Question

What is the WTO? Where is it located, and what does it do?

Short answer

Question: Explain the main functions of the World Trade Organization (WTO) and its location. Answer: The WTO, or World Trade Organization, is an international organization headquartered in Geneva, Switzerland, responsible for setting rules and regulations for international trade among its 164 member countries. Its main functions include administering and implementing agreements, facilitating trade negotiations, resolving trade disputes, monitoring and reviewing trade policies, providing technical assistance and capacity building, and fostering global cooperation in trade and economic development.

Step-by-step solution

What is the WTO?

The WTO stands for the World Trade Organization, which is an international organization established in 1995 that deals with the rules of trade between nations. Its main aim is to facilitate a smooth and predictable flow of international trade by setting rules and regulations for its member countries to follow.

Location of the WTO

The headquarters of the World Trade Organization is situated in Geneva, Switzerland. It has 164 member countries and is responsible for overseeing international trade negotiations, resolving trade disputes and monitoring member country policies.

Functions of the WTO

The WTO has several important functions, which include: 1. Administering and Implementing Agreements: The WTO ensures that member countries comply with the negotiated agreements and follow the principles of non-discrimination and transparency among others. 2. Facilitating Trade Negotiations: WTO provides a platform for member countries to negotiate trade agreements that result in a more open and fair global trading system. 3. Resolution of Trade Disputes: WTO's Dispute Settlement Body (DSB) resolves trade disputes that arise between its member countries, ensuring that trade conflicts are resolved through a fair and clearly-defined process. 4. Monitoring and Review of Trade Policies: WTO monitors the trade policies of its member countries and provides periodic reviews to ensure transparency and adherence to global trade rules. 5. Technical Assistance and Capacity Building: WTO provides technical support and capacity building to help developing and least-developed countries better participate in the global trading system. 6. Global Cooperation: The organization seeks to cooperate with other international organizations in the sphere of trade and economic development.