Introduction

I attempted to answer our final examination by choosing question number 1, 2,4 and 5. In question number 1 I have tried to explain my countries general overview first and then the current trade status, in question number 2 I answered the question How do you view the relationship between WTO and RTAs? & Do you think RTAs helpful or harmful for the development of WTO? Why? Separately, I also tried to answer # 4 what is outsourcing? And how the developing countries take advantage of outsourcing? Finally I explained my perception about Chinese undervalued exchange rate. I used different web sites and other secondary resources to answer all these questions.

Nowadays, the WTO has met lots of disruptions, for example the abortion of Seattle Summit in 1999, the failures of Cancun ministerial conference in 2003 and Hong Kong ministerial conference in 2005. Compared with the defeats of WTO, regional trade liberalization developed very fast, kinds of RTAs proliferated in the last two decades. How do you view the relationship between WTO and RTAs? Do you think RTAs helpful or harmful for the development of WTO? Why? (20 points)

How do you view the relationship between WTO and RTAs?

In my view RTAs and the WTO share the common objective of trade liberalization, the pursuance of similar objectives but according to different approaches creates inevitably some tension in this relationship. Regional trading arrangements are pursued for a variety of reasons. A motivation of virtually every regional trading arrangement has been the prospect of enhanced economic growth. An expanded regional market can allow economies of large-scale production foster specialization and learning by doing. And attract foreign investment. Regional initiatives can also foster a Varity of non economic objectives. So the proliferation of RTAs should not be threat for the