The World Trade Organization regulates international trade agreements from "summary" of International Financial Management, Abridged Edition by Jeff Madura
The World Trade Organization, or WTO, plays a crucial role in overseeing and regulating international trade agreements. This organization was established in 1995 to replace the General Agreement on Tariffs and Trade (GATT) and to promote global trade by reducing trade barriers and ensuring a level playing field for all member countries. One of the main functions of the WTO is to provide a forum for member countries to negotiate trade agreements and resolve disputes related to international trade. By establishing rules and regulations that govern trade between countries, the WTO helps to prevent trade wars and protect the interests of both developed and developing nations. The WTO operates on the principle of non-discrimination, which means that member countries must treat all other members equally and cannot give preferential treatment to any one country. This principle helps to promote fair competition and prevent countries from engaging in protectionist policies that could harm other nations. In addition to regulating trade agreements, the WTO also monitors the implementation of these agreements and provides a platform for member countries to discuss and address any issues that may arise. By promoting transparency and accountability in international trade, the WTO helps to build trust among member countries and foster a more stable and predictable trading environment.- The World Trade Organization plays a vital role in shaping the global economy and ensuring that international trade is conducted in a fair and transparent manner. Through its various functions and mechanisms, the WTO helps to promote economic growth, create jobs, and improve living standards for people around the world.
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