World Trade Organization Flashcards, test questions and answers

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What is World Trade Organization?

The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. It was established in 1995, replacing the General Agreement on Tariffs and Trade (GATT), which had been in place since 1947. The WTO has a membership of 164 countries and is headquartered in Geneva, Switzerland. Its main purpose is to ensure that countries abide by their commitments to the rules of international trade and promote free, fair, and efficient global commerce.The WTO promotes liberalization of world trade by setting up rules for how countries do business with each other. It does this by establishing agreements between members on tariffs, subsidies, intellectual property rights and other areas that affect global trade. Countries are also encouraged to resolve disputes through negotiation rather than through litigation or coercive measures such as economic sanctions or embargoes. The WTO also provides technical assistance to developing nations so they can better participate in international markets and benefit from increased economic growth resulting from open markets. The WTO has been criticized for its lack of enforcement mechanisms when it comes to enforcing agreements between members; however, it remains one of the most important organizations dedicated to promoting global free-trade and reducing barriers to international commerce. It has helped reduce poverty levels worldwide by increasing access to goods at lower prices for consumers as well as enhancing export opportunities for businesses around the world.