Chapter 18.3, Problem 3R

To determine

To explain: The way in which World Trade Organization assists in the global trade.

Explanation of Solution

In the efforts of reducing the tariffs worldwide and encouraging trade, World Trade Organization (WTO) has played a very important role. It has 147 member countries till 2007. This organization assists in global trade with decisions that affected the U.S. steel tariffs in the 2000s. Due to the WTO, the United States removed its tariffs on imported steel from other countries.

The WTO is also working on breaking the trade barriers in agriculture. This is done by WTO to make the agricultural trade free and economists believe that making the trade free can lead to poor people live a better life in developing nations. Also, the people in developed nations have to pay less for that food. The taxpayers can support large agricultural businesses. The WTO assists in global trading by reducing the barriers and supporting the businesses of developing nations.