University of Central Florida (UCF) GEB3375 Intro to International Business Practice Exam 2

The primary role of the World Trade Organization (WTO) is to regulate international trade and resolve trade disputes. Established to ensure that trade flows as smoothly, predictably, and freely as possible, the WTO provides a framework for negotiating trade agreements and a platform for settling disputes that arise between its member countries.

Key functions of the WTO include:

1. **Trade Negotiations**: The WTO facilitates discussions and negotiations aimed at reducing trade barriers and creating a more transparent trading environment among member nations.

2. **Dispute Resolution**: When disputes about trade practices arise, the WTO provides a structured process for resolving these issues, allowing countries to settle disagreements peacefully rather than through unilateral action or retaliation.

3. **Monitoring Trade Policies**: The WTO also monitors and reviews the trade policies of its members to ensure compliance with agreed rules and regulations, which helps build trust and cooperation in international trade relations.

The other options, while relevant to aspects of global trade, do not accurately represent the primary function of the WTO. The organization does not impose trade tariffs (as this is the role of individual governments), does not issue loans (which is typically the function of organizations like the World Bank), and is not focused on promoting domestic industries, as its mandate revolves around