What is one of the key functions of the World Trade Organization?

What is one of the key functions of the World Trade Organization?

• A. Set domestic trade laws
• B. Promote free and fair trade
• C. Regulate prices of goods
• D. Control import/export quotas

Answer: (B)

Promoting free and fair trade is a fundamental function of the World Trade Organization (WTO). Established to create a global framework for trade relations, the WTO aims to reduce barriers to international trade and ensure that trade flows as smoothly, predictably, and freely as possible. By doing so, it fosters an environment where all member countries can compete fairly, thus enhancing economic growth and development worldwide. This role includes facilitating negotiations between member nations, overseeing trade agreements, and providing a platform for resolving disputes. The goal is to create an equal playing field for all countries, regardless of their level of development. By prioritizing free and fair trade, the WTO supports the principles of non-discrimination and transparency, which are essential in the intricate network of global trade relationships. The other functions mentioned, such as setting domestic trade laws, regulating prices of goods, and controlling import/export quotas, are not within the purview of the WTO. Instead, these aspects are typically left to individual countries to determine based on their own economic policies and regulations.

Promoting free and fair trade is a fundamental function of the World Trade Organization (WTO). Established to create a global framework for trade relations, the WTO aims to reduce barriers to international trade and ensure that trade flows as smoothly, predictably, and freely as possible. By doing so, it fosters an environment where all member countries can compete fairly, thus enhancing economic growth and development worldwide.

This role includes facilitating negotiations between member nations, overseeing trade agreements, and providing a platform for resolving disputes. The goal is to create an equal playing field for all countries, regardless of their level of development. By prioritizing free and fair trade, the WTO supports the principles of non-discrimination and transparency, which are essential in the intricate network of global trade relationships.

The other functions mentioned, such as setting domestic trade laws, regulating prices of goods, and controlling import/export quotas, are not within the purview of the WTO. Instead, these aspects are typically left to individual countries to determine based on their own economic policies and regulations.