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 resolve disputes between its member nations.
Additionally, the WTO covers trade in services, such as telecommunication and banking, and other issues such as intellectual rights. It was established to look after the promotion of free and fair trade amongst nations.
Explanation
The answer draws directly from the textbook context which states that WTO 'is the only international organisation dealing with the global rules of trade between nations' and that it 'sets the rules for the global trading system and resolves disputes between its member nations.' The context also mentions that WTO covers trade in services and intellectual rights. The establishment purpose - 'promotion of free and fair trade amongst nation' - is also included to provide a complete answer for 2 marks.