Which statement best describes the major functions of the WTO?

Which statement best describes the major functions of the WTO?

• A. Provide weather forecasting for development projects.
• B. Oversee agreements, Settle disputes.
• C. Single-handedly set global tax rates.
• D. Monitor currency values within member economies.

Answer: (B)

The key idea is that the WTO is focused on trade rulemaking and enforcement. It administers the trade agreements that member countries negotiate and agree to follow, and it provides a formal, rules-based process to settle disputes when countries argue about those rules. This combination—overseeing agreements and resolving disputes—is what defines its major functions, making this description the best fit. Weather forecasting, setting global tax rates, and monitoring currency values lie outside the WTO’s mandate; weather is for meteorology, tax policy is typically national, and currency values relate to monetary policy and institutions like the IMF rather than WTO trade rules.

The key idea is that the WTO is focused on trade rulemaking and enforcement. It administers the trade agreements that member countries negotiate and agree to follow, and it provides a formal, rules-based process to settle disputes when countries argue about those rules. This combination—overseeing agreements and resolving disputes—is what defines its major functions, making this description the best fit. Weather forecasting, setting global tax rates, and monitoring currency values lie outside the WTO’s mandate; weather is for meteorology, tax policy is typically national, and currency values relate to monetary policy and institutions like the IMF rather than WTO trade rules.