How do international organizations regulate trade practices? 🔊
International organizations, such as the World Trade Organization (WTO), regulate trade practices through a framework of rules and agreements designed to promote fair competition and reduce trade barriers. These organizations facilitate negotiations among member states and establish guidelines for resolving trade disputes. By promoting compliance with international trade standards, they aim to foster a level playing field for all countries involved in global trade. Enforcement mechanisms can include dispute resolution processes, economic sanctions, or the implementation of trade penalties against non-compliant entities, ensuring adherence to the established agreements.
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