Question

Mention two functions of World Trade Organization (WTO).

Hint:

Remember that WTO's main goal is to make international trade smooth, transparent, and fair by setting common rules and resolving disputes among nations.

Answer 1

The World Trade Organization (WTO) was established in 1995 to promote free and fair trade among member countries. It replaced the General Agreement on Tariffs and Trade (GATT). Its headquarters is located in Geneva, Switzerland.
Two Major Functions of WTO:
1. Regulation of International Trade:
- WTO frames rules and agreements to ensure smooth flow of goods and services across international borders.
- It works to reduce tariffs, remove trade barriers, and resolve disputes among nations to encourage free trade.
2. Settlement of Trade Disputes:
- WTO provides a common platform where member countries can bring their trade disputes.
- It acts as an arbitrator and ensures that trade conflicts are resolved peacefully and fairly, avoiding trade wars.
Additional Functions (for broader understanding):
- Promotes fair competition in global markets.
- Provides technical assistance and training to developing countries.
- Monitors trade policies of member nations.
Thus, WTO plays a key role in regulating world trade and resolving disputes among member countries.