Grade 8 Multinational Company and World Trade Organization

Multinational Companies (MNCs)
Multinational companies are those companies whose management, ownership and control are spread in more than one countries. they produce and distribute goods and services in all these countries where they operate. some of the major MNCs are:
1. Unilever Nepal
2. Bottlers Nepal (CocaCola)
3. Standard Charted Bank
4. Samsung
5. Toyota

Characteristics of Multinational Company
1. MNCs use advanced technology to their activities.
2. MNCs are international in operation.
3. MNCs have huge assets and high turnover.
4. MNCs are run by very competent and capable individuals.
5. MNCs have many branches in many countries but the main control will remain with the head office in its country of origin. 

World Trade Organization (WTO)
World Trade Organization (WTO) is a global organization that deals with rules of trade between member nation. it was established on 1st January 1995 AD in Geneva, Switzerland.Today WTO has more than 153 members. Nepal got its membership in 23rd April, 2004 as its 147th member.

Organizational Structure of WTO
 Copy the figure from book.

Principles of WTO
1. Non Discrimination: It focuses on treating equally to the goods and services produced inside and outside country.
2. Enforceable commitment: The commitment made by nation to the WTO must be fulfilled.
3. Encouragement of development and economic reforms: Government of WTO member country will play a significant role in carrying out development and economic improvement inside the country.
4. Promotion of fair competition: It focuses on developing competition among the organizations all over the world in a fair way.
5. Transparency: Every activities related to trade and commerce will be revealed to every one.

Functions of WTO
1. It facilitates the operation and implementation of the WTO agreements.
2. It provides a forum for negotiation between member nations.
3. It works on settling the dispute among member nations,
4. It works in creating a cooperative environment along with global economy based organization.
5. It aids to member nation in their economic reforms.
6. It provides various kinds of training and technical assistance for developing countries.

Benefits to Nepal as a Member of WTO
1. Nepal can have access to international capital, technology, market, experience, etc.
2. WTO helps in making the trade system of country smooth and less complex.
3. With easy access to goods and services produced all over the world, Nepalese customers are provided with an array of choices.
4. A quality goods and services made in Nepal can compete all over the world.
5. WTO creates more jobs opportunity inside and outside country.