22. World Trade Organizations

The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The WTO is specialized agency and would address not only trade barriers but other issues indirectly related to trade, including employment, investment, restrictive business practices, and commodity agreements.

European Free Trade Association

Established in 1960, Great Britain. Members: Iceland, Liechtenstein, Norway and Switzerland. The basis is the free trade zone in mutual trade abolished customs duties and restrictions, but no single external tariff. Each country conducts an independent trade policy toward third countries, and goods from these countries can not freely move in the EFTA.

United Nations Conference on Trade and Development

Established to protect developing countries. Decisions are advisory in nature. Features:

1.promote international trade

2.developing principles of international trade

3.creating a legal framework for international trade

4. Coordination of activities of transnational companies

International Trade Center

Helps developing countries in addressing the expansion of exports, provides information and advices on markets and marketing methods exports, helps in creating export services and training of the workers.

23. Taking into account cultural differences when entering new market (Врахування культурних відмінностей при входженні на нові ринки)

When working in the global commercial environment, knowledge of the impact of cultural differences is one of the keys to international business success. Regardless of the sector in which you operate – finance, technology, or computers and consumer electronics –global cultural differences will directly impact on you and the profitability of your business. Improving levels of cultural awareness can help companies build international competencies and enable individuals to become more globally sensitive.

Cultural differences are one of the key components companies must consider when expanding abroad. Culture is made up of attitudes, beliefs, and values that are shared by a certain group of people. These behavioral differences greatly affect how businesses operate as companies need to be aware of many aspects within a particular culture. For example, different social class systems can change what types of people the company should use in their marketing campaigns in order to reach their target market. There are several cultural factors that companies should consider when conducting business in a foreign society:

• Performance Orientation

• Gender Attitudes

• Age Attitudes

• Family Attitudes

• Occupation Perception

Companies need to be aware of cultural differences both in how they market their product and in hiring their employees. Cultural differences can affect employee performance due to differences in attitudes such as motivation, expectation, and assertiveness. Generally, people of dissimilar cultures are motivated differently. Some are motivated by material goods whereas others may be motivated by leisure time. This is an important factor in learning how to get the most out of a group of employees who are ethnically diverse. In urban Chinese cities many laborers that have migrated from rural areas are more motivated by gift cards to McDonalds than by overtime or pay raises, this is because these migrant workers must send their money to the families in the country-side.