If the letters WTO make you blurt out other short clusters that begin with “W” like Who? and What?, you should probably take some time to learn at least the basics about the World Trade Organization. That’s because regardless of your political views—whether you think it’s the most progressive piece of foreign policy since the Marshall Plan, or that it’s the dreaded end to American isolationism—it helps to know a little something about the WTO before stepping on to B-school campus.
We recommend bulking up your MBA IQ in this and other ways. We therefore recommend the book MBA IQ, which offers highly compressed summaries of many key topics you’ll encounter in business school.
The book is written by Devi Vallabhaneni, an HBS grad and the President & CEO of the Association of Professionals in Business Management.
Here’s a sample:
#10: World Trade Organization
Trade liberalization refers to the efforts of governments to reduce tariffs and nontariff barriers to trade.
In 1995, the Geneva-based World Trade Organization (WTO) was created to administer the rules and to assist in settling trade disputes between its member nations. All WTO nations are entitled to normal trade relations with one another. This is referred to as Most Favored Nation (MFN) trading status. This means that a member country must charge the same tariff on imported goods as, and not a higher one than, that charged on the same goods coming from other WTO member countries. Trade liberalization has led to increased economic development and an improved quality of life around the world.