What is the basic function of the World Trade Organisation?
The World Trade Organisation (WTO) is the only international organisation dealing with the global rules of trade between nations. Its basic function is to set the rules for the global trading system and promote free and fair trade amongst nations. It was established as a permanent institution to succeed the General Agreement for Tariffs and Trade (GATT).
Additionally, the WTO resolves disputes between its member nations to maintain harmony in trade relations. It also covers trade in services, such as telecommunication and banking, along with issues regarding intellectual rights. This ensures a comprehensive framework for international trade.
Explanation
The answer is derived directly from the textbook section titled 'World Trade Organisation'. It highlights the key functions mentioned: dealing with global rules of trade, setting rules for the global trading system, resolving disputes, and covering services and intellectual rights. The mention of GATT transformation adds context to its establishment as a permanent institution for promoting free and fair trade.