The World Trade Organization is a global organization that deals with international trade. It establishes rules and policies that govern how trade should be carried out in the international market (McMichael, 17). He is involved in negotiating agreements that cross multiple nations. The main function of this body is to ensure that the manufacturer gets a large market across borders to sell his goods and services and the buyer (customers) access the international market without many barriers. The body also ensures that service companies dealing with exports and imports carry out their tasks in a professional manner so that there are no delays or established rules are not violated. The WTO was established on January 1, 1995 to deal with global market liberalization. This organization replaced an older organization that was formed immediately after World War II to address the economic challenges the world was facing in that post-war period. These challenges are; unemployment, unfair trade, investment challenges and disputes between different nations. This organization was called the International Trade Organization. It was formed together with other global development agencies, namely the International Monetary Fund and the World Bank. These two, i.e. the World Bank and the International Monetary Fund, focused on the development agenda and the ITO on trade. However, the ITO did not gain approval from some nations enough to become a global organization under the United Nations that dealt exclusively with trade (McMichael, 22). Due to a lack of global appeal and acceptance, the ITO failed and the General Agreement on Tariffs and Trade (GATT) replaced it. This is because the GATT appears to be an easy way to gain global interest and could address current events without manipulation by any... middle of paper... unplayable loans. On the other hand, as committed and determined as the World Trade Organization has been to form the central nervous system of trade for its member countries through policies, it has been extremely difficult as national interests and policies prevail over organizations. This subsequently hindered the organization's pursuit of equitable development among member states. The concept of foreign direct investment has not been fully exploited due to the complexity found within it. Host countries were considered to be the main beneficiaries of foreign direct investment at the expense of the investor's country. Profits are reinvested in the host country's economy as investors pay licensing fees and other charges to host country authorities with little to return to their home countries. This has greatly undermined the concept of FDI (Helpman, 54).