Why does the World Trade Organization allow countries to mai

Why does the World Trade Organization allow countries to maintain restrictions on media? How do these restrictions affect how companies operate?

Solution

Ans - One of the reason that World Trade Organisation allows countries to maintain restrictions on media is that some tasks such as national security are in within the scope of the govt responsibility within each country and within the frame of a national sovereignty.

The world traders believe that the rules provide checks and balances including mechanism that reflect political realism as well as free trade doctrine.

In order to establish sales channels , companies mormally respond to these restrictions by increasing their direct investment in import restricting countries and by commencing operation which might create jobs and encourage technology transfer. These restrictions however distort the distribution of economic benefits between importing and exporting countries in favour of the producers in the importing country. The restriction also harms consumers and downstream industries in the importing countries which have to bear the economic cost of losing access to competitive imported products.