What political and economic factors affect the WTO and the international political economy

Political and Economic Factors That Affect the WTO And the International Political Economy
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Political and Economic Factors That Affect the WTO And the International Political Economy
The state of international trade and the world's political economy is dependent on several factors. Mostly, the factors that influence world trade are economical and political. The global political economy is also reliant on these factors. However, unlike international trade, political economy is overly dependent upon the choices the governments make. In the case of political economy, there often arise conflicts between different economic agents. These conflicts can usually only be resolved through the intervention of the government. In this research paper, the author seeks to discuss the political and economic factors that influence the World Trade Organization (WTO) and the international political economy. For purposes of this research, the independent variables are the economic and political factors. The dependent variables are the WTO and the global political economy.
One of the main economic factors affecting the WTO is investments. Investment is the accumulation of capital to use it for a specific business or developmental activities. At the national level, increased investment in the country's infrastructure increases its chances of participating globally (Trommer, 2017). For instance, if a state invests in transport, it reduces the country's trade costs significantly, thereby increasing that country's supply capacity. Such investment leads to the emergence of new players at the international stage. Another factor that affects the WTO is technology. In the modern-day economy, the technological difference between countries determines how well one country performs in trade and income levels compared to another country (Trommer, 2017). Technology has played an essential role in trade growth in certain countries such as Singapore and Turkey. These two countries were still developing countries in the twentieth century. However, through the use of technological breakthroughs, they have transformed their countries into significant trade hubs. Most importantly, they have become key players in international trade. Natural resources are one of the main economic factors affecting the political, financial state of the world. There are always arguments regarding the exploitation of individual countries for their natural resources (Bauerle et al., 2017). For instance, the Democratic Republic of Congo (DRC) has, to this date, never fully exploited its primary natural resource, gold. Political compromises have been made by major players at the international level that have left citizens of the DRC with nothing to claim out of their leading natural resource. Yet, those tha...