hello what are the advantanges and disadvantages of the WTO formally the GATT

The WTO is a body designed to promote free trade through organising trade negiotiations and act as an independent arbiter in settling trade disputes.

To some extent the WTO has been successful in promoting greater free trade.

Free trade has many advantages. such as:

1. Lower prices
2. greater competitiveness
3. increased growth

• See: Advantages of Free Trade

However, the WTO has often been criticised for ignoring the plight of the developing world. It is argued the benefits of free trade accrue mostly to the developed world. In fact free trade has many disadvantages

• Disadvantages of Free Trade

In response to this the WTO may say that free trade has been an important engine of growth for developing countries in Asia. Although there may be some short term pain, it is worth it in the long run.

• WTO
• WTO at Make Poverty HIstory
  

Labels: trade

The Current Account of the balance of payments measures:

1. Trade in Goods
2. Trade in Services (insurance, services, banking e.t.c
3. Investment incomes
4. Foreign aid

The trade deficit is pretty much the same as the current account. It measures the trade in goods and services parts 1 and 2

To create confusion Sometimes people refer to the "trade in goods deficit" which is just of physical goods

see: Trade Deficit at ONS
the ONS split the trade deficit into 2 components services and goods. However, in practical terms when people talk of a trade deficit they mean the current account deficit.

Of course a current account deficit requires a surplus on the financial / capital account, but this is rarely mentioned or understood. e.g. Record US Trade Deficit

• Some reasons for a trade deficit (current account deficit)
• How to Reduce a current account deficit
  

Labels: trade