Regulation of International Business Behavior

Before you read

Discuss this question:

What do you know about international business?

Now read the text. What does it say about the question above?

Nations also have sought to standardize trade practices through various international organizations. United Nations agencies such as the World Health Organization have worked with the pharmaceutical industry to create data bases on the side effects of drug product characteristics, establish quality standards, and resolve conflicting manufacturing and marketing practices that might harm the public. Elaborate processes of consultation between leaders of business, governmental, and nongovernmental organizations (e.g., consumer groups) are required to make such changes because of the vast number of stakeholders involved. The World Health Organization’s international marketing code for infant formula products, for example, required nearly three years of meetings and consultations before a suitable code was ready for adoption by national governments.

National governments sometimes create special organizations to keep the discussions moving forward. For example, the General Agreement on Tariffs and Trade (GATT) is a set of international agreements among nations on acceptable trade practices. Periodically, nations agree to another “round” of negotiations to be hosted in a particular nation. In the early 1990s, the “Uruguay Round” of talks focused on such issues as government subsidies to agriculture that prevent fair competition from occurring Lengthy and complex negotiations produced a new international body – the World Trade Organization (WTO) – to enforce the new international trade laws.

Nations work together to establish standards for the use of resources not owned by any nation. Multilateral international agreements govern ocean fishing, the protection of sea mammals such as dolphins and whales, the protection of the ozone layer of the earth’s atmosphere, and the dumping of hazardous chemical wastes in oceans. In each case national governments recognize the need to address a problem that cannot be solved through the actions of one nation alone. The result is a framework of international agreements, standards, and understanding that attempts to harmonize business activity and the public interest.

Reading tasks

A. Read the text in more detail and answer the following questions:

1. Which industry was involved in creating data bases on side effects of drug products?

2. Why were many consultations required to make changes in trade practices?

3. What is GATT?

4. What issues were the talks in 1990s focused on?

5. What was the WTO formed for?

6. What do international agreements govern?

B. Which of the following statements are true according to the article?

1. Various international organizations have standardized trade practices.

2. World Health Organization has created data bases on the effects of drugs.

3. It took more than three years before a suitable code for instant formula products was ready.

4. GATT is a set of international agreements on acceptable trade practices.

5. WTO was formed to enforce the new international trade laws.

Vocabulary tasks

A. Complete the following:

1. WTO is _________________________.

2. GATT is ________________________.

3. UN is __________________________.

4. WHO is ________________________.

B. Word families

C. Match the verbs and nouns as they are used in the text:

Discussion

Speak about international business.

Unit 14

Date: 2016-04-22; view: 1839