ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws
Which of the following best describes the main purpose of the World Trade Organization (WTO)?
The WTO exists to set and supervise the rules of trade between member states, to provide a forum for trade negotiations, and to settle trade disputes between its members. It does not lend money like the IMF or hear private commercial disputes.
- ATo provide loans to member states that have balance of payments difficulties
- BTo establish and supervise rules for trade between member states and provide a forum for negotiating and settling trade disputesCorrect
- CTo act as a court that hears commercial disputes between private companies in different countries
Explanation
The WTO sets and supervises multilateral trade rules, hosts trade negotiations and operates a dispute settlement system between member states. Lending to states with payment difficulties is the role of the IMF. Disputes between private companies are not heard by the WTO, since only member states bring cases.
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