What is one purpose of the World Trade Organization?

The World Trade Organization (WTO) plays a crucial role in facilitating international trade by promoting free and fair trade practices among its member countries. One of its primary purposes is to serve as a forum for negotiating and formalizing trade agreements, which contribute to establishing global standards and reducing trade barriers. While the WTO does not specifically set global prices for goods and services, it aims to create a stable and predictable trading environment, which influences pricing through trade liberalization and regulations that member countries agree upon.

The essence of the misconception might stem from how price levels can be affected indirectly by the systems and agreements the WTO promotes among nations. By creating rules that encourage trade without unfair restrictions, the WTO indirectly contributes to an environment where market forces can operate more freely, influencing the prices of goods and services in the global marketplace.

In contrast, the other options present functions that are not aligned with the WTO's purpose. The organization does not set tariffs, impose domestic regulations, or create national trade policies; rather, it helps member countries agree on how to approach these issues collectively.