country aims to improve and maximize its profits by minimizing traderestrictions. As the United States and the European Union both had strongfarmer lobby groups that disagreed to lower import taxes (on the basis ofwhat I have already discussed here above), no compromise could be reached. Over these two different sides of the problem conflict appearand conflict theory best explains this. As such, a functionalistperception would indicate that the WTO is the best institution to ensure anoverall economic growth, profitable both for developing and developedcountries in the long run, through adopted measures and joint negotiations. e lower the import taxes, the lower the price thatWestern goods will be commercialized at and, as such, the lower the priceadvantage for manufactured goods n developing countries. The agricultural products are somewhat in a different situation. Indeed, we are facing a situation where "society and cultureinfluences individual behavior"[1] and where "each individual participantand its groups struggle to maximize their benefits"[2]. Retaliation, a measure where acountry imposes trade restrictions as a response to measures taken byanother country (raising import taxes in response, for example), iscommonly used and is an expression of related conflict. As such, developed countries use either import taxes orexport subsidies that will allow for lower price for the producers at whichthey will sell and will thus protect national farmers by ensuring they stayin business.
Common topics in this essay:
European Union,
Ministerial Conferences,
Trade Organization,
Cancun Doha,
United Retaliation,
,
Brazil India,
Cancun Round,
import taxes,
world trade,
european union,
global trade,
developing countries,
Theory Internet,
North- South,
lower import taxes,
developed countries,
lower import,
trade restrictions,
conflict theory,
conflict situation,
developed developing countries,
united european union,
taxes trade restrictions,
import taxes trade,
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Acceptance Essays
