The role of the World Trade Organisation (WTO)
The World Trade Organisation (WTO) is an international body that sets the rules for trade between countries. It works to reduce barriers to trade and settles disputes when countries disagree.
Real World
In 2018, the US placed tariffs on Chinese solar panels; China challenged this at the WTO, which ruled some tariffs violated WTO rules, demonstrating the organisation's dispute-settlement function.
Exam Focus
When evaluating the WTO, reference its key weakness — decisions require consensus and enforcement relies on member compliance, limiting its power.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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