World Trade Organization (WTO)

The World Trade Organization (WTO) is a global trade agreement with 150 member states accounting for 97% of the world trade. Currently, 30 other nations are negotiating membership. The purpose of the WTO is to promote fair competition and efficiency. Its approach is rooted in the standard classical economic theory of Adam Smith. Instead of each country producing the full range of products that its own market demands, all nations pool their resources to provide the best value for all consumers. In this way, products will tend to be produced where labor costs are cheapest, passing the savings onto consumers and helping to grow commerce on an international scale. Furthermore, lesser-developed countries also benefit as demand for their cheaper labor tends to rise, ultimately also ...