A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research report (M.Sc.) - Asian Institute of Technology, 2005

Bhutan is a small land-locked country, economically thriving with its own unique polices. The Five Year Plan policy ushers the development activity. Though contact with outside world has come about only in the recent times, the fast spreading tentacles of globalization has taught much to a small country like Bhutan. Already the trends of market access through non-discrimination principles, emphasis on management transparency, reduction of tariff and nontariff barriers, investment and creation of opportunity among nations to follow trade liberalization polices and economic development has come to the door step of Bhutanese economy and for better or worse it will touch all across the Bhutanese society. Given this irreversible trend, Bhutan has shown inclination to join N TO, obviously with the hope of reaping benefits. Right now Bhutan is marked as an observer to WTO since 1995. However, there are questions as to how Bhutan would really benefit from joining WTO. For instances, critically, the question like: Is a country economically ready and politically committed to move in line with WTO regulations and demand of the WTO member countries? This study therefore aims at finding out the true picture of WTO, its pros and cons and look at how it will be beneficial towards promoting healthy economy growth. This research study will also look at various challenges and prospects, solutions, and study about Bhutan government's policy towards WTO. This study will also analyze the impacts it (WTO) might bring to various socio-economic sector in general and Tourism Sector in particular. Finally, the study will outline some recommendations on how to maximize the positive impacts and minimize the negative impacts of joining WTO