Which organization sets the rules for the global trading system and resolves disputes between member states, with more than 160 members?

Which organization sets the rules for the global trading system and resolves disputes between member states, with more than 160 members?

• A. World Health Organization
• B. International Monetary Fund
• C. World Trade Organization
• D. International Labour Organization

Answer: (C)

The global trading system operates on a rules-based framework that shapes how countries treat imports and exports, aiming for predictable and non-discriminatory trade. The World Trade Organization is the body that creates and enforces those rules and provides a binding mechanism to resolve disputes between member countries. It administers the major trade agreements that cover goods, services, and intellectual property, and runs a structured dispute settlement process—starting with consultations, then panels, and an appeals option—where outcomes are binding on members. It has grown to include more than 160 members, reflecting broad participation in this system. In contrast, the other organizations focus on different areas: health, macroeconomic policy, and labor standards, rather than managing the global trade rules or disputes.

The global trading system operates on a rules-based framework that shapes how countries treat imports and exports, aiming for predictable and non-discriminatory trade. The World Trade Organization is the body that creates and enforces those rules and provides a binding mechanism to resolve disputes between member countries. It administers the major trade agreements that cover goods, services, and intellectual property, and runs a structured dispute settlement process—starting with consultations, then panels, and an appeals option—where outcomes are binding on members. It has grown to include more than 160 members, reflecting broad participation in this system. In contrast, the other organizations focus on different areas: health, macroeconomic policy, and labor standards, rather than managing the global trade rules or disputes.